Jammu: In a major move to improve financial discipline and ensure timely execution of development works, the Jammu and Kashmir Government has issued fresh guidelines restricting the release of funds and regulating expenditure during the last quarter of the 2026-27 financial year.
The Finance Department has directed that departments will receive the balance allocation for a project only after utilizing at least 80 per cent of the funds already released, a step aimed at preventing idle allocations and ensuring efficient use of public money.
The instructions, issued through a circular by Financial Commissioner (Additional Chief Secretary), Finance, Shailendra Kumar, came into effect immediately and will govern the release of balance budgetary allocations for the current financial year.
As per the new guidelines, departments must first spend at least 80 per cent of the funds already released for a particular work, with the expenditure reflected on the BEAMS portal and Treasury records, before seeking the remaining allocation.
The Finance Department has also instructed Administrative Departments not to wait for expenditure under other projects and to submit proposals for release of the balance funds immediately after the required utilisation level is achieved.
To avoid delays in clearing payments for completed works, the government has made a special provision for projects that have already been completed under the Annual Action Plan (AAP) 2026-27.
Such projects will be eligible for release of the remaining allocation—up to 100 per cent of the approved provision—provided the concerned Administrative Department or Executing Agency submits a specific request to the Finance Department.
However, the circular makes it clear that once the funds are released, the corresponding bills must be presented to the Treasury within 15 days. If departments fail to do so, the Finance Department can withdraw the released amount, and any future request for funds will require fresh approval.
In another significant measure, the Finance Department has capped expenditure during the last quarter of the financial year.
Departments have been instructed that spending between January and March 2027 should not exceed 25 per cent of the total Budget Estimates 2026-27 under each object head or work.
The restriction can be relaxed only with prior approval of the Finance Department in cases involving unavoidable contractual obligations, statutory payments or court-mandated liabilities.
Focus on Better Financial Planning
The Finance Department has directed all Administrative Departments to closely monitor the pace of expenditure throughout the year and ensure that development works are executed on time, thereby avoiding delays in fund releases and the traditional year-end rush to spend allocated budgets.
The circular states that the new instructions are intended to promote prudent financial management, improve utilisation of public funds and strengthen budgetary discipline across government departments.
The directions have come into immediate effect and will operate alongside the existing financial management guidelines issued by the Finance Department.
