SRINAGAR: The Jammu and Kashmir Government has mandated that funds released under Part-I (Untied) of the Special Assistance to States for Capital Investment (SASCI) 2026-27 be operated through the Single Nodal Agency (SNA) framework on the Public Financial Management System (PFMS).
The Finance Department issued a detailed Standard Operating Procedure (SOP) on September 10, outlining responsibilities of Administrative Departments, Heads of Departments (HODs), Drawing and Disbursing Officers (DDOs) and implementing agencies for managing SASCI funds.
Under the procedure, the Finance Department will facilitate the uploading of approved SASCI projects on PFMS, map designated SNA accounts, process fund-release requests based on actual and eligible work done, and authorise expenditure limits for departments through the portal.
The department will also monitor fund flow, utilisation and expenditure under the SASCI-SNA framework and issue further instructions wherever required.
Administrative Departments have been directed to identify projects strictly in accordance with Government of India guidelines and submit duly approved projects to the Finance Department for uploading on PFMS.
They have also been asked to ensure the mapping of HODs, DDOs and implementing agencies on the portal and assign expenditure limits to them within two working days of receiving the limits or funds from the Finance Department.
Fund requisitions are to be based on actual and eligible work done and supported by the required documents and certifications. Each Administrative Department will also nominate a nodal officer to oversee implementation, coordination and monitoring of the SNA framework.
The SOP requires departments to monitor project-wise expenditure, fund utilisation, account reconciliation and the operation of SNA-linked accounts. Funds released under SASCI must be used only for approved projects and sanctioned purposes.
HODs and DDOs have similarly been directed to maintain proper accounts and records, ensure timely utilisation of authorised expenditure limits and comply with financial rules, procurement procedures, contractual provisions, sanctions and other statutory requirements.
Implementing agencies have been instructed to open and maintain Zero Balance Subsidiary Accounts (ZBSAs) and corresponding Holding Accounts wherever required under the SNA framework and ensure their mapping on PFMS.
They must prepare and process bills through PFMS after verifying administrative and technical sanctions, approved estimates, project scope, contractual provisions and applicable financial and procurement rules.
The agencies have also been directed to create and operationalise PFMS user IDs for a Data Operator (Maker) and Data Approver (Checker). Bills should, as far as practicable, be prepared and submitted through PFMS within two working days of receiving the expenditure limit or funds.
The SOP further stipulates that payments can be made only against admissible, verified and approved claims and within the expenditure limits authorised through PFMS.
Statutory deductions from payments to vendors and contractors, including Income Tax, Goods and Services Tax (GST), labour cess, royalty and security deposits, are to be credited to the respective implementing agency-wise Holding Accounts after payment to the vendor or contractor.
The amounts retained in Holding Accounts for such deductions cannot be treated as available funds or expenditure limits for other purposes and must be used exclusively for remittance to the appropriate government accounts.
Such statutory deductions are to be remitted weekly or within the statutory timelines prescribed under the relevant laws, whichever is earlier.
The SOP also makes the concerned implementing agency or DDO responsible for timely statutory payments, filing of returns, maintenance of records and reconciliation of deductions, challans, remittances and returns.
The Finance Department has directed all concerned authorities to regularly reconcile PFMS, Integrated Financial Management System (IFMS), bank and departmental transactions.
Departments must monitor project-wise expenditure, expenditure against authorised limits, physical and financial progress, pending bills, statutory deductions, balances in ZBSAs and Holding Accounts, and settlement of transactions.
The circular makes clear that no expenditure can be incurred beyond the expenditure limit authorised through PFMS or for any purpose other than the approved SASCI project. Any unauthorised diversion or utilisation of funds will invite action under applicable financial rules and instructions.
Administrative Departments have also been directed to collect hard copies of bills and prescribed supporting documents from DDOs every month and submit consolidated Reconciliation/Adjustment Accounts with the required documents to the Finance Department by the seventh day of the succeeding month for onward submission to the office of the Principal Accountant General, Jammu and Kashmir.
