Development budget, just 30% !
Chief Minister Omar Abdullah who is also J&K’s Finance Minister recently presented the Rs 1,13,767 crore budget for 2026-27. As usual this year’s budget also promises for better healthcare, jobs, social security, better road infrastructure, power and water supply. A massive amount of Rs 80,640 crores goes toward routine administrative expenses like salaries, pensions, interest on public debt, power purchase and other commitments of the Government. I wish the budget speech document had made further explanation of these expenses. It seems only 29 to 30 % of the budget is left for actual infrastructural and other developmental works in different sectors. This amounts to around Rs 33,127 crores and covers sectors like road constructions, rural development, power projects, water, health, sanitation etc. J&K’s own income from taxes and other sources reaches only Rs 31,800 crore, close to one quarter of total needs. Central assistance of Rs 42,752 crore, along with Rs 13,400 crore under centrally sponsored schemes-CPS, fills most of the remaining gap. It is clear that Jammu & Kashmir continues to rely on support from New Delhi rather than generating its own income. This is also debatable as the political situation in J&K has been very hostile especially from last 35 years.
Moreover, successive Governments in J&K also could not mobilise centre to get reimbursed for losses on account of Indus Water Treaty. Jammu & Kashmir has suffered huge economic and agricultural losses which is estimated to be more than Rs 65,000 crores, on account Indus Water Treaty of 1960 that allocated the western rivers (Indus, Jhelum, Chenab) primarily to Pakistan, limiting our irrigation and hydropower development.
Verification of AAY beneficiaries
As compared to last years budget 2026–27 is on higher side. In 2025-26 the budget was around Rs 1.12 lakh crores and this is now more than Rs 1.13 lakh crores which means an increase of more Rs 13000 crores . There is a bit hope as promises for better roads, power, sanitation, health and water supply has been made. The poorest of poor families coming under Antodaya Anna Yojna AAY category will continue to get free ration and in addition to it they will get six free gas cylinders as well which is around Rs 6000 for each family. Before this is done I would suggest Govt to cross check and make proper verification about these AAY families. There are many non deserving families who get benefits of AAY category and have obtained AAY ration cards through illegal means while as many poorest of poor continue to have APL or BPL ration cards.
No transparency in execution of CSS
It is a known fact that only 30 % of the annual budget is actually spent on infrastructure development in J&K, but ironically this meagre amount is also not utilised properly especially when it comes to execution of centrally sponsored schemes -CSS. The funds allocated under centrally sponsored schemes like Swachh Bharat Mission Gramin- SBM-G especially those meant for construction of around 4200 plus waste segregation sheds @ Rs 4.50 Lakhs / shed have been mismanaged in last 5 years. Govt has spent around Rs 193 Crores for construction of these sheds in 4200 plus gram panchayats of J&K but not even one such facility is working as per MSW Rules 2016? Instead they have become nuisance for people as many of the sheds have been constructed near water-bodies (streams and rivers) or near public places ? So we have lot of such wasteful expenditures done in last many years which needs to be exposed. Even after spending hundreds of crores the problem of rural waste management hasn’t been addressed and this has become more problematic now as we see garbage dumps in every village across Kashmir and parts of Jammu region as well.
Mining Surveillance System?
The budget 2026-27 talks about implementing the Integrated Mining Surveillance System (IMSS) in collaboration with BISAG-N. This system will enable satellite-based monitoring of mining areas, generate real-time triggers on illegal mining activities and share this with enforcement officers for prompt verification and legal action. What is the need of installing IMSS when riverbed mining -RBM and earth mining has already devastated our rivers, streams, mountain zones and karewas.The rivers are dredged so deep that they are now without sand and riverbed material. Such system should have been installed when e auctioning of mining blocks was done in 2019 onwards in J&K.
Huge loss to exchequer has been done by construction companies, project proponents who have looted our rivers, streams and karewas. An estimated Rs 5000 crores loss has been caused in Kashmir valley alone in last 5 years due to illegal Sand Mining, Clay Mining and Boulder / Bajri Mining. The facts have already been placed before National Green Tribunal -NGT who imposed a penalty of Rs 1 Crore on Mining Department Budgam some years back for allowing illegal mining in Doodh Ganga. In Sukhnag riverbed mining case Rs 1.30 Crore had been realized as royalty for sand , bajri and boulders but the loss amounts to Rs 300 crores or more. This author had to take up the case in National Green Tribunal-NGT some years back who imposed complete ban on mining there around January 2025. Recently the National Green Tribunal-NGT constituted a team of officers from Ministry of Environment Forest and Climate Change -MoEFCC, Central Pollution Control Board -CPCB , JK Pollution Control Committee-JKPCC and DCs of Pulwama and Budgam to check devastation caused in Karewas of Zadoora and Rangeen Kultreh in Pulwama & Budgam districts. Had such losses not been caused to state exchequer imagine how much revenue would have been generated from sustainable mining practices in last 10 to 15 years ?
Waste Management Plants, STPs
The budget document talks about strengthening environmental infrastructure especially setting up waste management plants, Sewerage Treatment Plants STPs etc. Before setting up new waste management plants or STPs isn’t it the responsibility of the Govt to conduct the performance audits of already installed plants in J&K. Why are such machines defunct especially those purchased by Srinagar Municipal Corporation-SMC, Directorate of ULB Kashmir, Tourism Development Authorities, UEED etc ? A 3.2 million litres per day- MLD, sewerage treatment plant- STP will be set up at Gulmarg and existing Solid Waste Management Plant will be upgraded under this years budget. Will Govt not hold inquiry how the solid waste management- SWM plant set up in 2017-18 at Gulmarg became defunct even after spending crores of rupees ? Similar plants are not working in Yusmarg, Sonamarg , Pahalgam and other tourist places as well as authorities didn’t had any plans on their operation and maintenance ? The waste management plant set up for Rs 5 to 6 crores at Dangerpora Padgampora by Municipal Council Awantipora is posing threat to local biodiversity and population. Not even 20 kgs of waste is treated there and I can quote dozens of more such examples. This was simply a loot of taxpayers money?
Conclusion
Even if mere 30% of J&K’s total annual budget is spent efficiently we can still get better results. But unfortunately this small amount is also looted and mismanaged. The civil society organizations, media and Accountant Generals Office can perform an important task of bridging the gap between the vulnerable sections of the population and the Government so as to make the public authorities accountable to people. The Accountant General’s office must create awareness and conduct physical audits on the ground which includes performance and environmental audits both. As an Honorary Member of J&K State Audit Advisory Board this author has put these suggestions before the Accountant General of J&K Mr Tsewang Tharchin during a state audit advisory board meeting held last month which was attended by other members as well. It was well taken by Mr Tharchin and in fact last year the Principal Accountant General of J&K Mr K P Yadaw visited some waste segregation sheds set up by the Rural Development Department in Beerwah area of Budgam district. I was also accompanying him. I showed him the destruction caused due to illegal mining in Sukhnag river. If such checks and balances are not maintained at different levels, the taxpayers money will continue to be looted. The budget allocated by Govt, instead of benefitting people will lead to disaster and this is already happening. The faulty waste management plants, STPs and waste segregation sheds set up across J&K are turning out to be disastrous.
Dr Raja Muzaffar Bhat is Honorary Member J&K State Audit Advisory Board under the Principal Accountant Generals Office J&K
