New guidelines on CDF scheme issued
Unspent funds to be carried forward
Govind Sharma
JAMMU, Mar 10: To streamline the utilization of funds allocated to Members of the Legislative Assembly (MLAs) for the development of their constituencies, Government of Jammu and Kashmir today released new guidelines for the Constituency Development Fund (CDF) Scheme, following a decision by the Council of Ministers on March 3, 2025.
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Under the updated guidelines, each MLA can recommend development works amounting to Rs 3 crore annually in their constituencies. These funds are intended to create durable community assets in sectors such as drinking water, roads, education, public health, sanitation, power distribution, and tourist infrastructure. Further, nominated MLAs may also select works for implementation in any part of the Union Territory.
The guidelines specify that CDF funds should only be used for developmental projects that address locally felt needs. Revenue expenditure, including salaries or land acquisition costs, is strictly prohibited. All projects must be capable of completion within a year, or two years in areas with limited working seasons, subject to the District Development Commissioner’s (DDC) approval.
Additionally, the maximum cost for individual projects is capped at Rs 10 lakh, except in special cases where higher expenditure is justified. An illustrative list of permissible projects includes construction or upgradation of educational facilities, healthcare infrastructure, sports facilities roads, public utilities, and power infrastructure upgrades, besides grant-in-aid to old age homes, shelters, orphanages, youth clubs and sports organizations.
The MLAs from non-affected areas can recommend works upto Rs 10 lakh to DDCs in areas affected by natural calamities like flood, cyclone, earthquake and drought Further, the MLAs may use an amount upto Rs 20 lakh for providing assistance to tribal/BPL population for upgradation of housing units on rolling basis. The list of works is not exhaustive and new works can be added to the list on the recommendations of MLA if it complies with overall principles of the CDF scheme.
The new guidelines simplify the process for sanctioning and executing CDF projects. Recommendations for projects must be made on the MLA’s letterhead, and the DDC is required to complete administrative approvals within 45 days. Implementing agencies such as the Public Works Department, Rural Development, and other relevant bodies will oversee the execution of projects, ensuring compliance with technical and financial norms. The DDC would be responsible for coordination and overall supervision of the works under this scheme at the district level.
All projects must adhere to the General Financial Rules (GFR) 2017 and require mandatory financial and technical scrutiny. The MLAs shall recommend works up to the annual ceiling within 90 days of commencement of the year. It shall be obligatory for the MLA to utilize at least 80% of funds in a particular financial year. If funds are underutilized, the release of subsequent years’ allocations may be withheld until the stipulated expenditure is met.
The guidelines also emphasize transparency through open bidding processes for selecting contractors and stipulate that all statutory clearances must be obtained prior to execution. In a bid to prevent misuse, the guidelines restrict the use of CDF for projects costing less than Rs 1 lakh to a cumulative total of Rs 10 lakh annually.
The Finance Department will allocate the full Rs 3 crore to each constituency at the start of the financial year. Unspent funds will be carried forward to the next year and managed under a designated account. The guidelines also prohibit the use of CDF for maintenance and upkeep, which must be sourced from local bodies or relevant departments.
To enhance accountability, the guidelines mandate comprehensive monitoring by the DDC, including field inspections, quarterly progress reports, and financial audits. The DDC is responsible for maintaining updated records of all CDF projects and must present these at District Development Council meetings.
Moreover, no final payments shall be released in respect of works till satisfactory verification reports are received or defect liability period (wherever applicable) is successfully completed. The guidelines also emphasize transparency under the Right to Information Act, 2010. Citizens can request information about projects recommended, sanctioned, or executed under the CDF. Signboards acknowledging CDF funding must be installed at project sites.
The guidelines clearly outline works that cannot be financed under the CDF, such as construction of office buildings for Government or private entities, religious structures, and commercial projects. Additionally, funds cannot be used for construction of memorials and religious places of worship, paying salaries, land acquisition, or any form of revenue expenditure.
The revised guidelines aim to ensure effective utilization of the CDF by focusing on sustainable development projects that address the immediate needs of local communities. By enhancing transparency and accountability, the J&K Government seeks to prevent misuse of funds and promote equitable development across all constituencies.
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