The 2026–27 budget, presented by Chief Minister Omar Abdullah, outlines a steady and balanced fiscal roadmap for Jammu and Kashmir at a time when the region continues to recover economically while managing long-standing structural constraints. The budget, themed “Safar Jaari Hai,” aims to keep up with ongoing reforms by focusing on support for welfare, growth goals, and careful spending instead of making sudden changes to policies.
With a total outlay of ₹1.27 lakh crore, the budget sets out a clear fiscal structure. Net budget estimates stand at ₹1.13 lakh crore after excluding provisions for advances and overdrafts. Revenue expenditure has been pegged at ₹80,640 crore, while ₹33,127 crore has been allocated for capital expenditure, indicating an attempt to balance day-to-day commitments with long-term infrastructure creation. The Gross State Domestic Product for 2026–27 is projected at ₹3.15 lakh crore, reflecting an expected growth rate of about 9.5 percent. A defining feature of the Budget is its strong welfare orientation. Thirty-two major welfare initiatives have been announced, primarily aimed at easing financial stress on vulnerable households. These include six free LPG cylinders annually for Antyodaya Anna Yojana families, full fee waivers for students from AAY households studying from Class 9 to the undergraduate level, and monthly sponsorship support of ₹4,000 for 6,000 orphaned children under non-institutional care. Together, these measures seek to strengthen household security, improve access to education, and support child welfare. Healthcare receives significant attention, with proposals for new emergency and trauma hospitals at Uri and Poonch, expansion of Lal Ded Hospital in Srinagar with 108 additional beds, and establishment of emergency medicine departments in all government medical colleges over the next two years. PET scan facilities are planned at GMC Srinagar and GMC Kathua, while cardiology services will be expanded through Cath Labs at Rajouri, Baramulla, and Doda. A cancer control strategy is also proposed to focus on prevention, early detection, and improved treatment outcomes. Education and youth empowerment form another major pillar. The JK e-Pathshala DTH channel has been launched to provide free, curriculum-aligned lessons from Class 1 to 12 without internet dependency, with more than 300 educational videos already prepared. Indoor sports facilities are proposed in government schools with an allocation of ₹18 crore, and 1,000 anganwadi centres are to be upgraded into modern Bal Vidyalayas at a cost of ₹72,000 per centre. In agriculture and horticulture, the budget proposes implementation of the restructured weather-based insurance scheme for apple, saffron, mango, and litchi, covering an insured value of ₹6,594.93 crore. Controlled Atmosphere storage capacity, currently at 2.92 lakh metric tonnes across 68 units, is set to expand with additional capacity planned over the next two years. A 25 per cent top-up subsidy for micro and sprinkler irrigation, with an outlay of ₹116.86 crore, is expected to benefit farmers across nearly three lakh hectares. The livestock sector will see the phased establishment of embryo transfer technology laboratories in every district, with an investment of ₹65 crore.The focus of rural development initiatives is to achieve and sustain ODF-Plus status, utilizing district capital funds for the professional operation and maintenance of sanitation infrastructure. From a fiscal standpoint, the budget acknowledges clear limitations. Own tax and non-tax revenues are estimated at ₹31,800 crore, meeting only about 25 per cent of total requirements. Central assistance is projected at ₹42,752 crore, with ₹13,400 crore expected under centrally sponsored schemes. Nearly 60 per cent of expenditure remains committed to salaries, pensions, and debt servicing. The fiscal deficit is estimated at 3.69 per cent for 2026–27, remaining within manageable limits. Digital financial governance features prominently, with all centrally sponsored schemes shifted to the SPARSH platform, Aadhaar-based DBT made mandatory and over 23,000 bills processed through the cyber treasury system.
Overall, the budget presents a soft but steady vision. It combines immediate welfare relief with investments in human capital, healthcare, and rural resilience, while maintaining a cautious fiscal stance. Rather than promising rapid transformation, it seeks incremental progress rooted in inclusion, stability, and shared responsibility, reinforcing the idea that the journey of development in Jammu and Kashmir continues with patience and purpose.