Chief Minister Urges Departments to Accelerate Fund Utilization for Development

New Delhi, India Jul 29, 2026 ALN: Srinagar: Chief Minister Omar Abdullah on Tuesday chaired a high-level review meeting on Capital Expenditure (CAPEX) at the Civil Secretariat here and directed all departments to significantly accelerate the pace of expenditure, emphasizing that timely utilization of available funds is critical for infrastructure development, public service delivery, and sustained economic growth.

The Chief Minister underscored the need for focused attention on departments lagging in expenditure and cautioned against the practice of delaying spending until the closing months of the financial year. This practice not only hampers development initiatives but also leads to a backlog of projects that could otherwise enhance the quality of life for residents.

“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,” the Chief Minister said while addressing the meeting. This statement reflects a broader concern within government circles regarding the effective management of public funds and the accountability of various departments in their financial dealings.

The Chief Minister said the review was intentionally convened at the beginning of the financial cycle rather than towards the end of the year so that corrective measures could be taken in time and departments could utilize the remaining working season effectively. This proactive approach aims to prevent the last-minute rush that often characterizes public sector spending, which can lead to subpar project implementation and wastage of resources.

“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. Every department must give this focused attention,” he said. The Chief Minister’s focus on maximizing the working season highlights the importance of seasonal considerations in project planning and execution, particularly in regions with distinct climatic conditions that can affect construction timelines.

The meeting was attended by Ministers Sakina Itoo, Javed Ahmed Rana, Javid Ahmed Dar, and Satish Sharma, along with Chief Secretary Atal Dulloo, Additional Chief Secretaries from various departments, and other senior officers. The inclusion of outstation officers via video conferencing underscores the government's commitment to inclusivity and collaboration across different regions of the Union Territory.

Reviewing the implementation of the Special Assistance to States for Capital Investment (SASCI), the Chief Minister directed departments to ensure full utilization of allocations under the scheme. He warned that any unspent amount during the current financial year would reduce Jammu and Kashmir’s allocation in the next fiscal. This creates a direct link between current financial discipline and future funding opportunities, emphasizing the need for departments to be proactive in their spending.

He stressed that every rupee available under SASCI Part-I must be utilized and instructed departments to identify eligible projects without delay. The SASCI initiative is aimed at providing financial assistance to states for capital investments, which is crucial for infrastructure development in Jammu and Kashmir, a region that has historically faced challenges in terms of economic growth and development.

The Chief Minister also directed ministers to personally review reform-linked targets under the scheme on a fortnightly basis so that Jammu and Kashmir could qualify for additional financial assistance under the reform component of SASCI. “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 observed. This statement reinforces the idea that timely action and reform can yield significant financial benefits for the state.

He asked departments to immediately begin work on projects where administrative approvals and tendering had already been completed, stating that such projects could initially be funded through the CAPEX budget and later shifted to the reform-linked component of SASCI once additional funds become available. This flexible funding approach is designed to ensure that projects do not stall due to financial constraints, thereby allowing for continuous development progress.

Furthermore, he directed departments to prepare a robust pipeline of projects for the next financial year instead of waiting for funding before identifying development works. This forward-thinking strategy is intended to streamline the planning process and ensure that projects are ready to be implemented as soon as funds are allocated, reducing delays and enhancing the efficiency of public spending.

Expressing concern over the inability of some departments to identify projects despite the availability of financial resources, the Chief Minister remarked that the government’s challenge had shifted from shortage of funds to inadequate project preparedness. This shift indicates a need for improved project management practices and better strategic planning within departments to ensure that available funds are utilized effectively.

He advised departments to revisit the development priorities submitted by Members of the Legislative Assembly during the Budget consultations and utilize proposals, particularly projects exceeding the ₹2 crore threshold, for inclusion under future SASCI funding. This approach encourages collaboration between elected representatives and government departments, ensuring that development initiatives align with the needs and priorities of the local population.

The Chief Minister also instructed departments to initiate administrative approvals and other statutory formalities well in advance so that projects for the 2027-28 financial year remain implementation-ready as soon as funds are sanctioned. This proactive planning is critical for avoiding delays that can arise from bureaucratic processes, ensuring that projects can commence without unnecessary hold-ups.

Highlighting the need to improve expenditure under Centrally Sponsored Schemes, the Chief Minister directed departments to closely monitor utilization levels and ensure that funds released under all development programmes are spent efficiently and within stipulated timelines. This focus on monitoring and accountability is essential for maximizing the impact of centrally sponsored initiatives, which play a significant role in financing development across various sectors.

He also took note of suggestions made by ministers regarding simplification and streamlining of the tendering process and directed the concerned departments to evolve an appropriate mechanism to make procurement procedures more efficient while maintaining transparency and accountability. Simplifying these processes can lead to faster project initiation and completion, ultimately benefiting the public.

Expressing confidence that departments would respond with urgency, the Chief Minister said the next review would assess tangible improvements in expenditure performance across sectors. This commitment to regular assessment and accountability reflects a broader strategy to enhance the efficiency of government operations and ensure that public resources are managed responsibly.

Earlier, Additional Chief Secretary, Finance, Shailendra Kumar, gave a detailed presentation on the Capital Expenditure position for the financial year 2026-27, covering expenditure under UT sector, District CAPEX, and Centrally Sponsored Schemes. He also highlighted departments where expenditure remained below expected levels and outlined the factors contributing to slow utilization of funds. This data-driven approach to financial management is critical for identifying bottlenecks and developing targeted strategies to enhance spending efficiency.