₹1.12-lakh-crore J&K budget’s focus on key sectors, growth
200 units of free electricity per month and 10-kg free ration per person for families under Antyodaya Anna Yojana from April 1; special thrust on infrastructure, agriculture, industry, healthcare, education, says Omar
Chief minister Omar Abdullah on Friday presented a zero-deficit budget in the Jammu and Kashmir legislative assembly, announcing an outlay of ₹1.12 lakh crore for the fiscal year 2025-2026 with focus on key sectors, including industry, health, education, digital governance and tourism.
In his 1.36-hour speech, the chief minister, who also holds the finance portfolio, also emphasised upon youth, food security, sports, power and women empowerment through a slew of welfare and development measures.
It was the first J&K budget in seven years since 2018 when the erstwhile PDP-BJP government tabled the then state’s document of annual finances. Omar, who began with his speech with a Persian couplet — My entire body is covered with bruises, where should I apply the balm, described his budgetary proposals as a roadmap for economic growth and a true reflection of people’s aspirations.
He heaped praise on Prime Minister Narendra Modi, Union home minister Amit Shah and finance minister Nirmala Sitharaman for their support in various sectors to bring J&K’s economy back on rails. “The net budget estimate for fiscal 2025-26 is ₹1,12,310 crore, excluding provisions for ways and means advances and overdrafts,” Abdullah said. With a focus on a zero-deficit budget, he said, “The expected revenue receipts are ₹97,982 crore and capital receipts are ₹14,328 crore. Similarly, revenue expenditure is estimated to be ₹79,703 crore and capital expenditure ₹32,607 crore.”
He said gross receipts are estimated at ₹1,40,309.99 crore, including provisions for an overdraft of ₹28,000 crore. He informed the house that the Union Territory’s own revenues, both tax and non-tax, were estimated at ₹31,905 crore. “Additionally, ₹41,000 crore is expected as central assistance and ₹13,522 crore as centrally sponsored schemes (CSS) and Prime Minister’s Development Package (PMDP) for J&K,” he said. He projected the tax-GDP ratio at 7.5% for 2025-26.
“The budget has estimated the fiscal deficit for 2025-26 financial year at 3% of the Union Territory’s GDP, which is substantially lower than the 5.5% in 2024-25,” he said. The GDP for 2025-26 was projected at ₹2,88,422 crore. “It reflected a growth of 9.5% over the previous year,” he said.
The CM emphasised that the budget accorded priority to inclusive growth, fiscal prudence and strategic investments in infrastructure, agriculture, industry, healthcare, education and other key sectors. “J&K is on 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. This improved environment contributes to economic progress with J&K’s economy expanding from ₹1,64,103 crore in 2019-20 to ₹2,45,022 crore in 2023-24. In 2024-25, the primary, secondary and tertiary sectors are projected to contribute 20%, 18.3% and 61.7% to GSVA (Gross State Value Added), respectively,” he said.
Omar said his government intended to provide 200 units of free electricity to the families under Antyodaya Anna Yojana (AAY), one of the poll promises of the National Conference last year.
He also informed the house that under the marriage assistance scheme, he intended to hike the assistance amount to ₹75,000 from ₹50,000 per girl from the poor families. He also proposed zero stamp duty on property gifted among blood relations. The CM also proposed ₹50 crore for setting up a national law university in J&K.
For the socio-economic empowerment of the women, Omar said that his government will set up five new Sakhi Niwas for the working women and girl students in J&K. He also said his government would provide free ride to women in government transport, including e-buses from April 1.
“Under Lakhpati Didi scheme, the government will provide assistance to 40,000 women,” he said.
The CM also announced to provide 10-kg free ration per person to AAY beneficiaries from April 1. He also allocated ₹815 crore to agriculture, ₹390 crore to tourism development and ₹50 crore for the new enterpreneurs.