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Budget allocation for J&K peanuts, says Congress; LG says will spur growth
J&K Congress president Tariq Karra says the budget allocation is a nominal increase than the previous one; Instead of a 10% natural step-up every year, J&K has got only a 4.72% nominal rise which barely keeps pace with inflation, he says
The budget allocation had a mixed response in J&K with Opposition criticising it as more security and administration oriented than development while the BJP hailed it for being aimed at the UT’s stability and inclusive growth. The Congress termed it peanuts.
Lieutenant governor Manoj Sinha termed the Budget 2026-27 as pragmatic, saying it will prioritise economic acceleration, create future-ready infrastructure, sustain growth momentum and chart path to $5 trillion economy milestone within a few years. He said the initiative would generate fresh employment opportunities and invigorate the tourism industry besides adopting a comprehensive fiscal strategy that would balance growth ambition and social welfare.
“The budget emphasises accelerating economic expansion, strengthening infrastructure, advancing manufacturing capabilities across seven strategic sectors, while maintaining a steadfast commitment to welfare. It will have a transformative impact in burgeoning industries, renewed momentum for semiconductor advancement through India Semiconductor Mission (ISM) 2.0, and a substantial stride toward diminishing India’s reliance on other countries for rare earth elements with specialised rare earth zones,” the L-G said.
However, J&K minister Satish Sharma criticised the quantum of allocation, saying that it was “peanuts” and insufficient to meet its developmental requirements. “The Centre should have granted at least ₹50,000 crore,” Sharma told reporters in Jammu.
J&K Congress president Tariq Karra said the budget allocation for J&K was a nominal increase than the previous one. “Instead of a 10% natural step-up every year, J&K has got only a 4.72% nominal rise which barely keeps pace with inflation,” Karra said.
He said that administrative and security spending is expanding, while development and social sectors are pushed to the margins. “Financial autonomy has weakened, central control has grown, fiscal independence is shrinking, and one size fits all schemes leave no room for local needs,” he said.
Congress leader Salman Soz said, “The focus was more on coming up with catchy names of schemes than thinking about a strategy to deploy the resources judiciously to leverage vast private funding (both domestic and international) in support of key industries.”
Firdous Tak, spokesperson of the Peoples Democratic Party (PDP), said the allocation, though appearing substantial, is overwhelmingly composed of routine central assistance and high security-related expenditures rather than genuine investment aimed at transforming the UT’s economic landscape.
BJP’s J&K spokesperson Altaf Thakur said the budget allocation reflected PM Modi’s commitment to the UT. “The increased funding will strengthen infrastructure, healthcare, education, livelihoods and welfare initiatives, directly benefiting people across all regions,” he said.
Rahul Sahai, chairman of the Indian Chamber of Commerce and Industries in J&K, said the Union budget is progressive and sustainable for the country as a whole but it failed to meet the UT’s expectations as a conflict-affected region. Sahai said that the J&K industry had expected greater financial support, particularly for the MSME sector.
Arun Gupta, president of the Jammu Chamber of Commerce and Industries (JCCI), said that J&K has remained under the special focus of the Union Government, and the additional allocation of ₹2,000 crore is a direct message that its focus is on the Union Territory and its development.
Mehbooba for separate budget for old Srinagar city
PDP president Mehbooba Mufti refused to talk on the Union Budget, but said that she wanted a separate provision for Srinagar’s Shehr-e-Khaas (Old City) in the budget for UT.
Mehbooba Mufti was in the old city Srinagar as part of her series of public contact programmes across the UT.
