Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented the first budget by an elected government in the region in seven years. This marks the first time the budget has been presented in J&K as a Union Territory. Since the BJP’s move to revoke Article 370 and divide the former state into two Union Territories—Jammu and Kashmir and Ladakh—the region’s budget had been presented in Parliament by the Union government.
For the current fiscal year, the budget focuses on boosting economic growth through tourism, agriculture, and industry. A total of ₹815 crore has been allocated to agriculture, and is expected to generate 2.88 lakh jobs.
Industrial growth
To support industry, the government will set up 64 new industrial estates. A new policy will address traders’ concerns by offering price preferences. Seven more local products, including Pashmina, will receive Geographical Indication (GI) tagging to protect and promote them.
Tourism
Tourism remains a key priority, with ₹390.20 crore allocated to the sector. The government expects 2.36 crore tourists in 2024, with increasing interest in destinations like Shiv Khori and Dudh Pathri.
Plans include expanding homestays, developing Sonmarg as a winter sports hub, promoting water sports, constructing a water park in Sidhra and setting up an adventure tourism site in Basholi. Events such as the Kashmir Marathon, which attracted 1,800 international participants, will continue to be promoted.
Healthcare
The budget prioritises healthcare with two new AIIMS hospitals, 10 fully-equipped nursing colleges, ₹5 lakh health insurance coverage for every citizen, expanded telemedicine services, three new Cath Labs, MRI machines in all government hospitals, dialysis services in all district hospitals.
Infrastructure and governance
To improve local governance, 500 new Panchayat Ghars will be built. The government will also introduce a new film policy to make J&K a hub for film production and eco-tourism.
Stamp duty reform
A major reform in stamp duty has been introduced. Property transfers among blood relatives, which currently attract 3-7 per cent stamp duty, will now be completely exempt. “This will encourage legal documentation, reduce inheritance disputes, and provide financial relief,” Abdullah said.
Press freedom
Addressing concerns over press freedom, Abdullah reaffirmed his government’s commitment to ensuring journalists work in a secure and transparent environment.
“The media plays a vital role in shaping public opinion and strengthening democracy. We are committed to facilitating greater access to information and protecting journalists' rights,” he said.
The government also plans to set up and strengthen press clubs in Jammu and Kashmir.
Free electricity
The government will provide 200 units of free electricity per month to all Antyodaya families under the PM Suryaghar Bijli Yojana. With a ₹750-crore investment over five years, the scheme will generate power through grid-connected solar systems, reducing electricity bills and curbing power losses.
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Free public transport for women
From April 1, all women in J&K will be able to use government-run public transport for free. “This initiative will reduce financial burdens and increase women’s participation in education and employment,” Abdullah said.
Food security
To support vulnerable families, Antyodaya Anna Yojana (AAY) beneficiaries will receive 10kg of free ration per person from April 1. The government will also upgrade fair price shops to streamline food distribution.
Financial challenges
Despite ambitious spending, 70 per cent of the budget is allocated to salaries, putting financial pressure on the government. The power sector, burdened by high losses, has seen public debt rise from 48 per cent of GSDP in 2015-16 to 52 per cent in 2023-24. The government has made reducing these losses a priority.
Women empowerment
Under the ‘Lakhpati Didi’ scheme, the government will support 40,000 women in launching micro-enterprises, ensuring an annual income of Rs 1 lakh per year.
Abdullah thanked Prime Minister Narendra Modi, Home Minister Amit Shah, and Finance Minister Nirmala Sitharaman for their support, and assured the people that the budget focuses on development, transparency, and economic stability.