The chronic underutilisation of capital expenditure in Jammu and Kashmir’s tourism sector over the past two financial years reveals more than just delayed file movement-it exposes a structural weakness in planning, execution, and accountability within a department that anchors the region’s economy. Tourism in Jammu and Kashmir is not a peripheral activity; it is a primary economic driver, supporting thousands of families engaged in hospitality, transportation, handicrafts, and allied services. Yet, despite substantial budgetary allocations, the Tourism Department has failed to convert financial approvals into on-ground assets.
The data from 2023-24 and 2024-25 present a consistent pattern. Large allocations were sanctioned for both Kashmir and Jammu divisions, but the amounts actually made available were lower, and the expenditure lower still. In 2023-24, Rs 9,457 lakh was approved for the Kashmir division, yet expenditure stood at only Rs 2,250.62 lakh. The Jammu division reflected a similar trend. The following year showed modest improvement in absolute numbers, but the utilisation ratio remained far from satisfactory. Particularly worrying is the performance of key executing agencies. The Director of Tourism, Kashmir, has funds that have remained largely unutilised in the last two years. Director of Tourism Jammu fared somewhat better but still left significant allocations untouched. When core directorates demonstrate such weak absorption capacity, it raises legitimate questions about project preparedness, tendering efficiency and administrative competence.
The situation becomes even more concerning when examining the Tourism Development Authorities managing flagship destinations such as Gulmarg, Pahalgam, Sonamarg and Patnitop. Their respective development authorities have consistently failed to exhaust sanctioned funds. Pahalgam Development Authority, for instance, could utilise only a fraction of its allocations across both years. Gulmarg and Sonamarg registered similar underperformance. Patnitop, despite receiving clearances for significant projects like the Convention Centre by the Supreme Court, also left large sums unspent. The same is the story for Surinsar, where the road and bank of the lake are sinking, yet no notable work has been done. While religious circuits of the Jammu division lack even basic amenities, underutilisation of funds is nothing but total official apathy. How can tourism development take place in Poonch, Rajouri, Doda, Kishtwar and other places when funds remain unutilised? Such underutilisation cannot be dismissed solely on grounds of “administrative delays” or “seasonal constraints”. Effective planning should account for these variables through advance tendering, staggered scheduling and multi-year project pipelines. When predictable challenges are repeatedly cited as excuses, they cease to be explanations and begin to resemble symptoms of institutional inertia.
Equally troubling is the performance of the JKTDC, which plays a central role in developing hospitality infrastructure. JKTDC’s record undermines efforts to address visible deficits in quality accommodation, wayside amenities and modern dining facilities. At a time when tourist inflow has shown signs of revival, failure to upgrade infrastructure risks eroding visitor satisfaction and long-term competitiveness. Every delayed project translates into postponed employment generation, stalled local contracts and reduced multiplier effects in the regional economy. Tourism has the potential to function as a stabilising force, particularly in areas where industrial growth is limited. Capital expenditure in this sector is foundational investment in livelihoods. When funds remain idle, opportunity costs accumulate.
Comparisons with tourism-driven states highlight the urgency of reform. Jammu and Kashmir, blessed with natural and cultural assets of global appeal, should logically be at the forefront. Instead, it struggles with fund absorption. Allocations seem to precede detailed project readiness. Without completed DPRs, land clearances, technical approvals and contractor mobilisation plans in place before the financial year begins, funds inevitably remain unspent. Monitoring mechanisms also appear ineffective. Quarterly reviews should flag low utilisation early enough for corrective intervention or reallocation.
Immediate course correction is essential. A comprehensive utilisation audit across all TDAs and directorates, followed by unspent allocations by the final quarter, should be diverted to agencies capable of execution. Practically, fund release should be linked to demonstrable milestones rather than blanket approvals. Accountability must be institutionalised at the earliest. Budget announcements generate headlines, but development credibility rests on execution. Jammu and Kashmir’s tourism sector administrative machinery must match financial ambition.
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