Chief Minister Omar Abdullah presented a zero-deficit budget for Jammu and Kashmir in the legislative assembly on Friday. The budget for 2025-26 has a total outlay of Rs 1.12 lakh crore, focusing on welfare, inclusive growth, and economic development in the Union Territory.
Abdullah, who also holds the finance portfolio in the National Conference-led government, delivered his first budget speech amid applause. This marks the first annual budget for J&K since 2018, following its reorganisation as a Union Territory in 2019.
Starting his speech with a Persian couplet, Abdullah said, “I stand before you today to present my first budget as finance minister, marking the first budget of a collective government in seven years. While it is an honour, I am acutely aware of the weight of responsibility that comes with being the custodian of J&K’s finances at this crucial juncture.”
He described the budget as a roadmap for a "new and prosperous J&K," aimed at economic growth, social progress, and sustainable development.
Budget Highlights
The net budget estimates for 2025-26 are Rs 1,12,310 crore, excluding provisions for advances and overdrafts. Explaining the figures, Abdullah said, “The expected revenue receipts are Rs 97,982 crore and capital receipts are Rs 14,328 crore. Similarly, revenue expenditure is estimated at Rs 79,703 crore and capital expenditure at Rs 32,607 crore.”
The gross receipts for the year are estimated at Rs 1,40,309.99 crore, including an overdraft provision of Rs 28,000 crore. The total gross expenditure has been estimated at the same amount.
J&K’s total revenue from taxes and other sources is expected to be Rs 31,905 crore, while the Union government will provide Rs 41,000 crore as central assistance and Rs 13,522 crore under various schemes, including the PMDP (Prime Minister’s Development Package).
Also Read: Students in J&K return to schools after three month break
Fiscal Indicators
Abdullah projected the tax-to-GDP ratio at 7.5% for 2025-26. He also stated that the fiscal deficit is expected to be 3.0% of J&K’s GDP, significantly lower than 5.5% in 2024-25. The GDP for 2025-26 is projected at ₹2,88,422 crore, reflecting a 9.5% growth over the previous year.
The budget prioritises inclusive growth, financial discipline, and investments in key sectors like infrastructure, agriculture, industry, healthcare, education, and digital governance. Abdullah said, “We aim to bridge regional disparities, empower youth and women, and foster a business-friendly environment to attract investment and innovation.”
He emphasised that the budget was designed based on inputs from elected representatives, industry leaders, and key stakeholders, ensuring that it meets public expectations.
“We engaged with elected representatives, industry leaders, and key stakeholders, incorporating their insights to create a people-centric roadmap for a better quality of life for all,” he said.
Abdullah highlighted J&K’s economic progress in recent years, stating that the economy grew from Rs 1,64,103 crore in 2019-20 to Rs 2,45,022 crore in 2023-24. He added that in 2024-25, the primary, secondary, and tertiary sectors are expected to contribute 20%, 18.3%, and 61.7% to Gross State Value Added (GSVA), respectively.
Looking ahead, Abdullah expressed confidence that J&K will emerge as a leading region in development and play a key role in India's vision for economic growth by 2047.
Also Read: Bring back not only PoK but also CoJK: Omar Abdullah
Follow us
