Jammu, Feb 6: Seemingly with an eye on local bodiesí polls, Chief Minister Omar Abdullah on Friday presented zero-deficit J&K budget 2026-27, with an outlay of Rs 1,13,767 Cr, up by Rs 3000 Cr as compared to the outlay for 2025-26, in the J&K Legislative Assembly, rolling out a slew of ìwelfare measuresî and freebies.
Chief Minister, who is also the Finance Minister of J&K, in his second budget, christened as ìpeople-centricî, announced six ìmega announcementsî that also included financial support for AAY families for 6 free LPG cylinders per year thus fulfilling National Conferenceís another poll promise. Though in its manifesto, it had promised to provide 12 cylinders free of cost per year to Economically Weaker Sections (EWS).
Five other mega announcements included development of two emergency and trauma hospitals at Uri and Poonch; free bus services for differently abled passengers in public transport; DBT-based financial reimbursement of fees for AAY students from Class 9 to 12 and for college students; and sponsorship support to 6,000 orphans under non-institutional care.
With regard to the issue of regularisation of daily rated workers, the Chief Minister said that the recommendations of the high level committee constituted would be implemented to find a just and humane solution for their structured and phase wise regularisation within the framework of law and fiscal responsibility.
Among 32 major welfare initiatives announced by the Chief Minister also include bullet-proof ambulances for border districts of Poonch and Tangdar who suffer during cross-border firing and conflict; extending free ridership for women in Smart city buses and other Government transport; procurement of additional 200 e-buses.
SUBSTANTIAL JUMP OF RS 3000 Cr IN OUTLAY FOR 2026-27
In terms of budget specifics vis-‡-vis sectoral allocations, out of overall budget outlay of Rs 1,13,767 Cr, the capital outlay is Rs 33,127 Cr which marks a substantial jump in terms of Rs 3000 Cr over past year, mainly on account of inclusion of J&K in SASCI. Under this programme, till now J&K has received Rs 3200 Cr. This is a massive jump within one year. If you look at states comparable to J&K size, they are still under Rs 600 or 700 Cr.
In terms of administrative sector, covering GAD and other departments in the budget, the outlay is reduced to Rs 1490 Cr to Rs 964 Cr, mainly on account of J&K Police and Home Department as that burden is now shouldered by the Union government.
In infrastructure sector, the outlay has increased from Rs 10,300 Cr to Rs 11300 Cr, with a major jump of Rs 1000 Cr. Even within that the Power Development Department is slightly on lower side because J&K has paid all the equity that was due on part of J&K in current year itself. Therefore, no equity is to be paid in the next financial year.
Social sector outlay is Rs 4665 Cr while in case of economic sector, the outlay has been increased from Rs 6200 Cr to 6518 Cr, especially for agriculture, horticulture etc. For finance sector, the outlay has increased from Rs 7700 Cr to Rs 9600 Cr, mainly on account of higher repayments.
BUDGET FOR 2026-27
For 2026- 2027, the total gross receipts are estimated at Rs 1,27,767 Cr, including the provision for ways and means advances and over-draft of Rs 14,000 Cr. Given these receipts, the total gross expenditure is estimated to be Rs 1,27,767 Cr.
ìThe total net budget estimates for the fiscal 2026-27 are Rs 1,13,767 Cr excluding the provision for ways and means advances and overdraft. This includes Rs 80,640 Cr and Rs 33,127 Cr under Revenue Expenditure and Capital Expenditure respectively under Budget Estimates 2026-27 and Rs 90,018 Cr and Rs 23,749 Cr as expected Revenue Receipt and Capital Receipt respectively under Budget Estimates 2026-27,î the Chief Minister announced.
The own revenues both tax and non-tax are estimated to be Rs 31,800 Cr. In addition to this, Rs 42,752 Cr is to flow as central assistance and Rs 13,400 Cr as CSS to Jammu and Kashmir.
GSDP for 2026ñ27 has been projected at Rs 3,15,822 crore, reflecting 9.5 percent growth, CM Omar shared.
Chief Minister in his address mentioned that the year 2025 had been nothing but challenging for Jammu and Kashmir and for the entire nation.
ìAt national level, we see our growth path suddenly challenged by geo-political challenges. While the national economy is accelerating at 6ñ8 percent growth rate, we see our access to global markets being constrained by trade frictions. Even in Jammu and Kashmir, just as our economy was consolidating with renewed vigour, the barbaric terrorist attack at Pahalgam and its aftermath shocked us. The devastating floods in August and September have severely battered the Jammu region,î he stated.
He pointed out that those two calamities further accentuated the fiscal challenges before J&K.
ìAll the sectors of economic activity, including tourism, handicrafts, horticulture and agriculture are badly affected. There is a substantial loss of jobs and business in all sectors, leading to financial stress on the families,î he said.
He said the 2026-26 budget would lay a strong foundation of enduring economic growth, social harmony and sustainable prosperity.
