SRINAGAR: The Union Government has proposed an allocation of Rs 41,000.07 crore for Jammu & Kashmir Union Territory in the Union Budget for the financial year 2025-26.
However, there is no increase in central assistance compared to the previous fiscal year. Of the total allocation, Rs 40,619.30 crore is earmarked as central assistance to help bridge the region's resource gap.
Additionally, Rs 279 crore is proposed for the Union Territory Disaster Response Fund, and Rs 101.77 crore is allotted for funding infrastructure project resource gaps. The financial assistance for the current fiscal has been revised to Rs 41,000.07 crore, down from Rs 42,277.74 crore.
Jammu and Kashmir in Union Budget 2025-26
1. Transfers to Jammu & Kashmir, Ministry of Home Affairs
Rs. 41,000.07 crore
2. Industrial Development
Industrial Development Scheme (2017) for J&K and Ladakh
Allocation: Rs. 26.13 crore
Launched on April 23, 2018
Benefits:
Capital Investment Incentive for credit access
Comprehensive Insurance Incentive
Central Interest Incentive
Additional incentives (from Jan 1, 2019):
GST & Income Tax Reimbursement
Transport & Employment Incentives
Valid from June 15, 2017 – March 31, 2022
3. New Central Sector Scheme for Industrial Development (J&K)
Allocation: Rs. 300 crore
Effective till March 31, 2037
Total outlay: Rs. 28,400 crore
Key Incentives:
Capital Investment Incentive
Capital Interest Subvention
GST Linked Incentive (GSTLI)
Working Capital Interest Subvention
4. Refund of Central & Integrated GST to Industrial Units (NER & Himalayan States)
Allocation: Rs. 1,852.83 crore
Jammu & Kashmir included under this scheme
5. Prime Minister's Girls' Hostel
Allocation: Rs. 2 crore
Part of PM’s Development Package 2015
Construction of girls’ hostels in Jammu & Kashmir
6. Jammu & Kashmir Police
Allocation: Rs. 9,325.73 crore
For administrative expenses
Responsible for law & order and traffic management
7. Enhancement of Sports Facility in J&K
Allocation: Rs. 20 crore
Promotes peace & development
Upgrading sports infrastructure & facilities
Reaction to J&K Budget Allocation
Union Budget ignored special focus needed for J&K, instead focussed on Bihar and Delhi elections
Jammu & Kashmir Pradesh Congress Committee (JKPCC) has said that union budget has ignored J&K, in terms of the special focus needed here to give relief to worst suffering people especially the youth in special circumstances prevailing in this border region and rather the budget focussed more on Bihar & Delhi for political considerations.
Terming the budget as focussed on Bihar and Delhi elections, JKPCC has said that it has ignored the special focus needed to a worst suffering region like Jammu and Kashmir, where unemployment is at its peak being second highest in the country and a large number of youth working on meagre wages awaiting regularisation of jobs besides no other job opportunities available here.
JKPCC Chief Tariq Hameed Karra has said that people are facing worst ever price escalation, unprecedented taxations of all sorts, the unemployed youth facing frustration in the absence of jobs in government and private sector, the centre government should have been more sensitive to the special attention needed towards youth of J&K but unfortunately it has ignored the genuine case of youth of J&K for special attention. Although it focussed on the needs of Bihar and Delhi eyeing assembly elections.
Except for a long overdue minor relief for salaried class in the Income Tax slabs, there is no relief to the middle class and poor people, facing worst ever price hike of all items of daily use.
There is no focus to reduce the unprecedented taxes of all sorts on all item of common use whereby middle and poor people are hard pressed to meet routine needs
There is no measure to increase income or savings of people by providing alternate means of earning and reducing taxes and giving concessions to common people.
The Modi government came to power by promising two crore jobs annually but now no mention of how many jobs were provided in ten years or being created for record unemployed youth in the country.
The farmers were promised legal guarantee of MSP, reforms in Fasal Bima Yojna but nothing was fulfilled. Modi government can give loan waiver of over 16 lakh crores to big bank defaulters but didn't consider loan waiver to farmers and exemption of most agricultural appliances taxed under GST. Government should have given more subsidies on seeds,fertilizers and pesticides etc. to farmers who are not getting good returns of their production.
The budget didn't consider enhancement of honorarium of Anganwadi workers, Helpers, Asha workers & other such categories of temporary employees besides providing special assistance for the welfare and regularisation of large number of youth and women working on casual,adhoc & other temporary measures in the suffering region of J&K.
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