Srinagar, May 23: The government on Saturday introduced a series of austerity measures for the financial year 2026-27 aimed at ensuring fiscal discipline, reducing non-essential expenditure and promoting digital governance across departments.

According to a government order issued by the Finance Department, all departments and government institutions have been directed to strictly rationalize expenditure with immediate effect.
The order imposes restrictions on conferences, seminars, official travel, purchase of vehicles, hiring of office spaces and hospitality functions.
Under the new guidelines, government departments have been asked to avoid organizing seminars, workshops and conferences unless absolutely necessary and to prioritize virtual meetings wherever possible.
The government has also imposed a complete ban on holding official meetings and conferences in private hotels and commercial venues, directing departments to use government buildings and conference halls instead.
The order states that expenditure on ceremonial functions, excessive publicity, souvenir printing and promotional material must be minimized.
In a major cost-cutting measure, the Finance Department has discouraged the purchase of new government vehicles. Replacement vehicles will only be allowed in exceptional cases with prior approval and subject to a 20 percent reduction in fleet strength.
The departments have also been instructed to auction condemned vehicles before seeking replacements.
The government has additionally tightened rules related to official travel.
International travel by officials will not be permitted without specific approval from the Finance Department, while all domestic air travel must be undertaken in economy class irrespective of entitlement.
The order also directs departments to maximize the use of video conferencing and digital communication platforms to reduce travel expenditure.
As part of energy conservation measures, departments have been instructed to avoid unnecessary use of official vehicles, air-conditioning systems, generators and lighting equipment.
The Finance Department has also imposed a complete ban on official dinners, lunches and receptions except those hosted by the Lieutenant Governor and Chief Minister.
The order states that no new posts will be created during the current fiscal year and vacant posts lying unused for more than two years may be surrendered unless exceptional circumstances exist.
It also restricts fresh consultancy engagements, outsourcing arrangements and creation of new Project Management Units without prior approval.
To promote e-governance, departments have been directed to adopt a “digital-first” approach by minimizing physical file movement, printing of bulky documents and paper consumption through increased use of e-Office systems and virtual communication platforms.
The government has further barred release of funds for non-priority works under the Capex Budget, including renovation and upgradation of residential quarters and office buildings, unless specifically approved by the Finance Department.
The order said administrative secretaries and financial advisors will be personally responsible for ensuring strict compliance with the austerity guidelines.
The austerity measures have been introduced amid growing focus on fiscal prudence and efficient utilization of government resources in the Union Territory.