He said that his government was committed to transforming J&K into a modern, progressive and economically vibrant region.
ìThe Budget carries a wide range of people-centric initiatives aimed at delivering immediate relief, strengthening social protection, promoting inclusive growth and ensuring equitable development across all regions of Jammu and Kashmir,î he said.
A Poetic beginning and visionary commitment
Chief Minister Omar Abdullah began his budget speech with a couplet:
Safar Taveel Hai, Bhoj Bhi Bari Hai.
Par Har Surat, Yeh Safar Jaari Hai.
Jaari HaiÖ
Opening his address, the Chief Minister said, ìWith deep humility and unwavering resolve, I rise today to present my Second Budget as Finance Minister. It is a privilege to be entrusted with the responsibility of shaping the financial future of our land. This Budget is not merely a ledger of figures; it is a fiscal compass charting our path towards a brighter horizon. It lays strong foundations for enduring economic growth, social harmony, and sustainable prosperity. As we embark on this shared journey, I invite every Honíble Member of this august House to come together and work collectively to build a strong and flourishing Jammu and Kashmir.î
Addressing the House, the Chief Minister said that beyond sector-wise allocations, the Budget carries a set of focused measures that will directly touch the lives of citizens, particularly the most vulnerable sections. ìThese initiatives reflect our commitment to social justice, targeted welfare and long-term empowerment,î he said.
Boost to handicrafts, trade promotion and Unity mall
To strengthen the livelihood of artisans and promote Jammu and Kashmirís globally renowned crafts, the Chief Minister announced enhanced budgetary support to the Jammu and Kashmir Trade Promotion Organisation (JKTPO). Regular BuyerñSeller Meets will be organised to create direct market linkages between local artisans and national and international buyers, improving branding, market access and income opportunities.
The Chief Minister also informed the House that financial support of up to Rs 200 Cr has been received for construction of the Unity Mall, envisioned as a permanent Crafts Bazaar and platform for local products, handicrafts, handlooms and traditional enterprises from across the country.
CM announced that J&K has been brought under Special Assistance to States for Capital Investment (SASCI) scheme by central government which offers 50 year interest free loan for taking up infrastructure projects saying that additional Rs 1431 Cr has been provided under the untied component for disaster mitigation and restoration works. Under the third component of the (SASCI), Jammu and Kashmir has been allocated Rs 210 Cr, which will be leveraged to provide the UTís share for eligible Centrally Sponsored Schemes.
Digital financial governance and institutional capacity building
Highlighting rapid progress in Financial Management Reforms, the Chief Minister said all Centrally Sponsored Schemes have smoothly transitioned from Treasury mode to SPARSH (State Payment, Receipt and Accounting System) mode. Aadhaar-based payments have been mandated for all DBT schemes.
Under SPARSH rollout, 151 SNA accounts have been opened with RBI, the Cyber Treasury is operational, sanctions exceeding Rs 2,500 Cr have been received, and over 23,000 bills have already been processed.
The Chief Minister proposed modernisation of the Accountancy Training Institutes at Srinagar and Jammu at a cost of Rs 10 crore, and informed that a proposal for availing Rs 350 crore under SASCI incentives has been submitted, placing J&K among leading States/UTs in transparent and citizen-centric financial governance.
Incentives for employees in remote and hardship areas
Acknowledging persistent vacancies in far-flung and difficult areas affecting service delivery in health, education and administration, the Chief Minister said the Government is actively contemplating a structured incentive scheme for employees posted in remote and hardship zones to improve retention and ensure equitable access to public services.
Priority employment for local youth in industries
The Chief Minister announced that all industrial units availing Government concessionsówhether subsidy, electricity or landówill be required to give due priority to employment of local youth, ensuring industrial growth translates directly into jobs and income opportunities for residents of Jammu and Kashmir.
Major support for horticulture and agriculture
To protect horticulturalists from climate risks, the Chief Minister announced implementation of the Restructured Weather Based Insurance Scheme (RWBIS) for Apple (traditional and high-density), Saffron, Mango and Litchi, with total sum insured of Rs 6,594.93 crore.
CM said that Holistic Agriculture Development Programme (HADP) scheme has ushered diversification of agri-economy and the scheme shall continue to boost agriculture. CM said that cultivated area had gone up from 12.71 lakh Ha to 13.50 lakh Ha while urging people to benefit from HADP &High Density Plantation schemes.
He also highlighted expansion of Controlled Atmosphere (CA) storage infrastructure. Currently, 68 CA stores with capacity of 2.92 LMT are operational against the requirement of 6.00 LMT. Additional CA capacity of 15,000 MT is being added in 2025ñ26, while 38,000 MT is targeted in 2026ñ27.
To ensure balanced regional dispersal, top-up subsidy for CA storage will focus on districts other than Pulwama and Shopian. The Government plans establishment of 40 CA stores with investment of Rs 1,400 Cr, including subsidy support of Rs 600 crore from 2026ñ27.
