Announces 200 free electricity unit, 10 kg ration for AAY beneficiaries
Free ridership for women; proposed new hydropower policy, zero stamp duty on property gifted to blood relatives
Jammu: Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented the first budget of the Union Territory with an outlay of Rs 1.12 lakh crore, and proposed a series of welfare and development initiatives for 2025-26, reflecting 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 a 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.
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.
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.
“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.
The budget emphasises inclusive growth, fiscal prudence, and strategic investments in key sectors, including infrastructure, agriculture, industry, healthcare, education, digital governance, and tourism.
The budget also proposed to introduce a new hydropower policy to tap the UT’s full potential of 20,000 MW and attract private investment.
“We are focused on bridging regional disparities, empowering youth and women, and fostering a business-friendly environment to attract investment and innovation,” Abdullah, who also holds the finance portfolio, said while presenting his maiden budget in the assembly.
With an aim to unlock Jammu & Kashmir’s industrial potential, Abdullah announced a significant step towards establishing a leather tanning industry.
“Currently, around 5,000-6,000 pelts produced daily in Kashmir go to waste due to the absence of processing facilities. To harness this opportunity, the government will formulate a policy to promote leather tanning industries, ensuring value addition. Processing these skins into leather will contribute an additional Rs 100 crore to J&K’s economy,” he said.
Emphasising the importance of a resilient rural economy, Abdullah announced the launch of the “J&K Green Mission” in 2025.
“We will unite communities to make villages clean and green through waste segregation, proper disposal, and vermicomposting,” he said.
To ensure sustainability, the government will implement the Own Source Revenue (OSR) policy to make every village panchayat self-sufficient over the next five years.
Additionally, under the Pradhan Mantri Awas Yojana – Gramin, 3.40 lakh houses have been sanctioned, with 50,000 more to be built in 2025-26, he said.
Buoyed by the tourism sector’s record-breaking show in 2024, with 2.36 crore tourist footfalls, Abdullah announced a strategic expansion plan under the SPREAD (Sustainable Promotion of Emerging Alternate Destinations) initiative.
“This initiative will help develop world-class alternative destinations across J&K, reducing pressure on heavily visited locations. With the central government’s support, we are already in the planning phase,” he said.
He also announced an eco-tourism policy that will ensure sustainable tourism while tackling waste management challenges, particularly plastic waste at tourist sites.
A multi-stakeholder advisory committee to address issues in the tourism and hospitality sector will be set up too, he said, adding that Gulmarg Gondola attracted 7.68 lakh visitors in 2024, and the Kashmir Marathon saw 1,800 global participants.
“Tourism’s contribution to GSDP will be increased from 7 per cent to 15 per cent in the next 4-5 years,” he added.
In order to bolster J&K’s startup ecosystem, the government has also allocated Rs 50 crore for providing financial aid, mentorship and incubation for entrepreneurs.
“This will foster innovation, empower startups, and position Jammu and Kashmir as a dynamic hub for entrepreneurship,” Abdullah said.
For MSMEs (micro, small and medium enterprises), he announced a new policy to provide price preference to local small businesses in public procurement, addressing concerns regarding central government’s online marketplace GeM.
To combat illegal mining, he said that a mining surveillance system using satellite imagery will be implemented in collaboration with BISAG. Additionally, handheld e-challan devices will be introduced for enforcement, he noted.
Abdullah also unveiled the SEHAT App, saying this is set to revolutionise healthcare in J&K.
“This app will offer teleconsultation services, online doctor appointments in government hospitals, and a digital health records system integrated with AB-PMJAY-SEHAT insurance,” he said.
The chief minister also added that the app will include AI-powered diagnostics, e-prescriptions, medicine delivery, and emergency health support. “Ambulance services and real-time updates on preventive care, vaccinations, and wellness programmes will also be provided.”
On the education sector, he said the government will upgrade 40 higher secondary schools — one boys’ and one girls’ school per district — into integrated K-12 institutions.
“We are committed to transforming J&K into an educational hub by fully implementing NEP 2020 and launching four-year undergraduate programmes in all colleges,” Abdullah said.
He also announced 600 additional seats in polytechnic colleges.
The government will encourage private universities to set up satellite campuses in J&K, he added.
To transform J&K into a hub of sporting excellence, the budget has envisaged setting up of national centres of excellence for water sports at Dal Lake (Srinagar) and Basohli (Jammu) and a gymnastics academy at Gindun Rajbagh and Khel Gaon, Nagrota.
The FY26 budget has proposed four state-of-the-art cricket academies with an allocation of Rs 8 crore, youth hostels in Jammu & Kashmir divisions with an outlay of Rs 10 crore, apart from the development of 247 playfields, stadiums, and sports courts.
The government aims to engage “75 lakh youths in sports activities across J&K, fostering a culture of fitness and excellence”, he added.
The government has plans to establish the Jammu & Kashmir Skill and Entrepreneurship University (J&K SEU), he noted.
“This university will offer cutting-edge training in technology, healthcare, tourism, renewable energy, and traditional crafts while fostering innovation and industry partnerships,” Abdullah said.
To strengthen food security, Abdullah announced that 10 kg of free ration per person will be provided to AAY (Antyodaya Anna Yojana) beneficiaries from April 1 this year.
For social security, pension amounts have been increased to Rs 1,250 per month for persons below 60 years, Rs 1,500 per month for persons aged 60-80 years, and Rs 2,000 per month for those aged 80 and above, he said.
“This will increase the total pension outlay from Rs 1,209 crore to Rs 1,755 crore annually,” he added.
Announcing free public transport for women, he said, “On International Women’s Day, I announce free ridership for women on all government-owned public transport, including e-buses, starting April 1, 2025”.
“This will enhance access to education and employment while ensuring safer, more affordable travel,” he said.
He further proposed that the financial aid under the Marriage Assistance Scheme for AAY category girls will be enhanced from Rs 50,000 to Rs 75,000.
About hydropower and energy reforms, he said J&K has a hydropower potential of 20,000 MW, but only 3,400 MW has been harnessed and added that initiatives are being taken so that Pakal Dul, Kiru, Kwar, and Ratle projects could add 3,000 MW by 2027.
“A new hydropower policy will be formulated to attract private investment and fast-track projects,” he said.
The chief minister also announced 200 units of free electricity per month for Antyodaya families.
On infrastructure and government housing, he said a new legislative complex in Jammu has been allocated Rs 50 crore (Rs 208 crore total project cost). Additionally, 4,500 government residential units in Jammu and Srinagar will be constructed, with new projects for 300 more units.
“Twin towers with 64 modern 3BHK and 4BHK flats at Canal Road, Jammu (Rs 20 crore allocation) will be constructed too,” he said.
“This budget is a step towards a self-reliant, prosperous, and equitable Jammu & Kashmir,” Abdullah said.
With major investments in industry, tourism, education, and infrastructure, the budget lays the foundation for economic growth, sustainability, and social welfare, he added.
He also proposed zero stamp duty on property gifted to blood relatives’
To promote ease of transactions and reduce legal disputes over property transfers, he said” I propose a reform in the stamp duty structure for gift transactions among blood relatives. Currently, the stamp duty for such transactions varies from 3% to 7%, which discourages formal registration. To address this, I propose reducing to zero, benefiting families by encouraging legal documentation and reducing inheritance disputes,” he said
