Srinagar, May 23: In a major move aimed at expenditure rationalization and fiscal discipline, the Jammu and Kashmir Government has issued strict economy and austerity measures for the financial year 2026-27, imposing restrictions on official functions, vehicle purchases, foreign travel, hiring of office spaces, and creation of new posts.
According to Government Order No. 198-F of 2026 dated May 22, issued by the Finance Department, all departments have been directed to adopt stringent financial prudence measures with immediate effect.
As per the order, seminars, conferences, workshops and exhibitions outside the Union Territory have been strongly discouraged, while holding meetings in private hotels and commercial venues has been completely banned. Government buildings and official infrastructure have been mandated for such events.
The government has also imposed a complete ban on official dinners, lunches, receptions and hospitality functions, except those hosted by the Lieutenant Governor and Chief Minister.
In another key decision, purchase of new government vehicles has been strictly discouraged and will only be permitted in exceptional cases with concurrence of the Finance Department. Departments have been asked to ensure optimum use and pooling of available vehicles to reduce fuel and maintenance expenditure.
The order further states that international travel by officials shall not be allowed without specific approval from the Finance Department, while officers travelling within the country have been directed to travel only by economy class irrespective of entitlement. Use of video conferencing and virtual platforms has also been emphasized to minimize travel expenses.
To cut energy costs, departments have been directed to avoid unnecessary use of official vehicles, generators, air-conditioning systems and lighting. Offices have also been instructed to reduce paper consumption and adopt a “Digital-First Governance” approach in official functioning.
The Finance Department has prohibited hiring of new office accommodations without prior approval and restricted procurement of furniture except for newly established offices. Old furniture and condemned vehicles are to be auctioned with proceeds deposited as miscellaneous revenue.
In a significant administrative measure, the government has ordered that no new posts shall be created and vacant posts lying unfilled for more than two years may be surrendered. Engagement of consultants, outsourcing agencies and contractual services will now require prior assessment of functional necessity and approval from the Finance Department.
The order also bars fresh financial commitments on schemes or proposals not included in the approved Budget Estimates for FY 2026-27. Non-priority works under the Capex Budget, including renovation of residential quarters, token provisions and non-essential projects, have also been restricted unless specifically approved by the Finance Department.
Administrative Secretaries have been made personally responsible for ensuring strict compliance with the austerity measures, while Finance Directors and Financial Advisors have been directed to submit periodic compliance reports to the Finance Department.(KNC)
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