J&K’s finances: Debt rises, capital expenditure below budget, CAG report shows

By Shafat Malik
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06 Apr 2026

*Rs 82,547 cr expenditure led by revenue outgo; fiscal deficit above budget estimate *Rs 23,197 cr Off-budget borrowings, Rs 4,105 cr UCs pending, Rs 15,607 cr in AC bills outstanding

Srinagar, Apr 05: Jammu and Kashmir’s finances in 2024–25 show an increase in liabilities, a higher share of revenue expenditure, and delays in financial reporting, according to the Comptroller and Auditor General (CAG) of India’s Report on Union Territory Finances for 2024–25.

Total expenditure during the year was Rs 82,547.28 crore, of which 85.37 per cent was revenue expenditure, including salaries, pensions, interest payments and subsidies. The report states that committed expenditure and subsidies together accounted for 68.39 per cent of revenue expenditure and 58.39 per cent of total expenditure.

Capital expenditure was about 52 per cent lower than the Budget Estimate.

The report shows that outstanding liabilities increased from 8.87 per cent of GSDP in 2020–21 to 17.21 per cent in 2024–25. Including liabilities of the erstwhile state, the level is 48.47 per cent of GSDP.

It also records off-budget borrowings of Rs 23,197.08 crore, which are excluded from fiscal indicators.

The UT recorded a fiscal deficit of Rs 8,145.68 crore, which was higher than the Budget Estimate.

The report states that grants-in-aid from the Government of India accounted for about 72 per cent of total revenue receipts. It also records that 1,395 utilisation certificates amounting to Rs 4,105.08 crore were pending as of March 2025.

The report states that 3,068 Abstract Contingent (AC) bills amounting to Rs 15,607.21 crore were outstanding as of March 31, 2025, pending detailed adjustment.

It further states that 28 accounts relating to eight autonomous bodies were pending as of March 2025.

According to the report, Rs 1,941.43 crore was booked under Minor Head ‘800’, including Rs 49.15 crore classified under this head despite availability of appropriate heads.

J&K Finances 2024–25

● Rs 82,547.28 crore — Total expenditure

● 85.37% — Share of revenue expenditure

● Rs 8,145.68 crore — Fiscal deficit

● Rs 23,197.08 crore — Off-budget borrowings

●72% — Share of grants in revenue receipts

Composition Of Spending

● Revenue expenditure

●85.37% of total

● Committed expenditure + subsidies:

● 68.39% of revenue expenditure

● 58.39% of total expenditure