Srinagar: In a major move aimed at fiscal prudence and expenditure control, the Jammu and Kashmir Government has imposed a wide-ranging set of austerity measures for the financial year 2026-27, restricting non-essential spending across departments, institutions, boards, corporations, and government agencies.
The Finance Department, through Government Order No. 198-F of 2026, said the measures have been introduced for “rationalization of expenditure for fiscal prudence and economy” and shall take immediate effect.
Under the new guidelines, utmost economy has been ordered in organizing conferences, seminars, workshops, training programmes, and similar events. Departments have been asked to explore virtual alternatives before conducting physical events. Holding exhibitions, fairs, seminars, and workshops outside the Union Territory has been strongly discouraged.
The government has also imposed a complete ban on holding meetings and conferences in private hotels and commercial venues. Departments have instead been directed to use government buildings and conference halls for official functions. Expenditure on ceremonial events, commemorative functions, excessive branding, souvenir printing, promotional material, and other non-essential publicity activities has also been ordered to be minimized, with emphasis on digital dissemination instead of printed publicity material.
In another significant restriction, purchase of new vehicles has been “strictly discouraged.” The order states that only exceptional cases involving critical operational requirements may be considered, subject to concurrence of the Finance Department and replacement against condemned vehicles with a mandatory 20 percent reduction in fleet strength. Departments have also been directed to auction condemned vehicles and deposit proceeds as miscellaneous revenue before seeking replacement proposals.
The government has further instructed departments to ensure optimal utilization and pooling of existing official vehicles and avoid deployment beyond functional necessity in order to reduce fuel consumption and maintenance expenditure.
The austerity measures also place curbs on official travel. International travel by officers will not be permitted without specific approval from the Finance Department. Departments have been directed to make effective use of video conferencing and virtual platforms for meetings and consultations. The order further states that all officers, irrespective of entitlement, shall travel only by economy class for domestic travel whenever travel becomes unavoidable.
To reduce fuel and energy expenditure, the government has directed departments to avoid unnecessary use of official vehicles, generators, air-conditioning systems, lighting, and other energy-consuming equipment. Offices have also been instructed to reduce avoidable movement of official vehicles and prefer road or rail travel within the UT. Contingent expenditure has been restricted strictly to unavoidable operational requirements.
Director Finance, Financial Advisors, Chief Accounts Officers and Chief Administrative Officers have been tasked with periodically reviewing expenditure under petrol, oil and lubricant (POL) and electricity charges to ensure strict economy.
The order also imposes restrictions on hiring office accommodation and procurement of furniture and fixtures. No new office accommodation can be hired without prior concurrence of the Finance Department and certification regarding non-availability of suitable government accommodation. Similarly, no furniture shall be procured except for newly established offices and only with Finance Department approval. Old and dilapidated furniture has been ordered to be identified for disposal through public auction.
The Finance Department has also directed all departments to adopt a “digital-first” governance approach. Physical meetings, printing of bulky documents, physical circulation of files, and avoidable paper consumption have been ordered to be minimized through maximum use of e-office systems, video conferencing, and digital communication platforms.
One of the strictest provisions in the order is a complete ban on official dinners, lunches, receptions, and similar hospitality functions, except those hosted by the Lieutenant Governor or the Chief Minister.
The government has also prohibited creation of new posts. Filling of regular vacancies will only be allowed through prescribed recruitment agencies such as the Jammu and Kashmir Public Service Commission and Jammu and Kashmir Services Selection Board, and only with concurrence of the Finance Department. Departments have additionally been asked to identify posts lying vacant for more than two years for surrender, except in rare and unavoidable circumstances.
Engagement of consultants, outsourcing agencies, and contractual support services shall now require careful assessment of functional necessity and availability of in-house capacity. The order specifically states that no new Project Management Units (PMUs) shall be created by any department.
The austerity measures have also been extended to universities, authorities, boards, corporations, and agencies using local funds. The order mandates strict compliance with General Financial Rules (GFR), Central Vigilance Commission guidelines, e-tendering procedures, GeM-based procurement norms, technical sanctions, and administrative approvals.
Under the Capex Budget, the government has barred budget releases through the BEAMS system for non-priority works and activities. These include repair, renovation and upgradation of residential quarters and office buildings, token provisions, lump-sum provisions, and similar non-essential works unless specifically approved by the Finance Department.
The order further states that no fresh financial commitments shall be made on items, schemes, or proposals not provided for in the approved Budget Estimates for FY 2026-27. Any relaxation or deviation from the austerity measures will require prior approval of the Finance Department.
Administrative Secretaries have been made personally responsible for ensuring strict compliance with the austerity directives. Directors Finance and Financial Advisors have also been directed to assist departments in enforcement and submit periodic compliance reports to the Finance Department.
