- Fiscal prudence, welfare measures and infrastructure drive shape J&K Budget
JAMMU, FEBRUARY 6: Chief Minister Omar Abdullah on Friday presented a ₹1.27 lakh crore Budget for the financial year 2026–27 in the Jammu and Kashmir Legislative Assembly, asserting that the financial blueprint is designed to lay strong foundations for sustainable growth, social harmony and long-term economic prosperity in the Union Territory.
Presenting his second Budget as Finance Minister, Abdullah said the government remains committed to transforming Jammu and Kashmir into a modern, progressive and economically vibrant region by encouraging investment, fostering innovation and strengthening participatory governance.
He informed the House that total gross receipts and expenditure for 2026–27 are estimated at ₹1,27,767 crore, which includes a provision of ₹14,000 crore for ways and means advances and overdraft. Excluding this, the net Budget estimates stand at ₹1,13,767 crore.
Of the total outlay, ₹80,640 crore has been earmarked for revenue expenditure and ₹33,127 crore for capital expenditure, underlining the government’s intent to balance routine spending with long-term asset creation.
Abdullah said expected revenue receipts are projected at ₹90,018 crore, while capital receipts are estimated at ₹23,749 crore. The Union Territory’s own revenues, including tax and non-tax sources, are pegged at ₹31,800 crore. In addition, Jammu and Kashmir is expected to receive ₹42,752 crore as central assistance and ₹13,400 crore under centrally sponsored schemes.
Highlighting key fiscal indicators, the Chief Minister said the tax-to-GDP ratio is projected at 6.6 per cent for 2026–27. He noted that the fiscal deficit for 2025–26 was estimated at 2.98 per cent, significantly lower than 5.5 per cent in 2024–25 (RE). For 2026–27, the fiscal deficit is estimated at 3.69 per cent, marginally higher than 3.63 per cent in 2025–26 (RE).
The Chief Minister said the Gross Domestic Product of Jammu and Kashmir is projected at ₹2,88,422 crore for 2025–26, reflecting a growth of 9.5 per cent over the previous year, while GDP for 2026–27 is estimated at ₹3,15,822 crore, indicating a similar growth trajectory.
Describing the Budget as more than a financial statement, Abdullah said it serves as a fiscal compass guiding Jammu and Kashmir toward a brighter future.
“This Budget is not merely a ledger of figures. It is a roadmap for enduring economic growth, social harmony and sustainable prosperity,” he said, urging all members of the House to work collectively for the region’s development.
Acknowledging challenges faced during the past year, including geopolitical factors, the Pahalgam terror attack and devastating floods in parts of the Jammu region, Abdullah said several sectors such as tourism, handicrafts, horticulture and agriculture suffered setbacks, leading to job losses and financial distress for many families.
He pointed out that own tax and non-tax revenues currently meet only about 25 per cent of the Union Territory’s budgetary needs. Nearly 60 per cent of overall expenditure is committed toward salaries, pensions and debt servicing, underscoring the importance of prudent financial management.
“We are strengthening debt sustainability by keeping borrowings within approved limits and improving liquidity management. For the third consecutive year, austerity measures have been enforced,” the Chief Minister said.
Abdullah acknowledged continued support from the Centre in addressing fiscal challenges, adding that Jammu and Kashmir has been brought under the Special Assistance to States for Capital Investment scheme. Funds under the scheme will be utilised for infrastructure development, hydroelectric projects and disaster mitigation works, particularly in flood-prone areas.
The Budget also outlines a wide range of welfare and development measures. These include full fee waivers for economically weaker students from Class 9 up to college level, six free LPG cylinders for eligible households, monthly support for orphaned children, scholarships for tribal students and free government transport for persons with disabilities.
In agriculture and allied sectors, the Budget proposes crop insurance for apple, saffron, mango and litchi, expansion of storage facilities, promotion of micro and sprinkler irrigation, cultivation of medicinal plants and establishment of livestock genetic improvement laboratories in every district.
On education and youth empowerment, the government proposed JK e-Pathshala DTH channels for Classes 1 to 12, modernisation of anganwadi centres, creation of indoor sports facilities in government schools and priority hiring of local youth in subsidised industries.
The Chief Minister said the Budget was prepared after wide consultations with elected representatives, industry leaders and stakeholders to ensure it remains people-centric.
“Together, we will turn obstacles into stepping stones and aspirations into achievements,” Abdullah said, expressing confidence that the Budget will help steer Jammu and Kashmir toward inclusive, resilient and sustainable growth.