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Capital spending slows in J&K | KNO

UT’s liabilities pegged at Rs 6500 crore; own revenue generation reaches Rs 10984 crore in first two quarters: Finance Minister

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Srinagar, Oct 28 (KNO): The Jammu & Kashmir Government on Tuesday revealed that capital expenditure in the first two quarters of the ongoing financial year was lower compared to the corresponding period of the previous year. In a written reply to a question submitted by MLA Handwara, Sajad Gani Lone, as per news agency Kashmir News Observer (KNO), the Minister in-charge of Finance informed that capital expenditure during the first two quarters of 2025–26 stood at Rs 2574 crore, as against Rs 4,156 crore during the same period in 2024–25. As per the quarter-wise break-up, capital expenditure in the first quarter of 2025–26 was only Rs 280.73 crore and Rs 2,293 crore in the second quarter. In 2024–25, capital expenditure stood at Rs 2,234 crore in the first quarter and Rs 1,922 crore in the second quarter. The Minister, however, stated that capital expenditure was higher in the previous financial year due to the clearance of undischarged liabilities amounting to Rs 1,300 crore on account of works and procurements at the end of 2023–24. “Capital expenditure in the first quarter of 2024–25 was on the higher side as the government cleared all such undischarged liabilities of 2023–24,”the minister said. The Minister informed that total liability of UT as on date is Rs 6500.65 crore which pertains to GP fund gratuity and other financial liabilities. The Minister said the total own revenue generation up to the second quarter of the current financial year is Rs 10,984 crore. “As on 30th September, 2025, the tax revenue receipts of the Union Territory stand at Rs 6777 crore, while the non-tax revenue receipts amount to Rs 4207 crore. Thus, the total own revenue generation up to the second quarter of the current financial year is Rs 10984 crore,” the minister said. The minister said the fiscal position of J&K remains stable. “The fiscal position of the Union Territory of Jammu & Kashmir remains stable and within the prescribed fiscal parameters,” the minister said. The minister also informed that the overall liquidity position of the Union Territory is comfortable. “The timely release of central grants, coupled with steady growth in own revenues and prudent cash and expenditure management by the Finance Department, has ensured that there are no liquidity constraints affecting either developmental or committed expenditures,” the minister said. He said the Government continues to make concerted efforts to strengthen the fiscal position by enhancing revenue mobilization, improving tax compliance, rationalizing user charges, and maintaining fiscal discipline across all spending departments—(KNO)

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