Share your story and shine at JK Monitor!🌟 Welcome to JK Monitor, where every story matters and every achievement is celebrated! We invite you to share the remarkable journey of your life and showcase your accomplishments to the world. Join our exclusive interviews that honor exceptional individuals just like you. JAMMU: Chief Minister and Finance Minister Omar Abdullah on Thursday presented the Budget 2026–27 for Jammu and Kashmir, describing it as a “fiscal compass” designed to steer the Union Territory through recent adversity towards sustained growth, social harmony and long-term prosperity. Delivered against the backdrop of terrorism, devastating floods, and global economic uncertainty, the Budget signals a decisive push towards reform-led development, fiscal prudence and inclusive governance.
Opening his address with a note of humility and resolve, the Chief Minister said the Budget was not merely a statement of accounts but a roadmap shaped by resilience, hope and participatory governance. Wide-ranging consultations with elected representatives, industry leaders and stakeholders, he said, have ensured that the Budget remains firmly people-centric.
Navigating Crisis, Strengthening the Fiscal Base
The past year, Abdullah acknowledged, tested Jammu and Kashmir severely. The Pahalgam terror attack and floods in the Jammu region disrupted tourism, agriculture, handicrafts and livelihoods, intensifying fiscal stress. With salaries, pensions and debt servicing consuming nearly 60% of expenditure, and own revenues meeting only about 25% of budgetary needs, fiscal consolidation has emerged as a priority.
The government outlined a series of reforms to stabilize finances—tightening expenditure, enforcing austerity for the third consecutive year, improving debt management and pursuing power sector reforms to curb losses. Despite GST rationalisation impacting revenues, strengthened enforcement and digitisation pushed tax revenues to over ₹10,000 crore and non-tax revenues close to ₹5,000 crore by December 2025.
Capital Push through Central Support
A major highlight of the Budget is Jammu and Kashmir’s inclusion under the Special Assistance to States for Capital Investment (SASCI) scheme, providing 50-year interest-free loans. The Centre approved multiple tranches of ₹1,431 crore each for capital projects, disaster mitigation and infrastructure rebuilding after floods.
These funds will accelerate hydropower projects, strengthen disaster-resilient infrastructure and support reforms in mining, land governance and urban planning. Digitisation of land records, GIS-based planning and mining reforms have already earned the UT incentives exceeding ₹165 crore.
Buoyed by these measures, Jammu and Kashmir’s GSDP is projected to rise to ₹2.88 lakh crore in 2025–26, with an estimated growth rate of 11%, signalling renewed economic momentum.
Governance, Jobs and Administrative Reforms
The Budget places strong emphasis on governance reforms and employment. Over 7,650 government jobs were filled transparently in 2025, with plans to fast-track recruitment for 23,800 more posts. Compassionate appointments, reforms for daily-rated workers, and timely honorariums for ASHA, Anganwadi workers and vocational instructors reflect a welfare-oriented administrative approach.
The restoration of the Darbar Move in a modernised form was highlighted as both a governance and economic revival measure, particularly for Jammu.
Agriculture, Rural Economy and Women Empowerment
Agriculture and allied sectors continue to anchor rural livelihoods. Under the Holistic Agriculture Development Programme, cultivated area and productivity have increased, oilseed production has doubled, and high-density horticulture is expanding. Dairy reforms, including seven new milk processing plants costing ₹770 crore, aim to raise milk processing from 4% to 25%, benefitting over 11 lakh farmers.
Rural development received a significant boost, with strong performance under MGNREGA, PMAY housing and watershed projects. The Lakhpati Didi initiative has already empowered over two lakh women, while SHG credit linkages crossed ₹418 crore.
Tourism, Culture and Industry Revival
Despite setbacks, Jammu and Kashmir recorded 1.61 crore tourist visits in 2025. The Budget outlines a strategy for sustainable, year-round tourism, with investments in environmental infrastructure, adventure sports, heritage restoration and digital services like the JK Tourism App. An International Film Festival is planned for 2026–27 to enhance global visibility.
Industry and MSMEs saw robust growth, with investments crossing ₹15,000 crore since 2020. New measures such as self-certification for MSMEs, revival support for sick units and a strengthened startup ecosystem aim to sustain momentum beyond central incentive schemes.
Human Development: Health, Education and Social Security
Healthcare and education emerge as central pillars. With 15 medical colleges, two AIIMS and expanded diagnostic services, the health sector continues rapid upgradation. AIIMS Kashmir is slated for commissioning by June 2026. Education reforms aligned with the National Education Policy have improved pass percentages to around 85%, while higher education and research infrastructure are being expanded.
Social security allocations reflect a strong welfare thrust—pension rates have been enhanced, coverage expanded to over 10 lakh beneficiaries, marriage assistance increased for poor girls, and women granted free travel on public transport, making J&K one of the few regions to implement zero-fare mobility for women.
Towards a Resilient, Inclusive Future
From tribal welfare and migrant rehabilitation to clean energy, disaster preparedness and youth skilling through Mission YUVA, the Budget 2026–27 paints a comprehensive picture of a region striving to turn crisis into opportunity.
Concluding his address, Omar Abdullah expressed confidence that with disciplined reforms, strategic investments and collective resolve, Jammu and Kashmir will emerge as a leading region of development, innovation and opportunity, firmly on the path from resilience to renewal.
