The Jammu and Kashmir Budget for the fiscal year 2025-26, presented by Chief Minister Omar Abdullah, lays out an ambitious roadmap for economic growth, social

development, and infrastructure enhancement. With a focus on key sectors such as agriculture, tourism, healthcare, and education, the budget aims to drive progress in the region. However, certain fiscal concerns and execution challenges remain. Amidst the praise and criticism, there is a prevailing hope for economic growth and stability in the region

Words of Gratitude

The budget has been well-received in several key areas, particularly in agriculture and tourism, two of J&K’s most vital economic sectors. The allocation of ₹815 crore for agriculture has been applauded, as it aims to boost employment and enhance productivity through the promotion of a two-crop pattern and horticulture expansion. With approximately 288,000 jobs expected to be generated, this initiative offers a much-needed economic boost to farmers. Given J&K’s agrarian background, this investment is crucial for ensuring sustainable development in rural areas. Similarly, the ₹390.20 crore allocation for tourism development has been widely welcomed.
Tourism is a major economic driver in J&K, and with the government expecting 23.6 million tourists by 2024, this investment is crucial. Plans include increasing homestay accommodations, promoting water sports, and developing Sonamarg as a winter sports hub. Jammu will also witness a new water park in Sidhra, while Basholi will be transformed into an adventure tourism destination. These initiatives are expected to further elevate J&K as a premier tourist attraction in India. A major push is being given to infrastructure, including the construction of 500 Panchayat Ghars to strengthen local governance. Investments in rural electrification, road connectivity, and drinking water projects will improve the quality of life. The Srinagar and Jammu Smart
City projects continue to receive significant allocations, aiming to modernize urban centers. The government plans to boost the leather tanning industry, with the potential to add ₹100 crore to the economy. Simplified business processes and industrial incentives are expected
to attract private investment, while traditional handicrafts like Pashmina and Papier-mâché will receive further promotion. A significant investment in the healthcare sector includes 30-bedded Emergency Medicine Departments in all Government Medical Colleges (GMCs) and the construction of a Homeopathy Medical College and Associated Hospital in Kathua at ₹52 crore. Nursing colleges will also receive new infrastructure, and Ayushman Bharat health insurance continues to cover underprivileged families. The budget supports the upgradation of 40 higher secondary schools into integrated K-12 institutions and encourages digital education and vocational training. Scholarships and financial aid for students from economically weaker sections remain a priority. Key welfare initiatives include
200 units of free electricity and 10 kg of free ration per person per month for Antyodaya Anna Yojana (AAY) households. The Marriage Assistance Scheme has been increased from ₹50,000 to ₹75,000, while free public transport for women is another notable initiative. A major highlight of the budget is the effort to reduce the fiscal deficit from 5.5% in 2024-25 to 3.0% in 2025-26. Revenue generation through tourism, industry, and agriculture is expected to lessen dependence on central assistance and borrowing.

Voices of Criticism

While the budget does address several critical areas, it has also faced its fair share of criticism. It’s argued that a greater share of the budget should have been directed toward infrastructure development, job creation, and economic revival, particularly in sectors affected by recent economic downturns. Additionally, there are questions whether the budget adequately addresses unemployment, which remains one of J&K’s biggest challenges. While the government has promised job
creation through various projects, It’s argued that long-term employment opportunities in sectors like manufacturing and IT are still lacking.

Fuel Price Hikes and Increased Taxation

The budget has reduced fuel rebates, leading to higher petrol and diesel prices, which may affect transportation and living costs. An increase in aviation fuel tax could also make air travel and logistics more expensive.

New Levies on Vehicles

A new tax has been imposed on non-transport vehicles purchased outside J&K, alongside higher vehicle registration charges, which could discourage purchases and impact transportation services.

Rising Public Debt and Fiscal Management
J&K’s debt-to-GSDP ratio has risen to 52%, raising concerns over long-term financial stability. Continued reliance on central grants and borrowing may pose fiscal risks.

Implementation and Governance Challenges

Despite ambitious plans, past delays in infrastructure projects highlight execution challenges. Effective governance, transparency, and strict monitoring mechanisms are necessary to ensure the timely completion of planned
initiatives.

Limited Focus on Youth Employment

Although the budget promotes agriculture and industry, specific employment schemes for urban youth are lacking. The absence of dedicated startup incentives and employment guarantee schemes may not sufficiently address the rising unemployment rate and needs to be considered.

Questions?

Beyond criticism, several questions have been raised about the budget’s priorities and implementation. One of the most significant concerns is the ₹9,325.73 crore allocated to the Jammu and Kashmir Police, which covers both operational expenses and infrastructure development. While security remains a priority, some wonder whether such a large budget for policing is justified when other sectors, such as education and healthcare, also require urgent attention. Another area of concern is the effectiveness of budget implementation. In previous years, delays in fund utilization and bureaucratic inefficiencies have hindered progress. Citizens are
asking whether the announced projects will be executed on time and in a transparent manner. Will these investments translate into tangible improvements in people’s lives, or will they get entangled in red tape?

Hopes

Despite the mixed reactions, there remains a sense of hope and optimism. The announcement of a new hydropower policy focusing on energy growth and improved transmission and distribution is a promising step toward sustainable development. If implemented effectively, this could make J&K more energy self-sufficient and reduce its dependence on external power sources. Furthermore, the initiative to invite filmmakers from South India to shoot in J&K could
provide a significant boost to the tourism and entertainment industries. By leveraging its breathtaking landscapes, J&K has the potential to become a major film tourism destination, attracting both domestic and international visitors. The people of J&K also hope that the budget will lead to real improvements in daily life,
including better road connectivity, improved healthcare facilities, quality education, and greater job opportunities. While some allocations may seem ambitious, the true impact of the budget will depend on its execution.

Conclusion

The Jammu and Kashmir Budget 2025-26 presents a comprehensive approach to economic growth, but it is not without its shortcomings. While it prioritizes agriculture and tourism, concerns about development funding, unemployment, and budgetary allocations for policing persist. Questions about implementation efficiency and governance remain central to public discourse.
Nonetheless, there is a collective aspiration that the budget will bring about meaningful change and foster long-term prosperity. While it promises significant development, challenges related to fuel prices, taxation, debt management, and employment generation need careful attention. The government now faces the critical task of ensuring that the promises made in this budget translate into visible progress for the people of J&K. Only time will tell whether this budget will meet expectations or fall short of its ambitious vision. If implemented effectively, the budget has the potential to transform J&K into an economically vibrant and socially inclusive region.

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