Finance deptt conveys Capex ceilings to departments, districts for FY 2026–27

Jammu, Apr 2: The Jammu & Kashmir Government has issued detailed guidelines and conveyed Capital Expenditure (Capex) ceilings to all departments including District Capex, for the Budget Estimates 2026–27, aimed at ensuring timely authorization, efficient utilization, and outcome-driven implementation of development works across Jammu and Kashmir.
The office memorandum issued by Finance Department has directed all Administrative Departments and District Development Commissioners (DDCs) to upload approved works and activities on the BEAMS portal as per the prescribed B12 statement, enabling the Finance Department to authorize 50 percent of the allocated funds immediately for execution of development works.
To ensure timely budget authorization and expenditure, all departments and districts have been asked to upload approved works by April 21, 2026. The responsibility for timely and accurate uploading has been fixed on Director(s) Finance, Financial Advisors, Chief Accounts Officers, Planning Officers, and Controlling Officers at the departmental level.
Similarly, District Development Commissioners have been directed to finalize and upload District Plans, in consultation with MLAs and other elected representatives, within the stipulated timeline. The planning process is to reflect a “whole-of-government and whole-of-society” approach, integrating departmental and district-level priorities.
The Finance Department has laid significant emphasis on prioritization of ongoing works, mandating that at least 70 percent of the Capex allocation be utilized for completion of ongoing projects and 30 percent may be earmarked for new works. This measure aims to prevent spread of resource thinly over a number of years, ensure timely completion of projects and to avoid starting large number of under-funded works.
Departments have also been instructed to prioritize pending JPKCC projects and address funding gaps in languishing projects within the available ceilings. All such works must be clearly identified on the BEAMS portal with proper coding.
The timeline for completion of new works has been fixed between one to two years, extendable up to three years only in exceptional cases involving mega projects. All spillover and ongoing works expected to be completed during 2026–27 or shortly thereafter shall be treated as the first charge on the Capex Budget.
Reinforcing outcome-based governance, departments have been directed to prepare Annual Plans clearly outlining measurable outcomes, including the number of works to be completed and the number of beneficiaries. The focus, the government said, must remain on public benefit rather than mere expenditure.
Strict financial discipline has been emphasized, with clear instructions that Capex funds shall not be diverted for revenue expenditure. Departments have also been advised against funding incomplete DPRs, such as projects lacking essential components like equipment, utilities, or infrastructure support.
Further, all Centrally Sponsored Schemes (CSS) and NABARD projects must reflect both Central and UT shares on the BEAMS portal to ensure complete financial transparency.
To streamline project execution, it has been made mandatory that land compensation, forest clearance costs, and utility shifting components be included in DPRs. Forest compensation, in particular, is to be requisitioned in one go to avoid delays.
The Finance Department has also directed that no deviation from approved project scope or bill of quantities shall be permitted beyond prescribed limits. Executing agencies must upload pre-, during-and post-execution photographs on the PROOF application to ensure transparency and monitoring.
Administrative Departments and DDCs have been asked to review and rationalize previously uploaded works on BEAMS by eliminating non-priority or non-starter projects, thereby focusing resources on impactful initiatives.
The government has reiterated that all directions issued by the Chief Minister and the Council of Ministers, along with inputs from elected representatives during budget discussions, must be incorporated while finalizing annual plans.
Departments have been cautioned against creation of any liability arising from unapproved or unauthorized works, with controlling officers shall be held personally accountable for any such deviations.
In respect of multi-year Capex schemes, strict adherence to approved targets and budget ceilings has been mandated. Departments have also been directed to requisition 100 percent funds for physically completed works to ensure their financial closure, as well as for court-mandated payments where no legal remedy remains.
The Finance Department has assured that funds under Centrally Sponsored Schemes will be released within one day of receiving mother sanctions and visibility on the PFMS portal. Similarly, bills processed through Cyber Treasury will be pushed to PFMS within one day, with delays to be reported immediately.
Special emphasis has been laid on implementation of Budget Announcements and deliverables for 2026–27 on priority, with periodic reviews at the highest administrative level, including the Finance Department.
Pending Capex bills that could not be uploaded due to time constraints at the close of the previous financial year will be given first charge in the 2026–27 budget.
For key infrastructure departments such as Public Works (R&B), Jal Shakti, Forest, and Power Development, the second installment of funds will be released only upon full implementation of the Works Activity Monitoring System (WAMS), covering the entire project cycle from sanction to payment and monitoring.