SRINAGAR: The Department-related Parliamentary Standing Committee on Home Affairs has called for a comprehensive overhaul in the planning and utilisation of funds in the Union Territory of Jammu Kashmir, warning that substantial financial allocations may not yield desired outcomes without stronger monitoring, realistic budgeting and a sharper focus on capital expenditure.
In its latest report tabled in Parliament, the 31-member panel noted a significant mismatch between projected requirements and actual allocations for 2026–27. The Union Territory had projected a requirement of Rs 50,640.02 crore under Budget Estimates (BE), but was allocated Rs 43,290.29 crore, leaving a shortfall of approximately Rs 7,350 crore.
The Committee observed that although Central Assistance to Union Territories has increased compared to the previous fiscal, it remains considerably below the projected requirement of Rs 50,000 crore. It emphasized the need for better alignment between financial projections and approved allocations to ensure more effective utilisation of funds.
Highlighting concerns over spending patterns, the panel pointed out that as of January 31, 2026, expenditure stood at Rs 38,349.77 crore against a Revised Estimate (RE) of Rs 41,340.22 crore, indicating that a substantial portion of funds was likely to be spent in the final quarter. It cautioned against such “bunching” of expenditure, noting that rushed spending can compromise the quality and outcomes of development projects.
The Committee recommended the strengthening of periodic review mechanisms to ensure that financial allocations translate into tangible assets and measurable development outcomes. It stressed that improved planning of project-linked expenditure is essential for efficient fund deployment.
A key concern flagged in the report is the limited allocation towards capital expenditure. While the Support for Capital Expenditure stood at Rs 101.77 crore and was fully utilised during 2025–26 (up to January 31), the Committee said the amount remains inadequate given the Union Territory’s infrastructure and development needs. It called for a decisive increase in capital support to drive asset creation and long-term economic growth.
“Greater focus on capital formation is essential, especially when existing allocations are being efficiently utilised,” the report noted.
The panel also reviewed major ongoing projects, including the Kiru Hydroelectric Project and the Jhelum Tawi Flood Recovery Project (JTFRP–EAP). It noted that allocations for these projects were made at the Revised Estimate stage and that expenditure remains contingent on project progress.
For the JTFRP, which has been allocated Rs 259.25 crore for 2026–27, the Committee recommended close and continuous monitoring, citing vulnerabilities to delays due to weather conditions and logistical challenges. It stressed that timely execution is critical for effective flood mitigation in the region.
On disaster management, the Committee underscored the need to shift focus from post-disaster relief to preparedness and mitigation. The Union Territory Disaster Response Fund, with an allocation of Rs 279 crore, has remained consistent over recent years and has been fully utilised, including during the devastating flash floods of August and September 2025.
Given Jammu Kashmir’s vulnerability to floods, earthquakes, landslides and extreme weather events, the panel urged the Ministry of Home Affairs to ensure timely financial support and maintain close oversight of disaster response mechanisms.
It further recommended the preparation and regular updating of the Union Territory Disaster Management Plan and District Disaster Management Plans to strengthen institutional readiness and resilience.
The Committee concluded that without systemic improvements in planning, monitoring and capital investment, increased financial transfers alone may fall short of delivering sustainable development outcomes in the Union Territory.
