Union Budget 2024-25 Allocates Rs 42,277.74 Crore to Jammu and Kashmir

NEW DELHI: The budgetary estimate for Jammu and Kashmir has been proposed to the tune of Rs 1,18,390 crore, including revenue expenditure of Rs 81,486 crore and capital expenditure of Rs 36,904 crore.

The government said it is committed to fulfilling the developmental needs and aspirations of the people while maintaining stable fiscal health.

The Union Budget for 2024-25, presented by Finance Minister Nirmala Sitharaman, has allocated Rs 42,277.74 crore to Jammu and Kashmir, marking a nominal increase of 1.2 per cent from the previous fiscal year’s allocation of Rs 41,751.44 crore.

In her budget speech in the Lok Sabha, Sitharaman detailed that Rs 40,619.3 crore has been earmarked as Central Assistance to Union Territories to bridge the resource gap in Jammu and Kashmir.

This includes Rs 7,900 crore as an advance from the Contingency Fund of India, to be recouped after the Demands for Grants for 2024-25 are approved by Parliament and the connected Appropriation Act receives presidential assent.

https://kashmirtimes.com/wp-content/uploads/2024/07/2307202411_EC_Resources_Transferred_States.pdf

Key Allocations and Grants

1. Disaster Response Fund: Rs 279 crore has been allocated to the Jammu and Kashmir Disaster Response Fund to cover expenses related to natural calamities.
2. Hydro Electric Projects: The Union Territory will receive Rs 130 crore towards the equity contribution for the 624-MW Kiru Hydro Electric Project (HEP) and Rs 476.44 crore for the 800-MW Ratle HEP. Additionally, Rs 171.23 crore has been allocated for the 540-MW KWR HEP.
3. Flood Recovery: A grant of Rs 500 crore has been provided for the Jhelum and Tawi Flood Recovery Project (JTFRP).
4. Capital Expenditure: Rs 101.77 crore has been designated to support capital expenditure for infrastructure projects in the Union Territory.

Additional Financial Support

In addition to the main budget, the Centre has allocated Rs 9,789.42 crore to the Jammu and Kashmir Police.

Union Finance Minister Nirmala Sitharaman introduced the budget for Jammu and Kashmir in Parliament on July 23, 2024.

The budget, drafted by the UT Government’s Finance Department, estimated the Union Territory’s own revenue at Rs 21,860 crore, based on various tax and non-tax sources.

Special Financial Support

THE Government of India has agreed to provide special financial support of Rs 17,000 crore.

This includes Rs 12,000 crore for the salary, pension, and other costs of the Jammu and Kashmir Police, and a lump sum special grant of Rs 5,000 crore. This package aims to reduce the fiscal deficit to GDP ratio to 3.0% for 2024-25 and is part of the overall central assistance estimated at Rs 67,133 crore.

https://kashmirtimes.com/wp-content/uploads/2024/07/2307202410_EC_Budget_Highlights.pdf

Major Budget Outlays for 2024-25

1. Power Subsidy: Rs 9,400 crore for power purchase subsidies.
2. Roads and Bridges: Rs 3,983 crore for construction under various schemes.
3. Education: Rs 1,875 crore for school infrastructure and services.
4. Governance: Rs 1,808 crore for local area development works.
5. Water Supply: Rs 1,714 crore for rural tap-water connectivity.
6. Urban Development: Rs 1,484 crore for Smart City projects and urban infrastructure.
7. Social Security: Rs 1,430 crore for social security schemes.
8. Healthcare: Rs 1,317 crore for health sector infrastructure.
9. Housing: Rs 1,104 crore for rural housing projects.
10. Agriculture: Rs 1,021 crore for agricultural development programs.
11. Industrial Development: Rs 923 crore for industrial estate development and incentives.

Key Projects and Initiatives

• Agriculture and Allied Sectors: A USD 100 million loan from IFAD for the J&K Competitiveness Improvement Project.
• Tourism: Development of new tourist destinations and circuits.
• Infrastructure: Construction of new roads, bridges, and housing projects.
• Education: Establishment of kindergartens, ICT labs, and vocational education programs.
• Employment: New initiatives for self-employment and industrial training.
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