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Jammu and Kashmir yet to regularise INR 1.24 lakh crore excess spending flagged by CAG

#Law & Policy#India
Last Updated : 9th Apr, 2026
Synopsis

The Comptroller and Auditor General of India has highlighted that excess expenditure of over INR 1.24 lakh crore incurred by the Jammu and Kashmir government over four decades remains unapproved by the legislature. The report pointed to delays in scrutiny by the Public Accounts Committee and warned that such prolonged irregularities weaken financial discipline. The government has termed the issue a legacy matter and indicated that it will be addressed through legislative approval. The findings underline persistent gaps in budgetary control and oversight mechanisms in the Union Territory's financial management.

The Comptroller and Auditor General of India has raised concerns over the non-regularisation of excess expenditure amounting to more than INR 1.24 lakh crore incurred by the Jammu and Kashmir government over a period spanning four decades. The observations were made in its report on the Union Territory's finances for the year ended March 2024.


The audit noted that this expenditure, incurred between 1980 and 2020, is yet to receive legislative approval, which is mandatory when spending exceeds the budgeted allocation. The absence of such approval has been linked to delays in review by the Public Accounts Committee, which has not examined the appropriation accounts from 1980-81 onwards.

The report indicated that excess expenditure totalling INR 1,24,004.41 crore for the period between 1980-81 and 2019-20 remains pending for regularisation. This includes spending incurred until the reorganisation of the erstwhile state, when Jammu and Kashmir and Ladakh were carved into separate Union Territories in October 2019.

It further pointed out that the issue has persisted across 543 grants and appropriations over the years. Significant overruns were observed during the late 1990s and early 2000s, including INR 12,954.06 crore in 2005-06 and INR 9,770.53 crore in 2003-04. Even in the final year before reorganisation, excess expenditure of INR 5,311.53 crore was recorded for 2019-20 (April to October 2019).

The auditor cautioned that continued delays in regularising such expenditure weaken the framework of financial control and may encourage irregular spending practices. It also emphasised that the prolonged absence of legislative scrutiny affects transparency and accountability in public resource management.

In response, the Finance Department of the Jammu and Kashmir government informed that the pending excess expenditure is being treated as a legacy issue and would be placed before the legislature for approval.

Historically, similar observations have been raised in past audit reports, indicating that delays in financial oversight have been a recurring issue in the region. The latest findings reinforce concerns around the effectiveness of institutional mechanisms responsible for ensuring fiscal discipline.

Source PTI

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