J&K govt announces major austerity measures; no new posts to be created, cuts in govt expenditure unveiled

12 January 2025

Srinagar: In a significant move, the Jammu & Kashmir government on has unveiled a slew of austerity measures ‘to streamline financial management and reduce miscellaneous expenses.’ The government also directed for observing utmost economy while imposing a 10% economy cut on budget allocation for other expenditures.

In an official circular, J&K Finance Department has announced several measures for rationalisation of expenditure, including holding of seminars, conferences, and workshops with utmost economy, while it also directed that holding exhibitions, fairs and conference outside J&K be strongly discouraged.

The government also imposed a 10 percent economy cut on the budget allocation for OE, LTC, telephone / POL, advertisements, publicity, hospitality & sumptuary.

“Utmost economy shall be observed in organising conferences/ seminars/workshops. Holding of exhibitions/fairs/seminars/conferences outside J&K is strongly discouraged,” the order said, adding that there shall be complete ban on holding of meetings and conferences at private hotels,” the order states.

According to the order, government buildings/halls should be utilised for holding meetings and conferences instead. It also imposed a 10 percent economy cut on the budget allocation for conduct of camps, conferences and seminars.

It also said that purchase of new vehicles is strictly discouraged. “Exceptional cases for meeting critical operational requirement shall be permitted with 20% reduction against condemnation as a replacement measure and with the concurrence of Finance Department. The already condemned vehicles must be auctioned and auction proceeds deposited as Miscellaneous Revenue before submitting such proposal,” the order said. It also directed administrative secretaries that travel expenditure should be regulated so as to ensure that each department remains within the allocated budget.

“Re-appropriation/augmentation proposals on this account will not be entertained,” it said, adding that international travel shall not be allowed until specific permission is granted by the Finance Department.

“Within the country, the officers should travel only by economy class regardless of entitlement,” the order said. It said that there shall be a 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. It said that no new post shall be created and filling of regular posts may be undertaken only through JKSSB/JKPSC routes and with concurrence of the Finance Department.

“Posts that have remained vacant for more than two year 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,” it said.

It said that local funds available with various Departments, Universities, Authorities and Agencies will also be subject to these austerity measures. According to the order, no fresh financial commitments will be made on items and proposals which are not provided for in the approved budget of 2024-25. “Any exceptional case should be dealt only with the approval of the Finance Department.”

The Finance Department has also directed respective departments that the revenue expenditure should be limited to 30% of budget allocation during the last quarter of the current financial year
and in the month of March it should be limited to 15% 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,” the circular states.

The order further directs government departments that 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.

The government has also ordered that rush of expenditure on procurement of goods and services 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 / Financial Advisor(s) are advised to specially monitor this aspect in their respective departments,” it said.

The government directed that administrative secretaries shall be responsible for ensuring compliance of the measures unveiled by it. “Director(s) Finance / Financial Advisor(s) shall scrupulously assist the respective departments in securing compliance with these measures and also submit an overall report to the Finance Department,” the order states.

—(KNO)