J&K Govt Imposes Austerity Measures; Bans Official Dinners, Curbs Vehicle Purchases, Foreign Tours

SRINAGAR, May 23: The Jammu and Kashmir Government has announced a series of strict austerity measures for the financial year 2026-27, imposing curbs on official functions, vehicle purchases, foreign travel, hiring of office spaces and creation of new posts as part of efforts to ensure fiscal discipline and expenditure rationalisation.

According to Government Order No. 198-F of 2026 dated May 22, issued by the Finance Department, all departments have been directed to enforce stringent financial prudence measures with immediate effect.

Under the order, seminars, conferences, workshops and exhibitions outside the Union Territory have been strongly discouraged, while meetings in private hotels and commercial venues have been completely banned. Departments have been instructed to use government buildings and official infrastructure for all such events.

The government has also imposed a ban on official dinners, lunches, receptions and hospitality functions, except those hosted by the Lieutenant Governor and the Chief Minister.

Purchase of new government vehicles has been restricted and will only be allowed in exceptional cases with approval from the Finance Department. Departments have also been directed to ensure optimum use and pooling of existing vehicles to reduce fuel and maintenance expenditure.

The order further states that international travel by officials will not be permitted without specific approval from the Finance Department. Officers travelling within the country have been directed to travel only in economy class irrespective of entitlement. The government has also stressed the use of video conferencing and virtual platforms to minimise travel expenses.

To reduce energy costs, departments have been asked to avoid 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.

The Finance Department has prohibited hiring of new office accommodation without prior approval and restricted procurement of furniture except for newly established offices. Old furniture and condemned vehicles are to be auctioned and the proceeds deposited as miscellaneous revenue.

In another significant measure, the government has ordered that no new posts shall be created, while vacant posts lying unfilled for more than two years may be surrendered. Engagement of consultants, outsourcing agencies and contractual services will now require assessment of functional necessity and prior 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 non-essential projects, have also been restricted unless specifically approved by the Finance Department.

Administrative Secretaries have been made personally responsible for ensuring compliance with the austerity measures, while Finance Directors and Financial Advisors have been directed to submit periodic compliance reports to the Finance Department.

Check Order Copy here: Order Copy