*Structural reforms, staff shortages, procedural delays blamed
Mohinder Verma
JAMMU, Feb 25: Despite substantial rise in Capex budget allocations to the Housing and Urban Development Department over successive financial years, utilization of development funds has remained uneven, exposing persistent structural and administrative bottlenecks. However, the department has claimed that utilization gaps persisted because of structural reforms, the introduction of institutional changes and procedural requirements.
An analysis of departmental figures from 2019-20 to 2025-26 (till January) shows a clear pattern of sharp enhancement in allocations after the reorganization of Jammu & Kashmir into a Union Territory, but inconsistent spending performance.
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Data reveals that during the financial year 2019-20, an amount of Rs 293.61 crore was released to the Housing and Urban Development Department under Capex (Regular) by the Finance Department. However, expenditure stood at Rs 197.09 crore (67%). Similarly, during the same year, an amount of Rs 358.95 crore was released under Centrally Sponsored Schemes and the expenditure including spending out of unspent funds lying in the State Nodal Agency (SNA) from previous years was Rs 286.78 crore (80%).
During the financial year 2020-21, under Capex, an amount of Rs 247.45 crore was released and expenditure was Rs 236.20 crore (95%). Similarly, under Centrally Sponsored Schemes, against a release of Rs 271.67 crore, an amount of Rs 190.96 crore (70%) was expended.
In 2021-22, an amount of Rs 1194.96 crore was released under Capex, but expenditure was only Rs 138.83 crore (12%). However, under Centrally Sponsored Schemes, the expenditure was Rs 358.49 crore against a release of Rs 470.39 crore.
During the financial year 2022-23, under Capex, an amount of Rs 983.91 crore was released, but expenditure was Rs 370.31 crore (38%), whereas expenditure under Centrally Sponsored Schemes surged to 158% during the year.
In 2023-24, against a release of Rs 793.59 crore under Capex, Rs 500.20 crore (63%) was expended. However, under Centrally Sponsored Schemes, the utilization of funds was 84%.
During the financial year 2024-25, utilization under Capex was 70%. Against a release of Rs 653.82 crore under Capex, expenditure stood at Rs 458.09 crore.
During the current financial year (2025-26 till the end of January 2026), expenditure was only 46%. Against a release of Rs 882.75 crore under Capex, only Rs 407.14 crore was expended.
These figures clearly reveal that prior to the abrogation of Article 370 and the reorganization of the erstwhile State of J&K into a Union Territory, the capital budget allocation to the department was meager. However, post-reorganization, capital allocations increased, but utilization remained uneven and below the desired level.
“These funds were primarily meant for new infrastructure and asset-creation projects, which required identification of viable projects, availability of encumbrance-free land, preparation of Detailed Project Reports and inter-departmental coordination, resulting in time lags in utilization”, the department claimed. It added, “implementation of the BEAMS mechanism was new, and the Urban Local Bodies lacked adequate hands-on experience”.
The department further claimed, “automatic surrender or lapsing of funds under BEAMS due to procedural delays contributed to lower utilization”.
Even as allocations expanded, institutional capacity at the grassroot level struggled to keep pace, sources said, disclosing that heavy dependence on the Public Works (R&B) Department reportedly slowed tendering and execution. “Weak technical and administrative infrastructure delayed project implementation despite the availability of funding,” sources further said, adding, “an overall shortage of staff at the ULB level, with only 31 Executive Officers available for 75 ULBs, dealt a major setback to operational efficiency”.
“While increased allocations demonstrate policy priority for infrastructure creation, inconsistent utilization underscores the need for administrative reforms, staffing augmentation and streamlined approval processes to ensure that developmental spending produces measurable outcomes on the ground,” sources stressed.
Departmental officers, while claiming that several corrective measures such as improved project planning, monitoring and coordination mechanisms have been introduced, said that the pace of implementation of departmental works and utilization of funds will improve.
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