The Jammu and Kashmir Government has officially enforced strict austerity and expenditure rationalisation measures for the financial year. Restrictions have been imposed on official functions, official dinners, vehicle purchases, foreign travel, hiring of office space, and the creation of new posts.
In a major step towards expenditure rationalisation and fiscal discipline, the Jammu and Kashmir Government has issued strict austerity measures for the financial year 2026–27. The guidelines impose restrictions on official functions, purchase of vehicles, foreign travel, hiring of office space, 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 strict 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 other commercial venues has been completely banned. Government buildings and official infrastructure have been mandated for conducting such events.
The government has also imposed a complete ban on official dinners, lunches, receptions, and other hospitality-related functions, except for those hosted by the Lieutenant Governor and the Chief Minister.
In another significant measure, the purchase of new government vehicles has been strongly discouraged and will be allowed only in exceptional cases with the approval of the Finance Department. Departments have also been directed to ensure optimal use and pooling of existing vehicles to reduce fuel consumption and maintenance costs.
The order further states that international travel by officials shall not be permitted without specific approval from the Finance Department, while officers travelling within the country have been directed to travel only in economy class, irrespective of their entitlement. The use of video conferencing and virtual platforms has also been emphasised to minimise travel expenses.
To reduce energy costs, departments have been instructed to avoid the unnecessary use of official vehicles, generators, air-conditioning systems, and lighting. Offices have also been directed to reduce paper consumption and adopt a “Digital-First Governance” approach in official functioning.
The Finance Department has prohibited the hiring of new office accommodations without prior approval and restricted the procurement of furniture, except for newly established offices. Old furniture and condemned vehicles are to be auctioned, with the proceeds deposited as miscellaneous revenue.
In a significant administrative measure, the government has ordered that no new posts shall be created, and vacant posts remaining unfilled for more than two years may be surrendered. The 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 other 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.
An official said, “This order enforces fiscal discipline across all government departments by imposing absolute bans and strict restrictions on non-developmental expenditure.”
