Jammu and Kashmir Government Settles Over ₹18,000 Crore Liabilities in FY26

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SRINAGAR: The Jammu and Kashmir government has reported that financial liabilities, including payments to contractors and retired employees, are being processed and settled regularly. Over ₹18,000 crore was disbursed during the financial year 2025-26, according to official statements.

Assembly Question Response Highlights Financial Clearance

In response to a Starred Assembly Question submitted by MLA Sham Lal Sharma, the Finance Department stated that bills submitted at treasuries are routinely processed and cleared. The department affirmed that no long-pending liabilities are being permitted to accumulate within the system.

Official figures indicate that a total of ₹7,800.58 crore was paid to contractors during the current financial year up to March 27, 2026. Payments to retired employees have also been made at consistent intervals. These include ₹2,864.14 crore for gratuity, ₹1,123.22 crore for commutation of pension, and ₹773.58 crore for leave salary entitlements.

Additionally, ₹5,821.43 crore has been disbursed under General Provident Fund (GPF) withdrawals, with these payments processed up to December 2025.

Payment Allocation and Systemic Backlog

The Finance Department clarified that fund allocations are made based on specific expenditure heads, not on a divisional basis. Consequently, payments processed through treasuries are accounted for according to these heads, rendering division-specific liability assessments inapplicable under the current financial framework.

Addressing concerns regarding increasing liabilities, particularly for contractors and retired officials, the government asserted that payments are released at regular intervals. It stated that there is no systemic backlog of payments, reiterating that the existing system ensures the periodic clearance of all dues. The government did not indicate the establishment of any separate time-bound mechanism for these clearances.

This statement arrives amidst ongoing discussions and concerns within administrative circles and among contractors regarding the timely settlement of payments. The government has maintained that treasury-based clearances are proceeding in a structured and continuous manner.

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