Jammu, Feb 6: Chief Minister Omar Abdullah on Friday presented a Rs 1.37 lakh crore Budget for 2026-2027 in the Legislative Assembly, asserting that the financial plan aims to lay a strong foundation for sustainable growth, social harmony and economic prosperity in the Union Territory.
Presenting the Budget in the Legislative Assembly, Omar, who also holds the finance portfolio, estimated total gross receipts and expenditure at Rs 1,37,767 crore.
“For 2026-27, the total gross receipts are estimated at ₹1,27,767 Crore, including the provision for ways and means advances and over-draft of ₹14,000 Crore. Given these receipts, the total gross expenditure is estimated to be ₹1,27,767 Crore. The total net budget estimates for the fiscal 2026-27 are ₹1,13,767 Crore excluding the provision for ways and means advances and overdraft,” Omar said.
“This includes ₹80,640 Crore and ₹33,127 Crore under Revenue Expenditure & Capital Expenditure respectively under Budget Estimates 2026-27 and ₹90,018 Crore and ₹23,749 Crore as expected Revenue Receipt & Capital Receipt respectively under Budget Estimates 2026-27. The own revenues both tax and non-tax are estimated to be ₹31,800 Crore. In addition to this, ₹42,752 Crore is to flow as central assistance and ₹13,400 Crore as CSS to Jammu and Kashmir,” the CM said.
He said J&K’s economy is estimated to grow at 11 percent, driven by our sustained initiatives and strategic policy interventions. “This positive GSDP trajectory has supported Jammu & Kashmir to tackle the aggravated fiscal challenges after the Pahalgam tragedy and the recent floods. With confidence in our direction and faith in our collective strength, I am certain that Jammu and Kashmir will emerge as a leading region of development, innovation, and opportunity”.
“The persistent implementation of reforms and the strategic capital investments are accelerating our economy. Our Gross State Domestic Product (GSDP) is estimated to grow from ₹2,36,059 crore in 2023–24 to ₹2,62,458 crore for 2024–25 and is projected to rise to ₹2,88,422 Crore in 2025-26 signalling a decisive leap in our GSDP. In 2025-26, the primary, secondary, and tertiary sectors are projected to contribute 20%, 18%, and 62%to GSVA, respectively,” the CM said.
He said the fiscal deficit for 2025-26 was estimated at 2.98 per cent, substantially lower than 5.5 per cent in 2024-25 (RE).
However, he said the fiscal deficit for 2026-27 is estimated at 3.69 per cent, slightly higher than 3.63 per cent in 2025-26 (RE).
The CM said the Budget aims to sustain economic growth while maintaining fiscal discipline and strengthening development initiatives across Jammu and Kashmir.
Highlighting the resilience of the people, Omar said his government is committed to transforming Jammu and Kashmir into a progressive and economically vibrant region. “Together, we will turn obstacles into stepping stones and aspirations into achievements”.
The chief minister said the government is focused on creating a business-friendly ecosystem to attract investment and innovation.
“The Budget was prepared after wide consultations with elected representatives, industry leaders and stakeholders to ensure it remains people-centric”.
Referring to challenges faced during the past year, Omar said geopolitical factors, the Pahalgam terror attack and devastating floods in parts of Jammu region adversely impacted economic activity. “All sectors, including tourism, handicrafts, horticulture and agriculture were badly affected, leading to job losses and financial distress for families,” he said.
He said the Budget focuses on inclusive and sustainable growth through strategic investments in infrastructure, public services and governance.
Flagging fiscal constraints, the chief minister said own tax and non-tax revenues meet only about 25 per cent of the Union Territory’s budgetary requirements.
He said revenue collections stood at Rs 10,265 crore from taxes and Rs 4,964 crore from non-tax sources till December 31, 2025.
The chief minister said nearly 60 per cent of the overall expenditure is committed towards salaries, pensions and debt servicing, adding that the government is taking steps to manage debt and curb non-priority spending.
“We are strengthening debt sustainability by keeping borrowings within approved limits and improving liquidity management. For the third consecutive year, austerity measures have been enforced,” he said.
Omar said reforms in the power sector, including expansion of the consumer base and execution of loss reduction works, are being undertaken to ease financial stress.
He also acknowledged the Centre’s support in addressing fiscal challenges. “The central government has remained cognizant of our difficulties and consistently supported us through special assistance,” he said, adding that J&K has been brought under the Special Assistance to States for Capital Investment scheme.
The chief minister said funds under the scheme will be utilised for infrastructure development, hydroelectric projects and disaster mitigation works, particularly in flood-affected areas.
Omar announced a series of welfare and development measures to boost the economy, strengthen social sectors and promote sustainable growth in Jammu and Kashmir.
He announced full fee waivers for economically weaker students from Class 9 to college, six free LPG cylinders for eligible households, monthly support for orphan children, scholarships for tribal students and free government transport for persons with disabilities.
The Budget proposes crop insurance for apple, saffron, mango and litchi crops, expansion of storage facilities, promotion of micro and sprinkler irrigation, medicinal plant cultivation, livestock genetic improvement labs in every district and a push for ODF-Plus status in rural areas, he said.
In education and youth empowerment, the government proposed JK e-Pathshala DTH channels for Classes 1–12, modernisation of anganwadi centres, indoor sports facilities in government schools and priority hiring of local youth in subsidised industries.
Omar stated that the government is taking concrete steps to strengthen the foundation of the healthcare sector.
“This year, we are adding 548 medical seats to enhance educational capacity.”
The detailed allocation includes 340 new MBBS seats, 128 postgraduate seats, 34 postgraduate Ayurveda seats, and 46 Diplomate of National Board (DNB) seats.
In a parallel development aimed at boosting infrastructure, the Chief Minister confirmed that the All India Institute of Medical Sciences (AIIMS) in Kashmir will be operational by June 2026.
The CM said since J&K has witnessed a rise in incidence of cancer, the government will roll out a Cancer Control Strategy for J&K in collaboration with NITI Ayog and ICMR.
“The core focus of the strategy will be prevention, early diagnosis and better treatment of cancer patients through improved diagnostic equipment and treatment modalities,” he added.
“I propose to fast-track the recruitment process for 23,800 additional posts, including 2,800 gazetted, 14,000 non-gazetted and 7,000 Class- IV posts, so that these vacancies are filled in a strictly time-bound manner,” the CM said.
He also announced that an International Film Festival would be held in J&K in 2026-27 in association with the National Film Development Corporation. “The festival will bring world cinema to Jammu & Kashmir, promote cultural diversity and stimulate local economy.”
Meanwhile, diesel prices in Jammu and Kashmir will see a marginal increase following the government’s decision to reduce the rebate on High-Speed Diesel (HSD) by ₹2 per litre, a move aimed at strengthening revenue generation while safeguarding social welfare spending.
Announcing the measure during the Budget presentation, Omar said the government needs to explore every possible avenue to upscale revenues even as it enhances social protection for the poor.
He underlined the importance of fiscal discipline through austerity and efficiency measures, along with improving the impact of public expenditure by leveraging scale, competition and private initiative.
Omar said the reduction in HSD rebate would help rationalise diesel prices and encourage a gradual shift towards cleaner technologies.
He said despite the cut in rebate, diesel prices in Jammu and Kashmir would continue to remain lower than those in neighbouring states, including Punjab, Haryana, Himachal Pradesh and Delhi.
The move, he said, strikes a balance between fiscal consolidation and environmental responsibility, while keeping fuel prices competitive in the region.