SRINAGAR: The Jammu and Kashmir Government has rolled out strict austerity measures for the financial year 2026–27 with the aim of rationalising expenditure and reinforcing fiscal discipline.
The guidelines place curbs on official functions, purchase of vehicles, foreign travel, hiring of office accommodation, and the creation of new posts.
As per Government Order No. 198-F of 2026 dated May 22, issued by the Finance Department, all departments have been instructed to enforce strict financial prudence measures with immediate effect.
Under the new guidelines, seminars, conferences, workshops and exhibitions held outside the Union Territory have been strongly discouraged, while the use of private hotels and commercial venues for official meetings has been completely prohibited. All such activities are to be conducted in government buildings and official facilities.
The order further imposes a complete ban on official dinners, lunches, receptions and hospitality-related functions, with exceptions limited only to events hosted by the Lieutenant Governor and the Chief Minister.
Purchase of new government vehicles has been heavily restricted and will be allowed only in exceptional cases with the approval of the Finance Department. Departments have been directed to maximise the use and pooling of existing vehicles in order to reduce fuel and maintenance costs.
International travel by officials will not be permitted without specific clearance from the Finance Department, while domestic travel has been limited to economy class irrespective of entitlement. The government has also encouraged greater use of video conferencing and virtual platforms to reduce travel expenditure.
To curb energy costs, departments have been instructed to minimise unnecessary use of official vehicles, generators, air-conditioning systems and lighting. Offices have also been asked to reduce paper usage and adopt a “digital-first” approach in administrative work.
The Finance Department has prohibited the hiring of new office premises without prior approval and restricted the procurement of furniture except for newly established offices. Disposal of old furniture and condemned vehicles has been permitted through auction, with proceeds to be credited as miscellaneous revenue.
In a major administrative decision, the government has directed that no new posts shall be created. Vacant posts remaining unfilled for over two years may be surrendered. Engagement of consultants, outsourcing agencies and contractual manpower will now require prior assessment of necessity and approval from the Finance Department.
The order also bars new financial commitments on schemes or proposals not included in the approved Budget Estimates for 2026–27. Non-priority works under the Capex Budget, including renovations of residential quarters, token allocations, and other non-essential projects, will not be undertaken without specific approval.
Administrative Secretaries have been made personally responsible for ensuring compliance with the austerity instructions, while Finance Directors and Financial Advisors have been directed to submit periodic compliance reports to the Finance Department.
