Moderate increase in J&K’s central assistance allocation for 2026-27: Parl panel

Srinagar, Mar 17: The Department-related Standing Committee on the Ministry of Home Affairs has observed that there has been a moderate increase in the allocation for Jammu & Kashmir in the Budget Estimates for 2026–27 compared to the previous year.
In its report tabled in the Lok Sabha, the Committee stated that while the allocation for 2026–27 reflects a moderate increase over the previous year, greater alignment between projected requirements and approved allocations, improved planning of project-linked expenditure, and an enhanced focus on capital formation would contribute to more effective and outcome-oriented utilisation of funds.
According to the report, the Union Territory was allocated Rs 43290.29 crores against a projected requirement of Rs 50,640.02 crores.
The Committee observed that there is scope for enhancing capital support to facilitate asset creation and long-term growth.
“The Committee further notes that support for capital expenditure has remained constant at Rs 101.77 crores and has been fully utilised during 2025–26 (till 31st January 2026). In the Committee’s view, given the infrastructure and developmental needs of the Union Territory, there is scope for enhancing capital support to facilitate asset creation and long-term growth,” reads the report.
The Committee said that a significant portion of the allocation for the current fiscal was yet to be utilised.
“The Committee notes that as on 31st January 2026, expenditure stood at Rs 38349.77 crores against RE of Rs 41340.22 crores, indicating that a significant portion of funds was yet to be utilised in the last quarter. The Committee further observes that support for capital expenditure has been fully utilised, reflecting effective deployment of limited capital grants,” the report reads.
The Committee recommended that project-linked allocations, particularly under hydropower and externally aided flood recovery projects, may be synchronised with realistic implementation timelines. “Efforts may be made to avoid bunching of expenditure in the last quarter. Periodic review mechanisms may be strengthened to ensure that allocations translate into tangible physical outcomes, especially in infrastructure and recovery projects,” reads the report.
The Committee recommended close monitoring of the Jehlum Tawi Flood Recovery Project (JTFRP) so that financial releases are matched with timely physical progress. An allocation of Rs 259.25 crores has been provided in BE 2026–27 for JTFRP in line with the projection.
The Committee recommended adequate emphasis on disaster preparedness, mitigation, and resilience-building measures in addition to relief expenditure.
“The allocation under the Disaster Response Fund remains at Rs 279 crores, consistent with previous years. The Committee notes that utilisation under this head is demand-driven and contingent upon the occurrence of notified disasters. However, considering the vulnerability of the Union Territory to floods and other natural calamities, the Committee recommends that adequate emphasis be placed on preparedness, mitigation, and resilience-building measures in addition to relief expenditure,” reads the report. (KNO)