J&K’s capital expenditure drops sharply to Rs 2574 crore till September
Srinagar, Oct 28: Jammu and Kashmir has witnessed a steep decline in capital expenditure during the ongoing financial year, with spending till September 30, 2025, standing at only Rs 2574.22 crore compared to Rs 4156.38 crore during the same period last year.
The figures were revealed in a written reply tabled in the J&K Legislative Assembly by the Finance Department in response to a question by Peoples Conference (PC) leader and MLA Handwara, Sajad Gani Lone.
According to the official data, capital expenditure in the first quarter of 2025-26 was just Rs 280.73 crore, while the second quarter saw a rise to Rs 2293.49 crore.
In comparison, during 2024-25, the government had spent Rs 2234.18 crore and Rs 1922.20 crore in the corresponding quarters.
Officials attributed the higher spending in early 2024-25 to the clearance of around Rs 1300 crore in pending liabilities from the previous financial year (2023-24).
The Finance Department replied that the total expenditure up to September 2025 stood at Rs 33,568.49 crore, including Rs 30,994.27 crore in revenue expenditure.
Despite the fall in capital spending, the government maintained that the fiscal position and liquidity status of J&K remain stable.
J&K received Rs 41,000.07 crore as grant-in-aid from the Centre under Demand No 58 for the current fiscal year.
As of September 30, J&K’s tax revenue receipts stood at Rs 6777 crore, while non-tax revenue was Rs 4207 crore, resulting in total revenue generation of Rs 10,984 crore.
The total liability of J&K was pegged at Rs 6500.95 crore, mainly related to provident fund, gratuity, and other committed financial liabilities, the reply states.
The government said the timely release of central grants and prudent expenditure management had ensured there were no liquidity constraints affecting developmental or committed expenditures.
For 2025-26, a total allocation of Rs 1,12,310 crore has been made, with Rs 27,073.10 crore earmarked for infrastructure, Rs 30,118.10 crore for the social sector, Rs 13,034.35 crore for the economic sector, Rs 32,563.58 crore for the finance sector, and Rs 6,820.87 crore for the administrative sector.
The Finance Department said it continues to ensure timely authorisation of budgets through the BEAMS portal, while periodic reviews are being conducted to monitor the utilisation of funds, especially in the Kashmir division, where the working season is limited.
