Omarnomics: Where growth meets welfare
Jammu, Mar 7: Announcing a slew of welfare measures, including 200 units of free electricity per month to all Antyodaya families, Chief Minister Omar Abdullah Friday presented Rs 1.12 lakh crore J&K budget 2025-26 – maiden for him as the Finance Minister of the Union Territory.
This was also the first budget of an elected government in seven years in J&K and the Chief Minister deftly infused key initiatives aiming at “social and financial expansion” in tandem with his poll promises, prominently 200 units of free power and a pension increase.
On the eve of International Women’s Day, he also proposed free ridership for all women in J&K on government-owned public transport, including e-buses, and enhancement of financial assistance under the Marriage Assistance Scheme from Rs 50,000 to Rs 75,000 for Antyodaya Anna Yojana (AAY) category girls.
Three other high points, in his budget, described as “key initiatives”, aimed at expanding social and financial inclusion, were free ration of 10 kg per person to all AAY beneficiaries starting April 1, 2025, ensuring enhanced nutritional support for the most vulnerable; enhancement in pension amounts, benefitting 10,07,324 individuals across Jammu and Kashmir and exemption of stamp duty on property gifted to blood relatives.
He also announced that the SEHAT App would soon be launched to improve healthcare accessibility.
HEAVILY DEFICIT BUDGET
In the “heavily deficit” yet “growth-oriented budget”, the total gross receipts are estimated at Rs 1,40,309.99 crore, including the provision for ways and means advances and over-draft of Rs 28000 crore and the total gross expenditure Rs 1,40,309.99 crore.
The total net budget estimates for the fiscal year 2025-26 are Rs 1,12,310 crore, excluding the provision for ways and means advances and overdrafts.
There is a decrease as compared to last year’s budget estimates (Rs 1.18 lakh crore) due to reduction in Police budget, migrated to the MHA budget and also because of reduction in repayments.
The expected revenue receipts are Rs 97,982 crore and capital receipts are Rs 14,328 crore.
Similarly, the revenue expenditure is estimated to be Rs 79,703 crore and capital expenditure to be Rs 32,607 crore.
FROM WHERE THE MONEY COMES
The own revenues both tax (19 percent) and non-tax (9 percent) are estimated to be Rs 31,905 crore (28 percent). In addition to this, Rs 41000 crore (41 percent) is to flow as central assistance and Rs 13,522 crore (11 percent) as CSS/PMDP to Jammu and Kashmir, besides 13 percent borrowings and 7 percent ARM/asset monetisation.
WHERE IT GOES
J&K will spend a hefty 43 percent of its budget on salaries (21 percent); pensions (14 percent) and power purchase (8 percent). 29 percent will be expended on capital expenditure; 10 percent on interest payment and 18 percent on “Others.”
FISCAL INDICATORS
The tax and GDP ratio has been projected at 7.5 percent for 2025-26 while the fiscal deficit for the year 2025-26 has been estimated to be 3 percent. This is substantially lower than 5.5 percent in 2024-25 (Revised Estimates). GDP for the year 2025-26 has been projected at Rs 2,88,422 crore, thus showing a growth of 9.5 percent over the previous year.
SECTORAL ALLOCATIONS
As far as sectoral allocations were concerned, the Agriculture and Allied sectors have been allocated Rs 2221.58 crore allocated, an increase of Rs 332.72 crore from the revised 2024-25 allocation; Rural Development Rs 3773.93 crore, an increase of Rs 990.04 crore from the revised 2024-25 allocation; Tourism Rs 390.20 crore, an increase of Rs 121.77 crore; Industries Rs 602.85 crore, an increase of Rs 291.44 crore and Health and Medical sector Rs 1750.50 crore, an increase of Rs 643.71 crore; Education Rs 1,388.97 crore, an increase of Rs 242.75 crore; Sports Rs 152.69 crore, an increase of Rs 36.91 crore; Roads and Bridges Rs 4062.93 crore allocated, an increase of Rs 439.28 crore; Irrigation and Water Supply Rs 2,662.71 crore, an increase of Rs 817.87 crore and Housing and Urban Development Rs 2,761.74 crore, an increase of Rs 823.53 crore.
ROADMAP FOR NEW, PROSPEROUS J&K
Earlier at the very outset of his budget speech, the Chief Minister said that he was acutely aware of the weight of responsibility that came with being the custodian of Jammu and Kashmir’s finances at this crucial juncture.
“This budget is more than just a financial statement—it is a roadmap for a new and prosperous Jammu and Kashmir, reflecting the aspirations of our people and laying a strong foundation for economic growth, social progress, and sustainable development,” he said.
The Chief Minister asserted that the people who gave his government a strong mandate were looking to the government with renewed hope and expectations for an environment that fosters political empowerment, meaningful employment, sustainable development, social inclusivity, and robust economic growth.
