Kashmir Impulse Desk

Srinagar, May 23

The government has announced a series of austerity measures for the 2026-27 financial year, banning official dinners and restricting spending on travel, conferences, vehicles and non-essential works as part of efforts to enforce fiscal discipline.

An order issued by the Finance Department directed all government departments and institutions to rationalise expenditure with immediate effect, with a focus on reducing avoidable spending and promoting digital governance.

Under the new guidelines, departments have been asked to avoid organising seminars, workshops and conferences unless unavoidable and to prioritise virtual meetings wherever possible.

The government has also barred departments from holding official meetings and conferences in private hotels and commercial venues, directing them instead to use government buildings and conference halls.

Spending on ceremonial functions, publicity, souvenir printing and promotional material must be kept to a minimum, the order said.

In a cost-cutting measure, the Finance Department discouraged the purchase of new government vehicles. Replacement vehicles will be permitted only in exceptional cases with prior approval and subject to a 20% reduction in fleet strength.

Departments have also been instructed to auction condemned vehicles before seeking replacements.

The order further tightened rules governing official travel.

International travel by government officials will require specific approval from the Finance Department, while all domestic air travel must be undertaken in economy class regardless of entitlement.

Departments were also directed to maximise the use of video conferencing and digital communication platforms to reduce travel-related expenditure.

As part of energy conservation measures, the government asked departments to avoid unnecessary use of official vehicles, air-conditioning systems, generators and lighting equipment.

The Finance Department also imposed a complete ban on official dinners, lunches and receptions, except those hosted by the Lieutenant Governor and the Chief Minister.

The order said no new posts would be created during the current fiscal year, while vacant posts lying unused for more than two years could be surrendered unless justified under exceptional circumstances.

It also placed restrictions on fresh consultancy engagements, outsourcing arrangements and the creation of new Project Management Units without prior approval.

To promote e-governance, departments have been directed to adopt a digital-first approach by reducing physical file movement, limiting printing of bulky documents and paper consumption, and increasing the use of e-Office systems and virtual communication platforms.

The government further said funds would not be released for non-priority works under the capital expenditure budget, including renovation and upgradation of residential quarters and office buildings, unless specifically approved by the Finance Department.

Administrative secretaries and financial advisers will be personally responsible for ensuring compliance with the austerity measures, the order said.

The measures come amid a broader push by the administration to strengthen fiscal prudence and improve the efficiency of public spending in Jammu and Kashmir.