Budget foresees robust 7.5% GDP growth, touching Rs 2.63 lakh Cr in 2024-25

Srinagar, Feb 5: In a glimpse into the economic outlook of Jammu and Kashmir, the interim budget has unveiled projections indicating that Jammu and Kashmir’s Gross Domestic Product (GDP) is set to reach Rs 2.63 lakh crore, reflecting a notable growth of 7.5 percent in the fiscal year 2024-25.

As per the budget document, GDP for the year 2024-25 has been projected at Rs 2,63,399 crore which shows a growth of 7.5 percent over the previous year.

The interim budget for J&K has provided a detailed insight into the economic strategies and achievements of the union territory. The projections indicate a promising Gross Domestic Product (GDP) of Rs 2.63 lakh crore with a notable growth of 7.5 percent in the fiscal year 2024-25.

The tax-to-GDP ratio is estimated at 7.84 percent, reflecting an increase from the previous year's 6.56 percent, while the Debt-to-GDP ratio for 2024-25 stands at 51 percent.

The economic focus remains on equitable growth across all sectors, and the government has diligently pursued both tax and non-tax avenues for sustained development.

Noteworthy initiatives include the expansion of GST dealer registrations, growing from 72,000 in 2018 to 1,97,000 in 2023.

Strategic enforcement drives and capacity-building efforts have contributed to the effective tracking of purchases and GST leakages.

The implementation of the e-stamping system for document registration, coupled with a transparent excise policy, has significantly boosted revenue streams.

Stamps and registration revenues surged from Rs 190 crore in 2018-19 to an impressive Rs 486 crore in 2022-23.

The excise sector has witnessed robust growth, with GST, excise, and stamp revenues collectively showcasing healthy figures.

In particular, Goods and Services Tax (GST) revenue reached Rs 6018 crore in 2023-24 (up to December 2023), demonstrating a remarkable 10.60 percent growth compared to the same period in 2022-23. Motor spirit taxes saw an increase to Rs 1240 crore in 2023-24 (till December 2023), and stamp revenue exhibited a growth of 9.7 percent, reaching Rs 416 crore up to December 2023.

The excise collection also witnessed an impressive uptick, touching Rs 1758 crore by the end of December 2023, showcasing a growth of 26 percent compared to the same period in 2022-23.

These figures underscore the success of J&K’s revenue initiatives and the sustained positive trajectory of its economic landscape.