JAMMU: Calling for a major overhaul in the way funds are planned and spent in the Union Territory of Jammu and Kashmir, the Department-related Parliamentary Standing Committee on Home Affairs has recommended stronger monitoring mechanisms, realistic project-linked allocations and a decisive push towards capital expenditure, cautioning that without these measures, large financial transfers may fail to deliver desired outcomes.
In its report tabled in Parliament, the Standing Committee, comprising 31 Members from both Lok Sabha and Rajya Sabha, observed that the J&K Union Territory projected a requirement of Rs 50,640.02 crore for Budget Estimates (BE) 2026-27, whereas an allocation of Rs 43,290.29 crore has been made, resulting in a shortfall of approximately Rs 7,350 crore vis-à-vis the projected demand.
While the allocation under Central Assistance to Union Territories has increased over BE 2025-26, it remains substantially lower than the projected requirement of Rs 50,000 crore. The Support for Capital Expenditure has remained constant at Rs 101.77 crore and has been fully utilized during 2025–26 (till January 31, 2026).
“Given the infrastructure and developmental needs of the Union Territory, there is scope for enhancing capital support to facilitate asset creation and long-term growth,” the Committee said.
It added that while the allocation for 2026-27 reflects a moderate increase over the previous year, greater alignment between projected requirements and approved allocations, improved planning of project-linked expenditure and enhanced focus on capital formation would contribute to more effective and outcome-oriented utilization of funds.
The Committee noted that as on January 31, 2026, expenditure stood at Rs 38,349.77 crore against the Revised Estimate (RE) of Rs 41,340.22 crore, indicating that a significant portion of funds remained to be utilized in the last quarter. However, the Support for Capital Expenditure has been fully utilized, reflecting efficient deployment of limited capital grants.
Expressing concern over spending patterns, the Committee advised authorities to avoid bunching of expenditure in the last quarter, warning that such practices can lead to rushed spending and compromise the quality of outcomes. It recommended strengthening periodic review mechanisms to ensure that allocations translate into tangible physical assets and measurable development outcomes.
Significantly, the Committee emphasized the need for a greater focus on capital formation, noting that allocations towards capital expenditure remain extremely limited despite being fully utilized. It observed that enhancing such support is essential for infrastructure creation and long-term economic growth in the Union Territory.
“Equity infusion for the KIRU Hydroelectric Project and allocation under the Jhelum Tawi Flood Recovery Project (JTFRP–EAP) were made at the RE stage, and expenditure is contingent upon project progress. Disaster Response Fund utilization is demand-driven and depends on the occurrence of disasters,” the Parliamentary panel said.
On the Jhelum Tawi Flood Recovery Project (JTFRP–EAP), for which Rs 259.25 crore has been allocated for 2026-27 in line with projections, the Committee called for close and continuous monitoring, given the project’s vulnerability to delays caused by weather conditions and logistical constraints. It stressed that timely execution is crucial to ensure effective flood mitigation.
The panel also turned its attention to disaster management, recommending that while allocations under the Union Territory Disaster Response Fund, which stand at Rs 279 crore, are demand-driven, the administration must place greater emphasis on preparedness, mitigation and resilience-building measures, rather than focusing solely on post-disaster relief.
“The allocation has remained consistent from 2022-23 to 2024-25 and has been fully utilized in each of these years. The UT was devastated by flash floods in August and September 2025, causing substantial loss of property and infrastructure. The entire allocation was drawn down to meet disaster response requirements,” the Committee observed, adding that any additional requirement would be met at the RE stage or through other avenues.
Underscoring the high vulnerability of the Union Territory to floods, earthquakes, landslides and extreme weather events, the Committee urged the Ministry of Home Affairs to maintain close oversight and ensure timely financial support whenever required.
The Parliamentary panel has also recommended preparation and regular updation of the UT Disaster Management Plan and District Disaster Management Plans to strengthen disaster preparedness and response mechanisms. (Excelsior)
