JAMMU, Mar 28: The Department-related Parliamentary Standing Committee on Home Affairs has called for a major overhaul in the way funds are planned and spent in the Union Territory of Jammu & Kashmir, recommending stronger monitoring mechanisms, realistic project-linked allocations, and a decisive push towards capital expenditure. The panel warned that without such measures, large financial transfers may fail to deliver the desired outcomes.
In its report tabled in Parliament, the 31-member Standing Committee, comprising representatives from both the Lok Sabha and Rajya Sabha, noted that J&K projected a requirement of Rs 50,640.02 crore for the Budget Estimates (BE) 2026-27. However, only Rs 43,290.29 crore has been allocated, leaving a shortfall of approximately Rs 7,350 crore.
While Central Assistance to the Union Territory has increased compared to BE 2025-26, it remains substantially lower than the projected requirement of Rs 50,000 crore. Support for Capital Expenditure has remained constant at Rs 101.77 crore and was fully utilized during 2025–26 (till January 31, 2026).
“Given the infrastructure and developmental needs of the Union Territory, there is scope to enhance capital support to facilitate asset creation and long-term growth,” the Committee said. It added that greater alignment between projected requirements and approved allocations, improved planning of project-linked expenditure, and an enhanced focus on capital formation would make fund utilization more effective and outcome-oriented.
The Committee noted that as of January 31, 2026, total expenditure stood at Rs 38,349.77 crore against the Revised Estimate (RE) of Rs 41,340.22 crore, leaving a significant portion of funds unspent in the last quarter. However, Support for Capital Expenditure was fully utilized, reflecting efficient deployment of limited capital grants.
Expressing concern over spending patterns, the Committee advised authorities to avoid bunching expenditure in the last quarter, warning that such practices can lead to rushed spending and compromise quality. It recommended strengthening periodic review mechanisms to ensure allocations translate into tangible assets and measurable development outcomes.
The panel also emphasized the need for greater focus on capital formation, noting that allocations for capital expenditure remain limited despite being fully utilized. Enhancing such support is crucial for infrastructure creation and long-term economic growth in the Union Territory.
“Equity infusion for the KIRU Hydroelectric Project and allocations under the Jhelum Tawi Flood Recovery Project (JTFRP–EAP) were made at the RE stage, with expenditure contingent on project progress. Disaster Response Fund utilization is demand-driven and depends on the occurrence of disasters,” the panel said.
Regarding the Jhelum Tawi Flood Recovery Project (JTFRP–EAP), which has an allocation of Rs 259.25 crore for 2026-27, the Committee called for close and continuous monitoring, given potential delays caused by weather and logistical constraints. Timely execution, it stressed, is essential for effective flood mitigation.
The panel also addressed disaster management, recommending that while allocations under the Union Territory Disaster Response Fund (Rs 279 crore) are demand-driven, the administration should place greater emphasis on preparedness, mitigation, and resilience-building rather than focusing solely on post-disaster relief.
“The allocation has remained consistent from 2022-23 to 2024-25 and has been fully utilized each year. The UT was devastated by flash floods in August and September 2025, causing substantial loss of property and infrastructure. Entire allocations were drawn to meet disaster response requirements,” the Committee noted, adding that any additional requirements would be met at the RE stage or through other avenues.
Highlighting 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 also recommended the preparation and regular updating of the UT Disaster Management Plan and District Disaster Management Plans to strengthen disaster preparedness and response mechanisms. (Agency)
