Jammu and Kashmir Chief Minister Omar Abdullah has issued a strong directive to all government departments, urging them to significantly accelerate their capital expenditure (CAPEX) and ensure the timely utilization of allocated funds. The Chief Minister emphasized that efficient spending is crucial for driving infrastructure development, enhancing public service delivery, and fostering sustained economic growth across the Union Territory. This call to action comes as the administration seeks to maximize the impact of available financial resources within the current fiscal year.
During a high-level review meeting on capital expenditure held at the Civil Secretariat, Abdullah specifically called for concentrated efforts on departments that have shown lagging performance in spending. He cautioned against the detrimental practice of deferring expenditure until the final months of the financial year, a strategy he deemed inefficient and difficult to justify. “To have money and not spend it is incompetence. This is very difficult to justify. Not having money is easier to explain, but it is impossible to explain when funds are available and remain unutilised,” the Chief Minister stated. Information reaching Tahir Rihat suggests that the meeting was deliberately convened at the commencement of the financial year, rather than towards its close, to allow for timely implementation of corrective measures and to enable departments to effectively leverage the remaining working season.
Abdullah highlighted that substantial working periods remain available in both the Kashmir Valley and the Jammu plains, underscoring that there should be no impediment to the appropriate spending of already released funds. He stressed that every department must accord this matter focused attention to ensure that financial allocations translate into tangible developmental outcomes. The meeting was attended by Ministers Sakina Itoo, Javed Ahmed Rana, Javid Ahmad Dar, and Satish Sharma. Key administrative officials present included Chief Secretary Atal Dulloo, Additional Chief Secretaries, Administrative Secretaries, the Director General (Budget), Director General (Codes), Heads of Departments, and other senior officers. Officials located outside Jammu participated remotely via video conferencing, demonstrating the administration’s commitment to inclusive engagement.
A significant portion of the review focused on the implementation of the Special Assistance to States for Capital Investment (SASCI) scheme. The Chief Minister directed departments to ensure complete utilization of allocations under this scheme, issuing a stern warning that any unspent amounts during the current financial year could negatively impact Jammu and Kashmir‘s future allocations in subsequent fiscal periods. He reiterated that every rupee designated under SASCI Part-I must be deployed effectively and instructed departments to promptly identify eligible projects. Furthermore, he urged Ministers to conduct fortnightly reviews of reform-linked targets associated with the scheme, emphasizing that successful implementation would position Jammu and Kashmir to qualify for additional financial assistance under the reform component of SASCI.
“The earlier we implement the specified reforms, the sooner we receive additional funds and the more time we will have to utilise them productively,” Abdullah observed, underscoring the administration’s proactive approach to securing and maximizing financial support for development. He further directed departments to commence work immediately on projects for which administrative approvals and tendering processes have already been finalized. These projects, he noted, could initially be funded from the CAPEX budget and subsequently reclassified under the reform-linked component of SASCI once additional funds become available, thereby optimizing resource deployment. This strategy aims to maintain momentum on critical infrastructure and development initiatives.
In a forward-looking directive, the Chief Minister instructed departments to develop a robust pipeline of projects for the upcoming financial year. This proactive planning approach is intended to prevent delays in identifying and initiating development works, ensuring a continuous flow of projects rather than waiting for funds to be released before project identification. This shift in focus from fund availability to project preparedness was highlighted as a key challenge facing the government. Additional Chief Secretary (Finance) Shailendra Kumar presented a detailed overview of the CAPEX position for 2026-27, which encompassed expenditure across the UT sector, District CAPEX, and Centrally-Sponsored Schemes. His presentation also identified departments with expenditure levels below expectations and outlined the contributing factors to the slow utilization of funds, providing a data-driven basis for the Chief Minister’s directives.
The administration’s emphasis on accelerating capital expenditure is a strategic move to translate financial allocations into tangible developmental gains. By urging departments to spend efficiently and plan proactively, the government aims to stimulate economic activity, improve public amenities, and enhance the overall quality of life for the residents of Jammu and Kashmir. The focus on schemes like SASCI further indicates a commitment to leveraging central government support for targeted development initiatives. The proactive approach to project identification and reform implementation is expected to create a more dynamic and responsive developmental ecosystem within the Union Territory.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.