by Ruqaya Akhter
Despite large capital allocations, delayed releases, administrative bottlenecks, and execution challenges, preventing full spending in incomplete projects and uneven infrastructure development across districts
Budget documents of Jammu and Kashmir frequently highlight development plans running into thousands of crores of rupees. However, across the region, citizens continue to encounter incomplete roads, delayed public buildings, and infrastructure projects that remain unfinished for years. This apparent contradiction stems not only from the size of the budget but also from the persistent gap between planned funds, released funds, and ultimately spent funds. The district sector capital expenditure data for 2023–24 provide a clear illustration of how these gaps translate into uneven development outcomes across districts.
Capital expenditure refers to government spending on long-term assets such as roads, bridges, schools, hospitals, and other public infrastructure. In a geographically complex region like Jammu and Kashmir, where mountainous terrain, harsh climatic conditions, and dispersed settlements influence development costs and timelines, capital spending plays a particularly critical role. In such a context, headline allocation figures offer only a partial picture. What matters more is the extent to which planned investments are translated into actual physical assets on the ground.
For 2023–24, the total district sector capital outlay for Jammu and Kashmir stood at Rs 19,665 crore. This figure represented the government’s development plan for the year across all districts. However, when actual financial flows and spending are examined, the scale of the execution gap becomes evident. Of the total outlay, only Rs 10,269 crore was released during the year, and expenditure incurred amounted to Rs 9,141 crore. In practical terms, less than half of the originally planned capital outlay was converted into actual spending on development works.
This sequential decline from outlay to release and finally to expenditure highlights a fundamental challenge in public investment management. A simple comparison of these aggregate figures shows a sharp drop between what is planned and what is eventually spent. The chart illustrating total outlay, funds released, and expenditure incurred for 2023–24 visually captures this pattern. It demonstrates that while budgetary ambition remains high, the capacity to translate plans into completed projects remains constrained. Delays in fund release, administrative bottlenecks, and limited execution capacity at the district level all contribute to this outcome.
District-level data reveal even sharper contrasts. In the Kashmir division, Baramulla, Anantnag, Budgam, and Kupwara received relatively high capital outlays, while Srinagar and Ganderbal were allocated much smaller amounts. In the Jammu division, Rajouri, Jammu, Kathua, and Udhampur received the largest allocations, whereas districts such as Samba and Ramban were assigned comparatively modest outlays. These differences partly reflect variations in population size, geographic spread, and perceived development needs.
However, higher allocations do not necessarily result in higher levels of spending. Several districts display a significant mismatch between planned outlay and expenditure incurred. Kupwara, for example, had a capital outlay of approximately Rs 1,024 crore, but actual expenditure was limited to about Rs 399 crore. This left a gap of more than Rs 600 crore within a single financial year. For a border district with substantial infrastructure deficits, such underutilisation is particularly consequential. It reflects not a lack of developmental need but persistent difficulties in project execution.
Similar patterns are visible across other districts. Budgam recorded an outlay of more than Rs 1,035 crore but incurred expenditure of only about Rs 352 crore. Anantnag, against an outlay of nearly Rs 1,178 crore, spent around Rs 583 crore. In the Jammu division, Rajouri had an outlay of approximately Rs 2,119 crore, yet expenditure stood at about Rs 999 crore. Jammu district, despite an allocation of Rs 1,814 crore, spent only around Rs 753 crore. Kathua and Udhampur also showed expenditure levels well below half of their planned allocations.
Geographic and structural factors play a central role in shaping these outcomes. Mountainous and remote districts such as Kupwara, Kishtwar, and Ramban face higher construction costs, limited working seasons, and frequent disruptions due to weather conditions. In such areas, infrastructure projects often extend across multiple years, reducing annual expenditure even when work is ongoing. Border districts also face additional security-related constraints that affect contractor availability and the pace of implementation.
By contrast, more urban and accessible districts tend to perform better in terms of spending efficiency. Improved connectivity, easier access to construction materials, and relatively stronger administrative capacity enable projects to progress more quickly. As a result, some districts with lower overall outlays are able to utilise a higher proportion of their released funds compared to larger but more challenging districts.
The 2023–24 capital expenditure data thus reinforce a broader lesson for development policy in Jammu and Kashmir. Development outcomes are shaped less by the scale of announced allocations and more by the effectiveness of fund release mechanisms, project planning, and on-ground execution. Persistent gaps between outlay and expenditure help explain why infrastructure development often lags behind budgetary promises.
Without targeted efforts to address district-specific constraints, improve planning realism, and strengthen execution capacity at the local level, large capital allocations are likely to continue producing uneven development outcomes. Bridging the gap between financial plans and physical delivery remains essential if capital spending is to translate into tangible and equitable development across Jammu and Kashmir.
(The author is a research scholar in Economics at the University of Kashmir. Ideas are personal.)
