Chief Minister Omar Abdullah on Friday presented the first budget of Jammu and Kashmir in seven years and announced an allocation of 1.12 lakh crore for 2025-26, terming it as a roadmap for economic growth and a true reflection of people’s aspirations.
He said J&K is at the threshold of a new era of peace and prosperity, with a semblance of normalcy returning after over three-and-a-half decades of turmoil.
Presenting the budget in the legislative assembly here, Abdullah, who also holds the finance portfolio, praised Prime Minister Narendra Modi, Union Home Minister Amit Shah and Union Finance Minister Nirmala Sitaraman for their support in various sectors.
Omar started his over one-and-half-hour speech in English, with the Persian couplet, “Tan Hama Daag Daag Shud – Punmba Kuja Kuja Neham…” (my entire body is covered with bruises where should I apply the balm), amid thumping of benches by his party legislators.
He said the improved environment is contributing to economic progress, with J&K’s economy expanding from Rs 1,64,103 crore in 2019-20 to Rs 2,45,022 crore in 2023-24.
“In 2024-25, the primary, secondary, and tertiary sectors are projected to contribute 20 per cent, 18.30 per cent, and 61.70 per cent to GSVA (Gross State Value Added), respectively. It is a testament to the strong foundations laid by the leadership of J&K that despite its geographical challenges and the multi-decade turmoil, the socio-economic indicators continue to remain robust,” he said.
Abdullah expressed confidence that J&K will emerge as a leading region in development, playing a vital role in the vision of a developed India by 2047.
“The total net budget estimates for fiscal 2025-26 are Rs 1,12,310 crore, excluding provisions for ways and means advances and overdrafts,” Omar said.
With a focus on a zero-deficit budget, he said: “The expected revenue receipts are Rs 97,982 crore and capital receipts are Rs 14,328 crore. Similarly, revenue expenditure is estimated to be Rs 79,703 crore and capital expenditure Rs 32,607 crore.”
Detailing the estimates, he said gross receipts are estimated at Rs 1,40,309.99 crore, including provisions for an overdraft of Rs 28,000 crore.
“Given these receipts, total gross expenditure is estimated to be Rs 1,40,309.99 crore,” he added.
Abdullah highlighted that the Union Territory’s own revenues, both tax and non-tax, are estimated at Rs 31,905 crore.
“Additionally, Rs 41,000 crore is expected as central assistance and Rs 13,522 crore as CSS and PMDP for the Union Territory of Jammu and Kashmir,” he said.
Revealing fiscal indicators, he projected the tax-GDP ratio at 7.5 per cent for 2025-26.
The budget has estimated the fiscal deficit for 2025-26 it to be at 3.0 per cent of the Union Territory’s GDP.
“This is substantially lower than the 5.5 per cent in 2024-25 (RE),” he added.
The GDP for 2025-26 is projected at Rs 2,884,22 crore, reflecting a growth of 9.5 per cent over the previous year, he added.
The chief minister said the budget for J&K Police, which was around 11 per cent of total allocation, has been migrated to the ministry of home affairs’ budget from 2024-25 onward.
“In addition to this, J&K will receive an extra Rs 5,000 crore in grants for 2024-25 and 2025-26. I sincerely thank the prime minister, home minister, and finance minister for their unwavering support in strengthening J&K’s fiscal health and realising its vision for growth and prosperity,” he said.
This is the first budget of the National Conference led government after it came to power in October last year, ending six years of central rule.
The last budget session took place in 2018 under the then PDP-BJP government in the erstwhile state of J&K, which was accorded the status of Union Territory after Ladakh was carved out as a separate UT following the abrogation of Article 370 on August 5, 2019.
The CM proposed a free ration of 10 kilogram per person to all AAY beneficiaries from April 1, 2025, enhancement of pension to vulnerable sections of the society including old-aged persons, widows, divorcees and specially–abled persons.
The pension has been revised to Rs 1250 crore for persons below 60 years of age while Rs 1500 crore for persons aged between 60 and below 80 years and Rs 2000 for persons aged 80 years and above.
He announced enhancement of financial assistance under the marriage assistance scheme from Rs 50000 to Rs 75000 for AAY category girls and from April 1, 2025, all women will be granted free ridership on government-owned public transport buses, including e-buses.
The Chief Minister also proposed 200 units of free electricity per month to all AAY families in Jammu and Kashmir. “Integrated with the PM Surya Ghar Bijli Yojana, this initiative will enable installation of grid-connected solar systems, generating the required power and eliminating electricity bills.”
He said that Rs 750 crore will be invested in this scheme and it would reduce AT&C losses and promote sustainable energy.
He also announced reducing the stamp duty on property gifted to blood relatives to zero and further announced the setting up of national law universities and Jammu and Kashmir skill and entrepreneurship universities.