J&K Government Releases New Guidelines for MLA Constituency Development Fund (CDF) Scheme

By JV Team

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To streamline the efficient allocation and utilization of funds under the Constituency Development Fund (CDF) Scheme, the Government of Jammu and Kashmir has introduced revised guidelines following approval from the Council of Ministers on March 3, 2025. The updated framework aims to enhance transparency, accountability, and efficiency in implementing development projects across constituencies.

Increased Fund Allocation for Development Works

Under the revised CDF guidelines, each Member of the Legislative Assembly (MLA) is entitled to recommend developmental works worth Rs 3 crore annually within their constituency. These funds will be dedicated to the creation of durable community assets in critical sectors such as:

  • Drinking water supply
  • Road infrastructure
  • Education and public health facilities
  • Sanitation and hygiene initiatives
  • Power distribution networks
  • Tourism infrastructure

Additionally, nominated MLAs can also propose development projects in any region across the Union Territory of Jammu & Kashmir.

Guidelines for Eligible Projects

The CDF funds are strictly reserved for developmental projects that cater to local needs. The revised rules prohibit expenditure on revenue-related expenses such as salaries, land acquisition, or administrative costs. Furthermore, all sanctioned projects must be completed within one year, with an exception for difficult terrains where the completion timeline may extend to two years, subject to approval from the District Development Commissioner (DDC).

Funding Limits and Special Provisions

  • The maximum expenditure on any single project is capped at Rs 10 lakh, except in cases where a higher amount is justified and approved.
  • The approved project categories include:
    • Educational infrastructure (schools, libraries, skill development centers)
    • Healthcare facilities (hospitals, dispensaries, diagnostic centers)
    • Sports and recreational spaces
    • Public utilities (street lighting, drinking water facilities, sanitation projects)
    • Power infrastructure upgrades
    • Aid for old age homes, orphanages, and youth sports organizations
  • In the event of natural calamities (floods, earthquakes, droughts), MLAs from non-affected areas can recommend relief works worth up to Rs 10 lakh in affected regions.
  • Additionally, MLAs can allocate up to Rs 20 lakh annually for housing assistance to tribal and BPL populations.

The list of approved projects is not exhaustive, and MLAs can propose additional projects, provided they align with CDF guidelines and objectives.

Streamlined Approval and Execution Process

The new guidelines simplify the process of project recommendation, approval, and execution:

  • MLAs must submit proposals on official letterhead.
  • The District Development Commissioner (DDC) must process approvals within 45 days.
  • Execution will be carried out by designated implementing agencies such as:
    • Public Works Department (PWD)
    • Rural Development Department
    • Other relevant government bodies
  • The DDC will oversee the coordination and supervision of projects at the district level.

Mandatory Compliance and Fund Utilization

All projects must adhere to the General Financial Rules (GFR) 2017 and undergo mandatory financial and technical scrutiny. Additional funding regulations include:

  • MLAs must submit project recommendations within 90 days from the start of the financial year.
  • At least 80% of allocated funds must be utilized within the same financial year.
  • Failure to utilize funds may result in suspension of future allocations until compliance is achieved.
  • The Finance Department will release the full Rs 3 crore allocation at the start of the financial year, and any unspent amount will be carried forward.

Transparency and Accountability Measures

To prevent misuse of funds and ensure public accountability, the guidelines emphasize strict transparency measures:

  • All contracts must be awarded through open bidding to ensure fairness.
  • Statutory clearances must be obtained before the commencement of any project.
  • Small projects costing less than Rs 1 lakh are restricted to a total of Rs 10 lakh annually.
  • Public signboards acknowledging CDF funding must be placed at project sites.
  • All projects will be monitored through:
    • Field inspections by the DDC
    • Quarterly progress reports
    • Financial audits

Under the Right to Information (RTI) Act, 2010, citizens can request details of projects sanctioned and executed under the CDF to ensure public oversight.

Prohibited Uses of CDF Funds

The guidelines explicitly prohibit the use of CDF allocations for:

  • Construction of government or private office buildings
  • Religious structures, memorials, or places of worship
  • Commercial projects
  • Payment of salaries or administrative expenses
  • Land acquisition or any revenue-related expenditure

Ensuring Sustainable Development Across J&K

By focusing on high-impact, community-driven development projects, the revised CDF guidelines aim to ensure that public funds are utilized efficiently. The Jammu & Kashmir Government is committed to enhancing transparency, preventing fund mismanagement, and promoting equitable growth across all constituencies.

Click here to read official Notification for Guidelines on Constituency Development Fund CDF Scheme.

The implementation of these new rules will significantly contribute to the socioeconomic upliftment of local communities, ensuring that essential infrastructure and public services reach every corner of the Union Territory.

JV Team

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