Budget’s 35% to foot salaries, pension bill
Excise revenue shows steep increase in past five years amid opposition’s demand to ban alcohol; calls for liquor ban have been growing stronger in the Jammu and Kashmir with PDP vociferously raising the issue across Kashmir
Though 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 fiscal year 2025-2026, HT takes a closer look into the fiscal indicators of a cash-strapped region, which had been plagued by several ills, including Pakistan-sponsored terrorism and spiraling unemployment.
Total expenditure in 2025-26 (BE) is less than what it was in 2024-25 (BE). To be sure, marginally higher than 2024-25 (RE), to be precise by ₹1,186 crores. The total expenditure for 2025-26 (BE) is ₹1,12,310 crores while it was ₹1,18,390 crores in 2024-25 (BE). The difference was calculated at ₹6,080 crore.
A major shortfall in revenue spending has also been observed. For 2024-25 (BE), the revenue expenditure stood at ₹81,486 crores while it was ₹79,703 crores for 2025-26 (BE), thereby recording a shortfall of ₹1,783 crores.
Rupee as it comes for 2025-26 fiscal showed 13% borrowings, 19% own taxes, 41% central grants, 11% centrally sponsored scheme, 9% own non taxes, 7% ARM/asset monetisation.
Rupess as it goes for the same fiscal year 2025-26 comprises 21% salaries, 14% pension, 18% others, 10% interest, 8% power purchase and 29% capital expenditure.
Combined together, 35% of the budgetary spending will go to meet salaries and pensions bill.
Own tax revenues as a share of GSDP also showed a big jump in 2024-25 RE and 2025-26 BE.
In 2024-25 (RE) the own tax revenue stood at 7.92% and it dipped a little in 2025-26 (BE) at 7.47%.
In tax trends table, excise revenue has seen one of the biggest increase in the last five years since 201819 despite opposition’s demand to ban liquor across Jammu and Kashmir.
The table reflected steep increase in excise duty. It was ₹1,291 crores in 2018-19, ₹1,354 crores in 2019-20, ₹1,347 crores in 2020-21, ₹1,783 crores in 2021-22, ₹1,794 crores in 2022-23 and ₹2,490 crores in 2023-24.
Calls for a liquor ban have been growing stronger in the Jammu and Kashmir with PDP vociferously raising the issue across Kashmir and even launching a signature campaign to garner public support. Three private member bills aimed at liquor ban have also been submitted to the assembly secretariat. Irtiqa Mufti, daughter of Peoples Democratic Party (PDP) chief Mehbooba Mufti, had first raised the issue in February seeking support of the people to ban alcohol consumption in Jammu and Kashmir.
Fiscal deficit ratio as percentage of GSDP stood at 6.47% in 2022-23, 5.75% in 2023-24, 5.55% at 2024-25 (RE) and 3% in 2025-26 (BE).
