J&K Govt sets expenditure norms to regulate capital spending

Srinagar, Apr 02: To improve financial discipline and ensure optimal resource allocation, the Jammu and Kashmir Government has introduced new expenditure norms to instill prudent financial management practices, particularly during critical periods of expenditure.
As per the official communication, the norms will regulate spending in the final quarter and last month of the financial year and will prevent rushed investments that may lead to undischarged liabilities and maintain prudent financial management.
However, it has been observed that in the rush to utilize funds, certain capital works, maintenance, and other expenditures may have been left unattended, violating expenditure norms, it said.
The government in response as per the communication has clarified that as per Rule 57(2) of GFR – 2017, unpaid bills from the previous financial year can be settled in the current financial year, provided they meet certain conditions which include adherence to allocated budgets, completion of codal formalities, and verification by both the concerned DDOs and Treasury officers.
To expedite the processing of such liabilities, the concerned DDOs will prepare bills through PaySys and submit them to the Treasury where Treasury officers will verify the bills before releasing payments to ensure compliance with codal formalities and financial propriety as per GFRs.
By enforcing these norms, the government aims to streamline expenditure processes, uphold financial integrity, and ensure optimal utilization of allocated resources for the benefit of the UT’s development.
It further said that during the financial year ending March 31, 2024, the UT Government significantly increased capital expenditure in key sectors like road connectivity, power development, tourism, industry, education, health, and water supply.
The ramp-up in capital expenditure, from Rs. 14,666 crore in the financial year 2022-23 to Rs. 22,400 crore in 2023-24, underscores the government’s commitment to infrastructure development, it added.
It said that simultaneously, all departments of the UT Government have shown improved utilization of funds under centrally sponsored schemes (CSS). The receipts of CSS funds surged to over Rs. 10,300 crore in 2023-24, compared to Rs. 6,386 crore and Rs. 5,997 crore in the financial years 2022-23 and 2021-22, respectively.
The successful execution of CSS and coordination with central ministries have resulted in a healthy account balance of over Rs. 3,600 crore in various state nodal accounts (SNA) of such schemes, it added.