J&K Finance Dept launches austerity drive, bans luxury travel and curbs non-essential expenses
Srinagar, April 9: In a significant step towards fiscal prudence, the Finance Department of Jammu and Kashmir has directed all government officers to travel strictly by economy class and implement sweeping cost-cutting measures across departments. The new guidelines, issued today by Principal Secretary Finance Santosh D. Vaidya, aim to ensure responsible and efficient utilisation of funds under the 2025–26 revenue budget.
According to the official circular, no international travel shall be permitted without prior explicit approval. Domestic travel, irrespective of the officer’s grade or entitlement, must be conducted in economy class to curb unnecessary expenses. Departments have been told to operate strictly within the sanctioned budgets and avoid any deviation without prior approval from the Finance Department.
The guidelines further impose curbs on various other expenditures. These include Leave Travel Concession (LTC), telephone bills, fuel (PoL), advertisements, publicity, hospitality, and sumptuary expenses. Government departments have been advised to utilise government-owned venues for hosting seminars, workshops, training camps, and conferences to avoid unnecessary rental costs.
Additionally, the Finance Department has mandated the timely clearance of electricity and water bills for all government premises and directed that every government office must have metered connections to monitor and reduce utility consumption effectively.
In terms of asset procurement, the order discourages the purchase of new vehicles unless strictly necessary and in compliance with the government’s car policy. Departments have been instructed to re-evaluate the current deployment of vehicles to ensure optimal utilisation before proposing any new purchases.
To further streamline government operations and reduce wasteful expenditure, the Finance Department has recommended rationalisation of staff, regular cadre reviews, biometric attendance enforcement, and strict adherence to e-tendering protocols. All procurement must be routed through the Government e-Marketplace (GeM) to enhance transparency and competitiveness.
All e-tendering and bidding processes must be completed by April 30 for the financial year 2025–26, and strict ceilings have been set on quarterly and monthly expenditures. Departments have been instructed not to exceed 30 percent of their total annual budget during the last quarter of the financial year and must restrict spending in the final month to just 15 percent of the overall budget.
The order also categorically states that no diversion of funds under any circumstances shall be allowed unless expressly authorised by the Finance Department, reinforcing the administration’s commitment to transparent and disciplined fiscal management.
