SRINAGAR: The Public Works (Roads and Buildings) Department of Jammu and Kashmir utilised only 49 per cent of Rs 1,974.98 crore released under NABARD funding during 2018-19 to 2022-23, with audit scrutiny finding that expenditure remained substantially below the funds made available in each of the five years.
According to the audit findings, the department received Rs 1,974.98 crore during the period, comprising Rs 77.21 crore as State/UT share and Rs 1,897.77 crore as loan. Against the total releases, expenditure amounted to Rs 974.74 crore, including Rs 40.43 crore from the State/UT share and Rs 934.31 crore from the loan component.
The utilisation rate ranged from 33 per cent to 65 per cent during the period. The lowest utilisation was recorded in 2021-22, when only 33 per cent of the funds released were spent, while the highest was 65 per cent in 2018-19.
The audit also found that the State/UT share was not released at all during 2020-21.
Rs 869.08 crore released in 2022-23
The department received its highest annual allocation during 2022-23, when Rs 869.08 crore was released, including Rs 14.35 crore as State/UT share and Rs 854.73 crore as loan.
Expenditure during the year stood at Rs 511.34 crore, resulting in utilisation of 59 per cent.
In 2021-22, Rs 595.83 crore was released, comprising Rs 40.87 crore as State/UT share and Rs 554.96 crore as loan. However, expenditure was limited to Rs 195.61 crore, or 33 per cent of the funds available.
During 2020-21, the department received Rs 212.80 crore entirely through the loan component and spent Rs 98.63 crore, resulting in utilisation of 46 per cent.
In 2019-20, Rs 153.92 crore was released and Rs 76.08 crore was spent, translating into 49 per cent utilisation.
For 2018-19, Rs 143.35 crore was released, while expenditure stood at Rs 93.08 crore, giving a utilisation rate of 65 per cent.
21 of 24 sampled divisions recorded utilisation below 50 percent
The audit scrutiny revealed that the issue extended to individual divisions. In 21 of the 24 divisions selected for sampling, utilisation of NABARD funds fell below 50 per cent in certain years.
In these instances, utilisation ranged from as low as one per cent to 49 per cent, according to the audit report.
The figures for 2018-19 and 2019-20, however, relate only to the Chief Engineer, Jammu. The records of the Chief Engineer, PW (R&B) Department, Kashmir, for these two years were destroyed in a fire.
Department cites forest clearances, land disputes and other delays
The low utilisation was attributed by the department to several difficulties encountered during project execution.
In its response to the audit in July 2023, the Chief Engineer, PW (R&B) Department, Jammu, said full utilisation was not practically possible because works were affected by delayed forest clearances, land disputes, court cases, poor response to Notice Inviting Tenders, compensation issues and the shifting of utilities by other departments.
The department also cited the difficult hilly terrain, availability of raw materials and weather conditions as factors affecting execution and expenditure.
In a further response submitted in December 2025, the department said utilisation during 2018-19 to 2022-23 had also been affected by external factors, including the reorganisation of the erstwhile State and the COVID-19 pandemic.
The department stated that expenditure had improved consistently from 2022-23 onwards following the normalisation of field conditions.
Audit stresses need for encumbrance-free sites
The audit highlighted the need to ensure that sites are free from encumbrances before construction work begins.
It observed that providing an encumbrance-free site is essential before commencement of a project, warning that otherwise works could repeatedly face stoppages, leading to delays and cost escalation.
The findings point to a significant gap between the release of NABARD funds and their actual utilisation, with the department spending less than half of the total funds released over the five-year period.
