CM Omar Reviews CAPEX, Directs Departments to Speed Up Spending and Fully Utilise Funds

Srinagar, Jul 28: Chief Minister Omar Abdullah on Tuesday directed all government departments to significantly accelerate Capital Expenditure (CAPEX) during the current financial year, stressing that timely utilisation of funds is essential for infrastructure development, improved public services and sustained economic growth. Chairing a high-level review meeting at the Civil Secretariat, the Chief Minister expressed concern over slow expenditure by several departments and warned against the practice of delaying spending until the final months of the financial year. “To have money and not spend it is incompetence. Not having money is easier to explain, but it is impossible to justify when funds are available and remain unutilised,” Omar Abdullah said. He noted that the review was being conducted early in the financial year to enable timely corrective measures and ensure departments make full use of the remaining working season in both Kashmir and Jammu. The meeting was attended by Ministers Sakina Itoo, Javed Ahmed Rana, Javid Ahmed Dar and Satish Sharma, along with Chief Secretary Atal Dulloo, senior administrative secretaries, heads of departments and finance officials. Officers stationed outside Srinagar joined the meeting through video conferencing. Reviewing progress under the Special Assistance to States for Capital Investment (SASCI) scheme, the Chief Minister instructed departments to ensure complete utilisation of allocated funds, warning that any unspent amount could reduce Jammu and Kashmir’s allocation in the next financial year. He asked departments to immediately identify eligible projects under SASCI Part-I and directed ministers to review reform-linked targets every fortnight to help the Union Territory secure additional financial assistance. The Chief Minister also instructed departments to begin work on projects where administrative approvals and tendering have already been completed, with the option of initially funding them through the CAPEX budget before shifting them to the reform-linked SASCI component once additional funds become available. Highlighting the need for better project planning, Omar Abdullah asked departments to prepare a strong pipeline of development works for the 2027-28 financial year instead of waiting for funds before identifying projects. He also advised departments to incorporate viable proposals submitted by MLAs during Budget consultations, particularly projects exceeding ₹2 crore, for future SASCI funding. Emphasising efficient utilisation of funds under Centrally Sponsored Schemes, the Chief Minister directed departments to closely monitor expenditure and complete projects within stipulated timelines. He also asked the concerned departments to simplify and streamline the tendering process while ensuring transparency and accountability. Earlier, Additional Chief Secretary, Finance, Shailendra Kumar, gave a detailed presentation on the CAPEX position for 2026-27, highlighting expenditure under the UT sector, District CAPEX and Centrally Sponsored Schemes, besides identifying departments where spending remained below expected levels.