Jammu, March 7: Chief Minister Omar Abdullah presented a zero-deficit budget of ₹1.12 lakh crore for the fiscal year 2025-26 in the Jammu and Kashmir Assembly, emphasizing multi-sectoral welfare and economic development of the Union Territory.
This marks Abdullah’s first budget presentation as Finance Minister in the National Conference-led government and the first annual budget for J&K since 2018. The previous state government, a PDP-BJP coalition, had last tabled a budget before J&K's reorganization into a Union Territory in 2019 following the abrogation of Article 370.
Key Financial Highlights of the Budget
- Total Net Budget Estimates: ₹1,12,310 crore (excluding ways and means advances and overdrafts).
- Expected Revenue Receipts: ₹97,982 crore.
- Capital Receipts: ₹14,328 crore.
- Revenue Expenditure: ₹79,703 crore.
- Capital Expenditure: ₹32,607 crore.
- Gross Receipts: ₹1,40,309.99 crore (including an overdraft provision of ₹28,000 crore).
- Total Gross Expenditure: ₹1,40,309.99 crore.
- Own Tax & Non-Tax Revenue: ₹31,905 crore.
- Central Assistance: ₹41,000 crore.
- CSS & PMDP Grants: ₹13,522 crore.
Fiscal Strength & Growth Projection
Abdullah underscored the fiscal discipline of the government, stating that the fiscal deficit for 2025-26 is projected at 3.0% of J&K's Gross Domestic Product (GDP), a significant reduction from 5.5% in 2024-25 (RE).The GDP for 2025-26 is projected at ₹2,88,422 crore, reflecting a 9.5% growth over the previous fiscal year. The tax-to-GDP ratio is estimated at 7.5%.
Budget Priorities: Infrastructure, Economy, and Social Welfare
The Chief Minister highlighted that the budget focuses on inclusive growth, fiscal prudence, and strategic investments in the following key sectors:- Infrastructure
- Agriculture
- Industry
- Healthcare
- Education
- Digital Governance
Consultative Budget for People's Aspirations
In a first, Abdullah mentioned that the government has engaged with elected representatives, industry leaders, and key stakeholders to ensure a people-centric budget.“The government has set new standards of engagement by involving each member of the House in the budget consultation process,” he added.
J&K’s Economic Resurgence & Future Vision
Reflecting on J&K’s economic progress, Abdullah pointed out that the region’s economy has expanded from ₹1,64,103 crore in 2019-20 to ₹2,45,022 crore in 2023-24. For 2024-25, the contribution of the three economic sectors to Gross State Value Added (GSVA) is estimated as:- Primary sector: 20%
- Secondary sector: 18.3%
- Tertiary sector: 61.7%
He concluded with a vision for the future, stating that J&K will emerge as a leading region in India's growth story, contributing significantly to the country’s development goals for 2047.
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