CM Omar Abdullah unveils Rs 1.27 lakh Cr budget for J&K with focus on growth and welfare

Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented a Rs 1.27 lakh crore Budget for 2026-27 in the Legislative Assembly, outlining a roadmap for sustainable growth, social harmony and economic revival in the Union Territory.

Holding the finance portfolio, Abdullah said the Budget aims to transform Jammu and Kashmir into a modern and economically vibrant region through investment, innovation and participatory governance.

The total gross receipts and expenditure have been estimated at Rs 1,27,767 crore , including Rs 14,000 crore towards ways and means advances and overdraft. The net Budget size stands at Rs 1,13,767 crore, with Rs 80,640 crore for revenue expenditure and Rs 33,127 crore for capital expenditure .

For 2026-27, revenue receipts are projected at Rs 90,018 crore and capital receipts at Rs 23,749 crore. The Union Territory’s own revenues are estimated at Rs 31,800 crore, while central assistance is pegged at Rs 42,752 crore and Centrally Sponsored Schemes at Rs 13,400 crore.

The fiscal deficit is estimated at 3.69 per cent , compared to 3.63 per cent in 2025-26 (RE). The tax-to-GDP ratio is projected at 6.6 per cent. Jammu and Kashmir’s GDP is expected to grow by about 9.5 per cent , rising from Rs 2.88 lakh crore in 2025-26 to Rs 3.15 lakh crore in 2026-27.

Abdullah said geopolitical factors, the Pahalgam terror attack and floods in parts of Jammu region impacted tourism, horticulture, handicrafts and agriculture, causing job losses and financial distress.

He noted that nearly 60 per cent of total expenditure is committed to salaries, pensions and debt servicing, while the UT’s own revenues meet only about 25 per cent of budgetary needs. The government has enforced austerity measures for the third consecutive year and is strengthening debt sustainability.

The Budget gives priority to welfare measures, including full fee waivers for economically weaker students from Class 9 to college , six free LPG cylinders for eligible households, monthly support for orphan children, scholarships for tribal students and free government transport for persons with disabilities.

In agriculture and allied sectors, the Budget proposes crop insurance for apple, saffron, mango and litchi, expansion of storage facilities, promotion of micro and sprinkler irrigation, medicinal plant cultivation and livestock genetic improvement labs in every district.

For education and youth empowerment, the government proposed JK e-Pathshala DTH channels for Classes 1-12, modernisation of anganwadi centres, indoor sports facilities in government schools and priority hiring of local youth in subsidised industries.

Abdullah said the government is pursuing power sector reforms and acknowledged central support under the Special Assistance to States for Capital Investment scheme, which will be used for infrastructure development, hydropower projects and disaster mitigation works, particularly in flood-affected areas.

Calling the Budget a roadmap for development, Abdullah urged legislators to work collectively for the region’s progress and said it was prepared after wide consultations to remain people-centric.