JAMMU: Jammu and Kashmir Chief Minister Omar Abdullah on Friday unveiled a balanced budget in the Legislative Assembly, proposing an outlay of ₹1.12 lakh crore for 2025-26, with a sharp focus on holistic development and inclusive growth.
Presenting his first budget as Finance Minister, Abdullah emphasized economic expansion, social progress, and sustainable development, setting the tone for J&K’s financial roadmap after a gap of seven years.
J&K’s First Full Budget Since 2018
Jammu and Kashmir, which became a Union Territory following the reorganization of the erstwhile state in 2019, has witnessed its first full-fledged budget since 2018, when the last elected government presented the annual financial document before the abrogation of Article 370.
Opening his speech with a Persian verse, Abdullah addressed the house amidst thunderous applause, stating:
“I stand before you today to present my first budget as Finance Minister, a responsibility I deeply recognize. This marks the first financial plan of a collective government in seven years, and I am fully aware of the weight of this moment.”
He described the budget as a blueprint for a progressive and resilient Jammu and Kashmir, aiming to bridge economic disparities, empower youth and women, and boost investment opportunities.
Key Budgetary Allocations
- Total Budget Estimate: ₹1,12,310 crore (excluding provisions for advances and overdrafts).
- Projected Revenue Receipts: ₹97,982 crore.
- Capital Receipts: ₹14,328 crore.
- Revenue Expenditure: ₹79,703 crore.
- Capital Expenditure: ₹32,607 crore.
- Overall Receipts: ₹1,40,309.99 crore (including ₹28,000 crore overdraft provisions).
- Total Gross Expenditure: ₹1,40,309.99 crore.
The Chief Minister highlighted that J&K’s own tax and non-tax revenue is expected to be ₹31,905 crore, with an additional ₹41,000 crore from central assistance and ₹13,522 crore under Centrally Sponsored Schemes (CSS) and the PMDP.
Fiscal Outlook and Growth Projections
- Tax-to-GDP Ratio: 7.5% for 2025-26.
- Fiscal Deficit: 3.0% of J&K’s GDP (significantly lower than 5.5% in 2024-25).
- GDP Projection for 2025-26: ₹2,88,422 crore, reflecting a 9.5% growth over the previous year.
Abdullah underscored that the budget is designed to prioritize fiscal discipline, infrastructure expansion, agricultural modernization, industrial growth, healthcare advancements, educational reforms, and digital transformation.
“We are committed to fostering a business-friendly atmosphere, creating employment opportunities, and strengthening investment in innovation,” he stated.
People-Centric Governance
The Chief Minister emphasized that the budget was crafted after consultations with elected representatives, industry leaders, and key stakeholders, ensuring it aligns with public aspirations and economic realities.
“This government has set new benchmarks for participatory governance, directly involving every member of the house in the budget planning process,” Abdullah said.
J&K on the Path to Stability and Growth
Abdullah expressed optimism about J&K entering an era of stability and economic resurgence, highlighting significant economic progress despite decades of turbulence.
- J&K’s economy expanded from ₹1,64,103 crore in 2019-20 to ₹2,45,022 crore in 2023-24.
- Sectoral Contribution in 2024-25:
- Primary Sector: 20%
- Secondary Sector: 18.3%
- Tertiary Sector: 61.7%
“J&K has demonstrated remarkable resilience despite geographical and political challenges. Our economic indicators remain robust, and we are determined to position J&K as a key driver of India’s growth by 2047,” he concluded.
