Information furnished by only two Govt deptts
*Points out un-discharged liabilities of Rs 24,131 cr
Mohinder Verma
JAMMU, Apr 6: Raising serious concerns over fiscal management in the Union Territory of Jammu and Kashmir, the Comptroller and Auditor General (CAG) of India has revealed that huge capital expenditure remained blocked due to non-completion of 167 projects, depriving the Government of intended benefits and adding to financial strain.
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In its latest report, the supreme audit institution of the country has expressed serious concern over the capital blocked in the incomplete projects and revealed that out of the total estimated cost of Rs 591.75 crore for 167 ongoing projects, Rs 278.56 crore were spent till 2024-25. “Due to non-completion of these projects, capital expenditure has remained blocked”, the report said.
“An assessment of capital blocked in incomplete projects would also indicate the quality of capital expenditure. Blocking funds in incomplete projects/ works impinges negatively on the quality of expenditure and deprives the Government of the intended benefits of the projects for prolonged periods”, the CAG said.
Further, funds borrowed for implementation of these projects during the respective years would lead to an extra burden in terms of servicing of debt and interest liabilities.
A striking aspect of the findings is that several projects date back more than a decade. The projects initiated as early as 2008-09 and 2012-13 are still incomplete. A significant number of works were taken up between 2018-19 and 2022-23, many of which continue to remain unfinished. The highest concentration of incomplete projects is in recent years, indicating persistent execution bottlenecks rather than isolated delays.
The department-wise analysis shows that the backlog is concentrated in critical infrastructure sectors. The Public Health Engineering (Jammu) accounts for the highest number with 101 incomplete projects involving substantial costs. PHE, Peerpanjal (Jammu) has 47 incomplete works and Irrigation and Flood Control, Jammu has 19 ongoing incomplete projects. These sectors are crucial for basic services like water supply and irrigation, amplifying the impact of delays on the public.
“The information regarding incomplete works above Rs one crore has been furnished for only two departments Irrigation and Flood Control and Public Health Engineering Jammu. Due to incomplete information of the Finance Accounts for the year 2024-25 (provided by the UT Government), audit could not ascertain the actual progressive expenditure, physical progress of work, position of pending payment (future liability) and revised cost, if any, as on March 31, 2025”, the CAG said.
The report cautioned that continued borrowing for incomplete projects leads to mounting debt servicing obligations, putting additional pressure on already constrained finances. The longer the delay, the higher the cost escalation and financial liability.
The findings point towards the urgent need for time-bound completion of projects, better project planning and monitoring mechanisms and strict financial discipline to prevent cost overruns and idle investments.
With hundreds of crores locked in incomplete works and liabilities mounting, the CAG has sent a clear warning that unless systemic inefficiencies are addressed, the UT’s fiscal stability and development trajectory could face serious setbacks.
Regarding un-discharged liabilities, the report said, “deferred liabilities, if not addressed timely, will reduce the available fiscal space for future developmental and infrastructure spending. Besides creating lack of transparency and credibility, this impair the UT’s ability to raise resources in a sustainable manner, thereby impacting overall fiscal health and long-term sustainability”.
The report further said that the UT Government had accumulated several un-discharged liabilities over the years, which have significant implications for fiscal sustainability. These include non-transfer of statutory funds/cess such as Guarantee Redemption Fund (GRF) Rs 309.91crore (including Rs 69.43 crore during 2024-25) and Consolidated Sinking Fund (CSF) amounting to Rs 112.97 crore; un-discharged interest liabilities totaling Rs 45.32 crore; off-budget borrowings and other liabilities not captured in the debt stock amounting to Rs 23,197.08 crore; short/non-transfer of UT Government’s contribution to the National Pension System (NPS) amounting to Rs 396.22 crore and pending refund cases amounting to Rs 69.60 crore.
“The cumulative value of these un-discharged liabilities amounted to Rs 24,131.10 crore, which is equivalent to 9.19 per cent of the GSDP and 296.24 per cent of the Fiscal Deficit for the year 2024-25”, the CAG said while recommending that the Government disclose and address all un-discharged liabilities transparently and make provisions for timely discharge of these obligations to avoid future fiscal stress.
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