LG terms it ‘pragmatic’, says it reflected India’s growing aspiration for growth and to stimulate the private sector
Jammu: The Centre has allocated Rs 41,000.07 crore to Jammu and Kashmir in the Union Budget for 2025-26, which is almost the same as the revised estimate for the 2024-25 fiscal.
Additionally, the Jammu and Kashmir Police — directly controlled by the Union home ministry since the abrogation of Article 370 and the reorganisation of the erstwhile state — will receive Rs 9,325.73 crore, up from Rs 8,665.94 crore in 2024-25.
In the budget presented by Union Finance Minister Nirmala Sitharaman in the Lok Sabha on Saturday, Rs 40,619.30 crore has been allocated as central assistance to meet the resource gap in Jammu and Kashmir.
Rs 279 crore has been allocated as grants towards contribution to the Union Territory Disaster Response Fund and Rs 101.77 crore as support for capital expenditure.
The Centre had allocated Rs 42,277.74 crore to Jammu and Kashmir for the 2024-25 fiscal that was later revised downwards to Rs 41,000.07 crore. In the 2023-24 fiscal, the allocation for Jammu and Kashmir was Rs 41,751.44 crore.
The allocation for the Jammu and Kashmir Police for the upcoming 2025-26 fiscal is Rs 659.79 crore higher than in 2024-25.
The Union home ministry said the fund was for meeting administrative expenditures.
The Jammu Kashmir Police is responsible for maintaining and enforcing law and order and traffic management in the Union Territory.
Lieutenant Governor Manoj Sinha called the budget “pragmatic” and said it reflected India’s growing aspiration for accelerated growth and to stimulate the private sector.
The Congress’ Jammu and Kashmir unit and senior CPI(M) leader MY Tarigami, however, called the budget allocation “disappointing”.
“My heartfelt thanks to (Union) Finance Minister Nirmala Sitharaman for a pragmatic budget for ‘Viksit Bharat’. Grateful to Prime Minister Narendra Modi for putting the economy on a fast-track and for bold development initiatives for the poor, youth, farmers and women,” the lieutenant governor said in a post on X.
Referring to the Income Tax exemption up to Rs 12 lakh under the new regime, Sinha said it was a big boost to the middle class.
“The revised tax structure is a historic move to bring change in the lives of the middle class. The prime minister has also provided huge relief to the taxpayers by raising the TDS limit on rent, enhancing social security and formalising the gig economy,” Sinha said.
“The focus on agricultural growth with various initiatives, including the agri district programme, seeks to translate the vision of rural prosperity and social equity,” he added.
India is the fastest-growing of all major economies and this budget will further boost the infrastructure sector; micro, small and medium enterprises (MSMEs); the energy sector; innovation; employment generation; and push transformative reforms in key fields for more inclusive and sustainable growth, he further said.
Reacting to the budget, Kulgam MLA Tarigami said it was “highly disappointing” as far as Jammu and Kashmir was concerned.
“Instead of providing more assistance to Jammu and Kashmir, the Centre has lowered the allocation compared to the actual budget of 2024-25, without taking into account the high inflation, growing unemployment, distressed business and other vital sectors of livelihood,” he said.
“The purchasing power of the people including the so-called middle class has alarmingly come down in Jammu and Kashmir over the years,” he added.
Tarigami said the central government should have responded to the situation and offered some relief to the people of Jammu and Kashmir. “It seems they are punishing the people of Jammu and Kashmir for the mandate of the 2024 assembly elections, which did not suit them.”
The Jammu and Kashmir Pradesh Congress Committee also reacted sharply to the budget and said it had ignored the region in terms of the special focus needed to provide relief to the “worst suffering” people, especially the unemployed youngsters.
“The budget was more focused on Bihar and Delhi for political considerations in view of assembly elections,” the Congress’ Jammu and Kashmir chief Tariq Hameed Karra said.
Jammu and Kashmir is grappling with the worst kind of unemployment, which is the second highest in the country, while a large number of youngsters working on meagre wages are awaiting regularisation, he said.
“Except for a long-overdue minor relief for the salaried class in Income Tax slabs, there is no relief to the middle class and poor, who are facing the worst ever price hike on all items of daily use,” he added.
