SRINAGAR: The Jammu and Kashmir Government on Tuesday said that financial liabilities, including payments to contractors and retired employees, are being cleared on a regular basis, with over Rs18,000 crore disbursed during the financial year 2025–26.
In a reply to Starred Assembly Question tabled by MLA Sham Lal Sharma, the Finance Department stated that bills presented at treasuries are routinely processed and cleared, and no long-pending liabilities are being allowed to accumulate.
Official figures reveal that a total of Rs 7,800.58 crore has been paid to contractors during the current financial year up to March 27, 2026. Payments to retired employees have also been made at regular intervals, including Rs 2,864.14 crore towards gratuity, Rs 1,123.22 crore for commutation, and Rs773.58 crore under leave salary.
In addition, Rs 5,821.43 crore has been disbursed under General Provident Fund (GPF) withdrawals, cleared up to December 2025.
The Finance Department clarified that allocation of funds is made based on specific heads of expenditure rather than on a divisional basis. Consequently, payments processed through treasuries are also accounted for head-wise, not division-wise, making division-specific liability assessment non-applicable in the current framework.
Responding to concerns about mounting liabilities, particularly with respect to contractors and retired officials, the government maintained that payments are being released at regular intervals and that there is no systemic backlog. It did not indicate any separate time-bound mechanism, reiterating that the existing system ensures periodic clearance of dues.
The statement comes amid persistent concerns in administrative and contractor circles over delayed payments, with the government asserting that treasury-based clearances are proceeding in a structured and continuous manner.
