📷 Image: Wikimedia Commons / Prime Minister's Office
Politics
Centre bars use of Jammu & Kashmir savings for unapproved projects
✍️ Kashmir News Observer
🗓 16 Sep 2026, 01:46 AM
👁 8
The Union government has informed the Jammu and Kashmir administration that the state's accumulated savings cannot be diverted to finance new projects that have not received prior approval.
New Delhi has issued a formal directive to the Jammu and Kashmir administration stating that the state's fiscal surplus cannot be earmarked for any new works that lack central approval. The communication, conveyed through the Ministry of Finance, emphasizes adherence to the existing approval framework for public expenditure.
The centre's instruction comes amid ongoing scrutiny of how saved funds are allocated across the union territory. Officials were reminded that only projects cleared by the central authorities may draw on the accumulated savings, ensuring fiscal discipline and compliance with national budgeting norms.
Stakeholders in Jammu and Kashmir are now required to reassess pending proposals and seek the necessary clearances before tapping into the reserve. The move is expected to streamline spending and prevent unvetted initiatives from consuming the region's financial buffer.
The centre's instruction comes amid ongoing scrutiny of how saved funds are allocated across the union territory. Officials were reminded that only projects cleared by the central authorities may draw on the accumulated savings, ensuring fiscal discipline and compliance with national budgeting norms.
Stakeholders in Jammu and Kashmir are now required to reassess pending proposals and seek the necessary clearances before tapping into the reserve. The move is expected to streamline spending and prevent unvetted initiatives from consuming the region's financial buffer.