Union budget and J&K
On paper, the Union Budget for 2026–27 appears generous to Jammu and Kashmir. An allocation of Rs 43,290 crore, which is Rs 2,000 crore more than the revised estimate for the current year, suggests continuity and incremental support. Yet across markets in Srinagar, Pahalgam and Jammu, the mood is anything but reassured. For traders, hoteliers and transporters still counting losses after last year’s Pahalgam terror attack, the numbers simply do not add up.
The Deputy Chief Minister Surinder Choudhary has urged the Centre to provide a “special, state-like package” for Jammu and Kashmir. And the health and education minister Sakina Itoo said allocations for Jammu and Kashmir were inadequate. She flagged rising unemployment, worsening healthcare shortages, and farmers’ distress, calling for urgent investment and a one-time KCC loan waiver, saying the budget failed to adequately tackle these core challenges.
The months following the Pahalgam attack saw tourism, regarded as the backbone of J&K’s fragile economy, come to a near standstill. Hotel bookings were cancelled en masse, transport services idled, and small traders who depend on seasonal footfall were pushed into debt. This was compounded by heightened India-Pakistan tensions after Operation Sindoor and, later, by natural disasters such as cloudbursts, floods and relentless rain, that further disrupted livelihoods.
Against this backdrop, the budget’s J&K allocation feels not sufficient. While funds have been earmarked for disaster response, flood recovery and capital expenditure, there is no visible attempt to directly compensate those whose incomes vanished overnight. For a region repeatedly exposed to both conflict and climate shocks, a standard fiscal template is insufficient.
Industry representatives have been careful in their criticism. Many acknowledge the budget’s broader national balance and its emphasis on infrastructure. But their disappointment stems from a deeper concern: that the budget is not focussed enough on enabling employment on a scale needed in the union territory. It has to have something substantial for traders in the Valley and Jammu who have survived three bad seasons in a row.
For Jammu and Kashmir, economic recovery is inseparable from stability, and stability cannot rest on security measures alone. It must be underpinned by confidence among tourists, investors and, most importantly, among local businesses. This year’s may be balanced on paper, but for many in J&K, it feels that the centre needs to do a bit more for the union territory.
