The process of preparing a public budget is often viewed as a largely technical exercise, centered on figures, allocations, and fiscal targets. Yet, in essence, a budget is a reflection of a government’s understanding of the needs and aspirations of its people. In Jammu and Kashmir, the ongoing pre-budget consultations ahead of Budget 2026–27 represent a thoughtful effort to make this process more inclusive and participatory, particularly by giving space to voices from industry, trade, and business.
These consultations come at an important juncture for the Union Territory, which continues to work towards strengthening its economic base and creating new growth opportunities. Micro, small, and medium enterprises, along with larger industrial units, play a vital role in generating employment and supporting local livelihoods. Their experiences, challenges, and expectations provide valuable insights into what kind of policy support is required to sustain and expand economic activity. By engaging directly with these stakeholders, the government is taking a constructive step towards grounding its fiscal planning in real-world conditions. Stakeholder-driven dialogue also reflects a growing appreciation for cooperative governance. It acknowledges that effective policy-making benefits from collaboration between the state and society. Chambers of commerce and industrial associations such as ICC Jammu, FOIJ, ASSOCHAM, and others, through their collective experience, are well placed to highlight issues such as access to credit, infrastructure gaps, regulatory complexities, and market constraints. When such perspectives are shared in a structured manner, they can help policymakers design more responsive and balanced interventions. Another positive aspect of participatory budgeting is its ability to promote a sense of shared responsibility. Stakeholders who are consulted in the early stages of budget formulation are more likely to understand the constraints faced by the government and to engage in realistic discussions about priorities. This mutual understanding can contribute to budgets that are both development-oriented and fiscally prudent, aligning long-term aspirations with available resources. For Jammu and Kashmir, integrating industrial policy priorities into the budget framework is particularly important. The region’s economy is in a phase of transition, with an emphasis on attracting investment, supporting existing enterprises, and diversifying economic activity. Targeted fiscal measures, shaped through dialogue, can address structural challenges such as higher logistics costs, limited local markets, and the need for improved infrastructure. Pre-budget consultations provide a valuable platform to ensure that these concerns are reflected in policy choices. Chamber-led policy advocacy also plays a constructive role in strengthening regional economic resilience. When industry bodies present comprehensive and data-driven proposals, they help move the discussion beyond individual demands towards a broader understanding of economic development needs. This approach supports the idea of industry-led growth, where private enterprise becomes a key partner in the development process. At the same time, the effectiveness of consultative governance depends largely on follow-through. Clear communication about how stakeholder suggestions have been considered and periodic engagement during implementation can further build confidence in the process. Even when certain proposals cannot be accommodated immediately, explaining the reasons in a transparent manner helps sustain trust and encourages continued dialogue. Participatory public finance management also contributes to democratic accountability. It reinforces the principle that budgets are not merely administrative documents but social contracts that reflect collective priorities. When people feel that their voices matter, it deepens their sense of belonging and strengthens the relationship between citizens and institutions. The current round of pre-budget consultations in Jammu and Kashmir therefore represents a promising step towards more responsive and inclusive governance. While no single process can address all challenges, sustained stakeholder engagement can significantly improve the quality of decision-making. It creates space for cooperation, nurtures mutual understanding, and helps align policy with ground realities.
Ultimately, inclusive budgeting is about recognizing that sustainable development is best achieved when policies are shaped with the participation of those they seek to serve. By continuing to strengthen consultative practices, Jammu and Kashmir can move closer to an economic model that is balanced, people-centered, and resilient, supporting industry-led growth while advancing the broader goal of shared prosperity.