J&K govt issues guidelines for release of balance funds, curbs last-quarter spending

Ziraat Times News Desk

Srinagar, Aug 3: The Jammu & Kashmir Finance Department has issued fresh guidelines for the release of balance budgetary allocations during the 2026-27 financial year, aiming to ensure timely execution of development works, efficient utilisation of public funds and to prevent a year-end rush in expenditure. 

According to a Finance Department circular issued on July 31, the balance allocation for any work will be released only after at least 80 per cent of the funds already sanctioned for that work have been utilised, as reflected on the BEAMS portal and Treasury accounts. 

The circular directs Administrative Departments to submit proposals for release of the remaining allocation immediately after achieving the prescribed utilisation threshold, without waiting for expenditure under other works. 

It further provides that where a work included in the Annual Action Plan (AAP) 2026-27 has been completed, the concerned Administrative Department or Executing Agency may seek release of the entire remaining approved allocation. Such requests will be examined by the Finance Department, which may release the funds subject to the condition that the corresponding bills are presented to the Treasury within 15 days. Failure to meet this deadline could result in withdrawal of the released funds, with any subsequent release requiring fresh consideration by the department. 

The Finance Department has also instructed all departments to continuously monitor expenditure and ensure timely implementation of works to avoid delays in fund releases. 

To regulate expenditure towards the close of the financial year, the circular stipulates that spending during the last quarter (January-March 2027) should not exceed 25 per cent of the Budget Estimates for 2026-27 under each object head or work. Exceptions will require prior approval from the Finance Department and will be limited to unavoidable contractual, statutory or court-mandated liabilities. 

The circular, issued by Financial Commissioner (Additional Chief Secretary), Finance Department, Shailendra Kumar, states that the instructions have come into immediate effect and are to be read alongside the existing financial management guidelines issued by the department. 

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