Srinagar: The Jammu and Kashmir government, underlining its commitment to create employment opportunities, has rolled out a detailed austerity policy that imposes strict restrictions on new employment opportunities and fiscal spending.

As per Government Order No. 16-F of 2025 issued today, the management has clearly stated that no new posts will be created. Regular vacancies are to be filled exclusively by the Jammu and Kashmir Services Selection Board (JKSSB) or the Jammu and Kashmir Public Service Commission (JKPSC) and only with the concurrence of the Finance Department. Posts lying vacant for more than two years shall be vacated and shall not be revived except in rare and unavoidable circumstances, subject to the approval of the Finance Department.

The order issued by the Finance Department also specifies expenditure management measures for the financial year 2024-25. These include limiting revenue expenditure to 30 per cent of the budget allocation during the last quarter and limiting expenditure to 15 per cent in March. Payments in the last month are only allowed for completed works or goods and services already purchased, with advance payments mostly prohibited.

The austerity measures spanned various sectors, with a 10 per cent cut in the budget for office expenses, holiday travel allowances, telephone charges, fuel, advertising, hospitality and publicity. Seminars and conferences should be held only when necessary, with events outside Jammu and Kashmir strongly discouraged. Meetings and conferences in private hotels are banned, instead government venues must be used.

The policy also regulates the purchase of vehicles, permitted only in case of operational requirements, which are reduced by 20 percent of the cost of condemned vehicles. Any such purchase should be approved by the Finance Department and the proceeds from the auction of old vehicles should be deposited as miscellaneous revenue.

Travel expenses are similarly limited, with international travel requiring specific authorization and domestic travel limited to economy class, regardless of passenger privilege. Departments are encouraged to use video conferencing to avoid travel for meetings, and overall travel budgets are cut by 10 percent.

The purchase of furniture is prohibited except for newly established offices, and old furniture must be auctioned. Official dinners and lunches are prohibited unless hosted by or with the express approval of the Lieutenant Governor or the Chief Minister.

The government has also directed all departments to strictly follow the General Financial Rules, Central Vigilance Commission guidelines and directives regarding e-tendering and GEM-based procurement. Non-priority works such as repair and renovation of residential and office buildings will be deferred, no new financial commitments are allowed for activities included in the approved budget.

Austerity measures are aimed at improving the allocation of resources to priority projects while maintaining fiscal discipline. Administrative Secretaries are tasked with ensuring compliance, assisted by the Director of Finance, who will also report to the Finance Department.