Fiscal prudence drill 2025-26: J&K Finance Deptt rolls out austerity measures

Jammu, Oct 31: J&K Finance department Friday rolled out its austerity measures as part of its annual drill of “rationalization of expenditure for fiscal prudence and economy” during the current financial year 2025-26 with immediate effect.

The guidelines, as usual, stipulate complete ban on holding of official dinners and lunches, except those hosted by the Lieutenant Governor and Chief Minister or with specific approval of the Chief Minister.

Besides, no new posts will be created and the filling of regular posts may be undertaken only through JKSSB and JKPSC routes and with concurrence of the Finance Department.

“Posts that have remained vacant for more than two years should be identified for surrender. Such posts should not be revived except under rare and unavoidable circumstances and after seeking clearance from the Finance Department,” Principal Secretary Finance Santosh D Vaidya has directed.

As part of the guidelines, for the balanced pace of expenditure, during the last quarter of the current financial year the revenue expenditure should be restricted to 30 percent of budget allocation and in the month of March, the expenditure should be restricted to 15 percent of such allocation.

In the last month of the current financial year, payments may be made only for the works duly executed, and the goods and services already procured. “Hence, no amount should be released in advance in the last month with the exception of the loans or advances to government servants as per service conditions or on compassionate grounds or to disaster victims as a measure of relief and rehabilitation,” Vaidya has ordered.

With regard to local fund utilization, he has specified that the local fund available with various departments, Universities, authorities and agencies will be subject to the austerity measures. The compliances of GFRs, CVC guidelines and instructions issued by government for e-tendering, GEM based procurement, technical sanction and administrative approval must be followed.

“The non-priority items of works under the Capex budget may put a strain on the resources required for priority works and also amounts for wasteful expenditure. As such, budget release under all non-priority new works, activities like repair, renovation, upgradation of residential quarters, office buildings, token provisions, lump sum provisions etc kept under BE 2025-26, will not be released through BEAMS except under exceptional cases,” Vaidya directed.

The guidelines have specified that no fresh financial commitments will be made on items and proposals which are not provided for in the approved budget of 2025-26. Any exceptional case should be dealt only with the approval of the Finance Department.

Rush of expenditure on procurement of goods and services, as per guidelines, should be avoided during the last month of the current financial year to ensure that codal procedures are complied with and there is no infructuous expenditure.

Director(s) Finance and Financial Advisor(s) have been advised to specially monitor this aspect in their respective departments.

10 percent economy cut has been imposed on the budget allocation for OE, LTC, telephone, POL, advertisements, publicity, hospitality and sumptuary activities.

“Utmost economy will be observed in organising conferences, seminars, workshops. Holding of exhibitions, fairs, seminars and conferences outside 3&K is strongly discouraged. There will be a complete ban on holding of meetings and conferences at private hotels. Government buildings and halls should be utilized for holding meetings and conferences instead. 10 percent economy cut is imposed on the budget allocation for conduct of camps, conferences and seminars,” the austerity measures stipulate.

Purchase of new vehicles will be restricted. Exceptional cases for meeting critical operational requirements will be permitted with 20 percent reduction against condemnation as a replacement measure and with the concurrence of the Finance Department.

The already condemned vehicles must be auctioned and auction proceeds deposited as Miscellaneous Revenue before submitting such a proposal.

“Travel expenditure should be regulated so as to ensure that each Department remains within the allocated budget. Re-appropriation and augmentation proposals on this account will not be entertained. International travel shall not be allowed without specific permission as granted by the Finance Department,” Vaidya has directed.

Within the country, the officers, as per guidelines, should travel only by economy class regardless of entitlement. Facility of Video Conferencing may be used effectively and travel for the purpose of attending meetings should be avoided to the extent possible. 10 percent economy cut has been imposed on the travel expenses budget allocation for 2025-26.

“No furniture will be procured except in case of newly established offices with the concurrence of the Finance Department. The old dilapidated furniture shall be auctioned and auction proceeds deposited as Miscellaneous Revenue,” it has been directed.

Administrative Secretaries will be responsible for ensuring compliance of the austerity measures. Director(s) Finance and Financial Advisor(s) will scrupulously assist the respective departments in securing compliance with these measures and also submit an overall report to the Finance Department.