COMMITTED FOR RESTORATION OF STATEHOOD
“I assure them that we will serve them with sincerity and fulfil their aspirations for a prosperous and thriving Jammu and Kashmir. The restoration of full statehood is a deeply cherished aspiration of the people of Jammu and Kashmir and our Government remains resolute in working towards its fulfilment,” CM Omar said.
INFRA DEFICITS AND GENEROUS CENTRAL AID
He pointed out that Jammu and Kashmir continued to face significant infrastructure deficits in areas like road connectivity, water supply, sewerage, tourism, and power.
“Addressing these challenges requires substantial financial resources and continued support from the central government. This year, we actively engaged with the central government, resulting in the formation of an expert committee to resolve fiscal issues. I met with the Prime Minister, Union Home Minister, and Union Finance Minister on multiple occasions. I am pleased to share that our efforts have paid off—the central government has approved special assistance for J&K and will support fiscal reforms to enhance revenue and expenditure management,” CM Omar stated.
Elaborating further on this account, he said, “The budget for J&K Police, which was around 11 percent of the allocation, has been migrated to the MHA budget from 2024-25 onward. In addition to this, J&K will receive an extra Rs 5000 crore in grants for 2024-25 and 2025-26. I sincerely thank the Prime Minister, Union Home Minister, and Union Finance Minister for their unwavering support in strengthening J&K’s fiscal health and realising its vision for growth and prosperity.”
He exuded optimism that due to fiscal reforms and central assistance, the fiscal deficit would be reduced, bringing J&K closer to its FRBM target.
“Jammu and Kashmir’s economy is projected to grow at 7.5 percent in 2024-25, with an estimated GSDP growth of 9.5 percent in 2025-26. This momentum will be driven by strategic policy measures, infrastructure development, and business-friendly initiatives,” the Chief Minister said.
Giving details of budgetary proposals in various sectors, he said that in the power sector, J&K would aim to achieve self-sufficiency in power and energy by 2027-28 with 7,500 MW new hydro projects and smart grid investments to ensure a 24X7 power supply.
To further improve power efficiency, the Chief Minister’s Awards will be instituted to recognize outstanding efforts in reducing Aggregate Technical & Commercial (AT&C) losses and conducting energy audits.
Highlighting that major highways and tunnels were under execution, and rail connectivity via the USBRL project was progressing rapidly, CM Omar proposed that 4000 km of roads would be blacktopped in 2025-26 to improve connectivity across J&K.
He said that agriculture and allied sectors were crucial for the livelihoods of most of J&K's population and Holistic Agriculture Development Programme (HADP) had an outlay of Rs 5013 crore until 2027-28 which was reshaping subsistence farming into a commercial agri-economy.
On industrial development, the Chief Minister said that J&K currently had 64 Industrial Estates and 46 more were under development and his government was committed to ensure infrastructure development in these estates.
He said that the government was streamlining SGST reimbursement and turnover incentives. He said to strengthen industry collaboration, the government would constitute an Advisory Committee on Industries, ensuring regular engagement with businesses.
The Chief Minister proposed Rs 50 crore to support financial aid, mentorship and incubation for emerging entrepreneurs in 2025-26. He said that the government would bring a new policy to provide price preference to local MSMEs in public procurement
In the tourism sector, CM said new master plans would be prepared for major tourist destinations like Gulmarg, Pahalgam and Sonamarg.
“J&K’s first National Water Sports Centre at Dal Lake and Basohli shall be established. A water park at Dwara village near Sidra Golf Course under the PPP model shall be developed in Jammu. The budget proposes to constitute a multi-stakeholder Advisory committee in the Tourism and Hospitality sector,” he announced.
Omar also holds the charge of the Tourism Department.
Detailing about initiatives for youth, the Chief Minister said that Mission YUVA would be launched in the next financial year aiming to create 1,37,000 enterprises and to create 4.25 lakh jobs over five years through startups, MSMEs and skilling programmes.
Omar also announced the establishment of Jammu & Kashmir Skill and Entrepreneurship University (J&K SEU) to provide cutting-edge training in technology, healthcare, tourism, renewable energy and traditional crafts.
“To support structured skill development, one lakh youth shall be trained over 5 years under PMKVY 4.0, PM Vishwakarma and other schemes besides reviving the Udaan Scheme. Special focus shall be given on first-generation entrepreneurs, women and youth from remote areas through credit support and market linkage,” he said.
CM said that his government was committed to constructing a state-of-the-art Legislative complex in Jammu.
“An allocation of Rs 50 crore has been proposed in this budget for FY 2025-26. A provision of Rs 50 crore has been proposed in this budget to establish a National Law University in J&K and that Rs 125 crore has been apportioned for state-of-the-art judicial infrastructure across J&K,” he said.
Under disaster management, Rs 39 crore Disaster Mitigation Fund has been proposed in the budget for flood and landslide protection, and GLOF monitoring systems for climate resilience.
Later, the Chief Minister also presented the Supplementary Statement of Expenditure for the year 2024-2025 before the House.
