Union Finance Minister Nirmala Sitharaman on Sunday proposed Rs 43290.29 crore for Jammu & Kashmir Union Territory in the Union Budget 2026-27, which is nearly Rs 2000 crore more than the allocation for the current year.
According to budget figures, the Union Finance Ministry has proposed Rs 43290.29 crore in transfers to Jammu & Kashmir for 2026-27.
J&K’s assistance for the current financial year has been revised to Rs 41340 crore, up from Rs 41000.07 crore, marking an increase of Rs 340 crore. For 2026-27, the budget proposes Rs 42650 crore as central assistance to bridge the resource gap of J&K,Rs 279 crore as grants towards contribution to the Union Territory Disaster Response Fund, Rs 259 crore as equity for the Jhelum Tawi Flood Recovery Project and Rs 101 crore as support for capital expenditure in the Union Territory.
Lieutenant Governor Manoj Sinha on Sunday expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman on development of ecologically sustainable mountain trails in Jammu and Kashmir. Hailing the Budget 2026-27 as “pragmatic” LG Sinha, said, “The initiative will generate fresh employment opportunities and invigorate our (JK’s) tourism industry with renewed vigor.”
Meanwhile, the President of the Jammu Chamber of Commerce and Industries (JCCI), Arun Gupta, said that the Union Budget 2026 reflects a strong push towards building a developed India and an additional Rs 2,000 crore allocation for Jammu and Kashmir reflects the Union government’s focus on its development,"I feel that this budget reflects a move towards a developed India. Every sector has been given priority, and each has been provided adequate space,” he told reporters here.
Terming the budget as balanced, the JCCI president said that its proper implementation at the state level would ensure benefits reach people across all sectors.He said that the budget has made provisions for sectors including industry, MSMEs, semiconductors, education, defence, agriculture and sports, ensuring balanced growth across the economy.
"As far as Jammu and Kashmir is concerned, the budget session is scheduled to begin from tomorrow. However, the increased allocation by the Union Government clearly sends a message that it is serious about the development of the Union Territory,” he said. He said that JCCI wants Jammu and Kashmir to progress in the same way as other states are developing. “In fact, I believe that with a special approach, the Union Government should focus on Jammu and Kashmir. Jammu and Kashmir has remained under the special focus of the Union Government, and the additional allocation of Rs 2,000 crore is a direct message that its focus is on Jammu and Kashmir and its development,” he added.
He said that Jammu and Kashmir has remained under the special focus of the Union Government, and the additional allocation indicates its commitment towards accelerating development in the region.
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