‘Money must be spent’: CM asks departments to accelerate capital expenditure

Ziraat Times News Desk

Srinagar, July 28: Chief Minister Omar Abdullah on Tuesday directed all government departments to accelerate capital of expenditure (CAPEX) and ensure timely utilisation of funds, warning that delays in spending despite available resources are indefensible and hamper development.

Chairing a high-level review meeting on Capital Expenditure at the Civil Secretariat, the Chief Minister stressed that infrastructure development, improved public services and economic growth depend on efficient and timely use of public funds.

“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 unutilized,” Omar Abdullah said during the meeting.

He said the review had been convened early in the financial year to allow departments sufficient time to take corrective measures and make optimal use of the remaining working season across Jammu & Kashmir.

“There is still ample working season available in both the Kashmir Valley and the Jammu plains. There should be no reason why funds already released are not spent appropriately,” he said.

The meeting was attended by Ministers Sakina Itoo, Javed Ahmed Rana, Javid Ahmad Dar and Satish Sharma, besides Chief Secretary Atal Dulloo, Additional Chief Secretaries, Administrative Secretaries, Heads of Departments and senior officials. Officers stationed outside Srinagar participated through video conferencing.

Reviewing implementation of the Special Assistance to States for Capital Investment (SASCI), the Chief Minister directed departments to fully utilise allocations under the scheme, cautioning that unspent funds this year could adversely affect Jammu & Kashmir’s allocation in the next financial year.

He instructed ministers to personally monitor reform-linked targets under SASCI on a fortnightly basis, saying early implementation of specified reforms would enable the Union Territory to access additional financial assistance.

“The earlier we implement the specified reforms, the sooner we receive additional funds and the more time we will have to utilize them productively,” he said.

Omar Abdullah also directed departments to immediately commence projects where administrative approvals and tendering have already been completed. Such projects, he said, could initially be financed through the CAPEX budget and later shifted to the reform-linked component of SASCI once additional funding is received.

Expressing concern over the inability of some departments to identify projects despite the availability of funds, the Chief Minister said the government’s challenge had shifted from resource constraints to inadequate project preparedness.

He asked departments to prepare a robust pipeline of projects for the 2027-28 financial year and advised them to revisit development proposals submitted by Members of the Legislative Assembly during Budget consultations, particularly projects valued above ₹2 crore, for possible inclusion under future SASCI allocations.

The Chief Minister further directed departments to complete administrative approvals and statutory formalities well in advance to ensure projects are implementation-ready as soon as funds are sanctioned.

Calling for improved performance under Centrally Sponsored Schemes, he asked departments to closely monitor utilisation levels and ensure that funds under all development programmes are spent efficiently within prescribed timelines.

Omar Abdullah also took note of suggestions from ministers on simplifying the tendering process and directed the concerned departments to develop mechanisms for more efficient procurement while maintaining transparency and accountability.

He said the next review meeting would focus on assessing tangible improvements in expenditure performance across departments.

Earlier, Additional Chief Secretary, Finance, Shailendra Kumar, presented a detailed overview of capital expenditure for the financial year 2026-27, including spending under the Union Territory sector, District CAPEX and Centrally Sponsored Schemes. The presentation highlighted departments where expenditure remained below expected levels and identified factors contributing to slow fund utilisation.

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