While presenting the budget, CM Omar Abdullah expressed confidence that J&K will emerge as a leading region in development, playing a vital role in the vision of a developed India by 2047.
Chief Minister Omar Abdullah on Friday presented the first budget of Jammu and Kashmir in seven years and announced an allocation of 1.12 lakh crore for 2025-26, terming it as a roadmap for economic growth and a true reflection of people's aspirations.
He said J&K is at the threshold of a new era of peace and prosperity, with a semblance of normalcy returning after over three-and-a-half decades of turmoil.
Presenting the budget in the legislative assembly here, Abdullah, who also holds the finance portfolio, praised Prime Minister Narendra Modi, Union Home Minister Amit Shah and Union Finance Minister Nirmala Sitaraman for their support in various sectors.
Abdullah, dressed in traditional khan suit with a blue blazer and a skull cap, started his over one-and-half-hour speech in English, with the Persian couplet, "Tan Hama Daag Daag Shud – Punmba Kuja Kuja Neham…" (my entire body is covered with bruises where should I apply the balm), amid thumping of benches by his party legislators.
He said the improved environment is contributing to economic progress, with J&K's economy expanding from Rs 1,64,103 crore in 2019-20 to Rs 2,45,022 crore in 2023-24.
"In 2024-25, the primary, secondary, and tertiary sectors are projected to contribute 20 per cent, 18.30 per cent, and 61.70 per cent to GSVA (Gross State Value Added), respectively. It is a testament to the strong foundations laid by the leadership of J&K that despite its geographical challenges and the multi-decade turmoil, the socio-economic indicators continue to remain robust," he said.
Abdullah expressed confidence that J&K will emerge as a leading region in development, playing a vital role in the vision of a developed India by 2047.
"Jammu & Kashmir continues to face significant infrastructure deficits in areas like road connectivity, water supply, sewerage, tourism, and power. Addressing these challenges requires substantial financial resources and continued support from the central government.
"This year, we actively engaged with the central government, resulting in the formation of an expert committee to resolve fiscal issues. I met with the Prime Minister (Narendra Modi, Home Minister (Amit Shah), and Finance Minister (Nirmala Sitaraman) on multiple occasions. I am pleased to share that our efforts have paid off -- the central government has approved special assistance for J&K and will support fiscal reforms to enhance revenue and expenditure management," Abdullah said.
"The total net budget estimates for fiscal 2025-26 are Rs 1,12,310 crore, excluding provisions for ways and means advances and overdrafts," Abdullah said.
With a focus on a zero-deficit budget, he said: "The expected revenue receipts are Rs 97,982 crore and capital receipts are Rs 14,328 crore. Similarly, revenue expenditure is estimated to be Rs 79,703 crore and capital expenditure Rs 32,607 crore."
Detailing the estimates, he said gross receipts are estimated at Rs 1,40,309.99 crore, including provisions for an overdraft of Rs 28,000 crore.
"Given these receipts, total gross expenditure is estimated to be Rs 1,40,309.99 crore," he added.
Abdullah highlighted that the Union Territory's own revenues, both tax and non-tax, are estimated at Rs 31,905 crore.
"Additionally, Rs 41,000 crore is expected as central assistance and Rs 13,522 crore as CSS and PMDP for the Union Territory of Jammu and Kashmir," he added.
Revealing fiscal indicators, he projected the tax-GDP ratio at 7.5 per cent for 2025-26.
The budget has estimated the fiscal deficit for 2025-26 it to be at 3.0 per cent of the Union Territory's GDP.
"This is substantially lower than the 5.5 per cent in 2024-25 (RE)," he added.
The GDP for 2025-26 is projected at Rs 2,884,22 crore, reflecting a growth of 9.5 per cent over the previous year, he added.
The chief minister said the budget for J&K Police, which was around 11 per cent of total allocation, has been migrated to the ministry of home affairs' budget from 2024-25 onward.
"In addition to this, J&K will receive an extra Rs 5,000 crore in grants for 2024-25 and 2025-26. I sincerely thank the prime minister, home minister, and finance minister for their unwavering support in strengthening J&K's fiscal health and realising its vision for growth and prosperity," he said.
This is the first budget of the National Conference led government after it came to power in October last year, ending six years of central rule.
The last budget session took place in 2018 under the then PDP-BJP government in the erstwhile state of J&K, which was accorded the status of Union Territory after Ladakh was carved out as a separate UT following the abrogation of Article 370 on August 5, 2019.
Before presenting the budget, Abdullah wrote in a post on social media platform X that he could have never imagined that he would be presenting the budget one day.
"A little more than 7 years ago, tongue firmly in cheek, I was imitating the ritual of Finance Ministers holding up their briefcases as they enter Assemblies & Parliament to deliver the budget. Never in a million years did I ever imagine I'd be doing this for real," he posted, sharing a picture of himself carrying a briefcase as he walked with the late BJP leader Devender Singh Rana.
"With great humility and a profound sense of duty, I stand before you today to present my first budget as finance minister -- marking the first budget of an elected government in seven years," he said in the assembly.
He further said this budget is more than just a financial statement, it is a roadmap for a new and prosperous Jammu and Kashmir, reflecting the aspirations of its people and laying a strong foundation for economic growth, social progress, and sustainable development.
"As we navigate challenges and embrace new opportunities, I seek the unwavering support and active collaboration of every member of this august House. Together, transcending political differences, we must unite to fulfil our shared commitment to building a stronger, self-reliant Jammu and Kashmir, working for the greater good of our people," he said.
Abdullah said the journey of Jammu and Kashmir has been one of resilience and determination.
"Our government is committed to transforming J&K into a modern, progressive, and economically vibrant region. Our government endeavours to frame a roadmap to reclaim the prudence, sagacity and self-confidence which have been the cornerstones of our identity for generations," he said.
Abdullah said "Our challenges are vast, and our limitations are many. But we must collectively pledge to confront those challenges head-on, with unwavering resolve.
"I have endeavoured to prepare this maiden budget as a true reflection of the dreams of our people, the needs of our future generations, and the aspirations of every citizen of Jammu and Kashmir."
Expressing gratitude to people for their enthusiastic participation in assembly elections, he said the unprecedented voter turnout is a clear testament to their unwavering resolve to move beyond the shadows of past turmoil and actively contribute to the journey of development and progress.
"By granting us a strong mandate, they have entrusted us with the responsibility to serve them. I assure them that we will serve them with sincerity and fulfil their aspirations for a prosperous and thriving J&K," he said.
The restoration of full statehood is a deeply cherished aspiration of the people of J&K, he said, adding that his government remains resolute in working towards its fulfilment.
He also assured of strengthening democracy at grassroots by empowering Panchayati Raj institutions and urban local bodies, which play a crucial role in local governance and development.
"Our government is committed to holding elections to these bodies, reinforcing our commitment to accountable, inclusive, and decentralised governance for the holistic development of Jammu and Kashmir," he said.
The budget emphasises inclusive growth, fiscal prudence, and strategic investments in infrastructure, agriculture, industry, healthcare, education, and digital governance, Abdullah said.
"We are focused on bridging regional disparities, empowering youth and women, and fostering a business-friendly environment to attract investment and innovation," he added.