The Chief Minister also announced 25 percent top-up subsidy for micro and sprinkle irrigation, earmarking Rs 116.86 Cr, benefiting farmers across 3 lakh hectares and enhancing water use efficiency by 60ñ80 percent.
An Aromatic and Medicinal Plant Mission with an outlay of Rs 150 Cr was announced, with Rs 10 Cr allocated in the next financial year.
Strengthening livestock sector through genetic improvement
To preserve high genetic breeds in livestock, the Chief Minister announced establishment of one Embryo Transfer Technology (ETT) Lab in every district with phased investment of Rs 65 Cr, following import of Dorper and Texel sheep from Australia and bulls from the USA.
Rural development and ODF-plus sustainability
The Chief Minister proposed strengthening rural sanitation and livelihoods through convergence of Central schemes, with special focus on achieving ODF-Plus status across rural J&K.
From 2026ñ27 onwards, District Capex funds will be leveraged for professional operation and maintenance of rural sanitation infrastructure, ensuring sustainability and improved public health outcomes.
Shri Amarnath Ji Yatra infrastructure modernisation
Reaffirming commitment to pilgrim safety, the Chief Minister said over 200 infrastructure works were completed during 2025ñ26 for Shri Amarnath Ji Yatra. He proposed further modernisation with an outlay of Rs 180 Cr in 2026ñ27 in partnership with the Border Roads Organisation to improve connectivity, emergency response and logistical support.
Education initiatives: JK e-Pathshala and indoor games in schools
The Chief Minister announced launch of the JK e-Pathshala DTH Channel, a free-to-air platform delivering curriculum-aligned lessons from Class 1 to 12 without internet dependency. Over 300 educational videos have already been produced, with dedicated digital studios established.
From next year, class-specific channels will also be developed.
Indoor games facilities will be introduced in all Government schools to promote holistic development, with Rs 18 Cr earmarked.
Strengthening Anganwadi infrastructure
The Government will upgrade 1,000 Anganwadi Centres into modern Bal Vidyalayas with improved learning spaces and safety standards, at a cost of Rs 72,000 per centre.
Additionally, 127 new Anganwadi Centresóone in each CDPO blockówill be constructed to bridge infrastructure gaps.
Tribal welfare and livelihood promotion
An outlay of Rs 70 Cr was proposed for scholarships benefiting over 3 lakh tribal students, covering Pre-Matric and Post-Matric Scheduled Tribe learners.
To promote forest-based livelihoods, 100 Van Dhan Vikas Kendras will be set up with Rs 15 Cr. Tribal Home Stays will be supported with Rs 5 lakh per unit, alongside a pilot artisan branding platform with Rs 50 lakh.
Major healthcare strengthening and cancer control strategy
The Chief Minister announced commissioning of the extension block of Lal Ded Hospital, Srinagar, costing Rs 118 Cr, adding 108 beds and NICU facility, along with introduction of IVF services.
Construction of a 249-bedded Mother and Child Care Hospital at GMC Anantnag will begin in 2026ñ27.
Emergency Medicine Departments will be established in all Government Medical Colleges over the next two years.
PET scans shall be installed at GMC Srinagar and GMC Kathua.
Cardiology services will be expanded with Cath Labs at GMC Rajouri, Baramulla and Doda, with an outlay of Rs 30 Cr.
Recognising rising cancer incidence, the Government will roll out a Cancer Control Strategy in collaboration with NITI Aayog and ICMR, focusing on prevention, early diagnosis, improved treatment, and a population-based cancer registry.
Two dedicated Emergency and Accident Hospitals will be established at Uri and Poonch, along with procurement of bullet-proof ambulances for border districts.
Social Protection: Fee waivers, orphan sponsorship and free LPG cylinders
As a major step for educational equity, full fee waiver will be provided to all students from AAY families studying in Government Schools (Class 9ñ12) and Government Degree Colleges (UG level), not covered under other scholarships.
A Sponsorship Scheme covering 6,000 orphan children was announced, providing Rs 4,000 per month through DBT.
To reduce household energy burden, the Chief Minister proposed provision of six free LPG cylinders per year to all AAY households in Jammu and Kashmir.
CM said that assistance under the marriage assistance scheme had been increased from Rs 50000 to Rs 75000 per beneficiary and that the eligibility condition of 8th pass was removed to benefit girls belonging to all poor families.
Commending the Budget to the House, the Chief Minister said, ìThis Budget strengthens welfare measures, accelerates infrastructure development, improves productivity and ensures a more prosperous and inclusive Jammu & Kashmir.î
ìWith these words, I commend the Budget for the financial year 2026ñ27 of Jammu and Kashmir to this august House for consideration,î he concluded.
Chief Minister announced development of new world class tourist destinations in collaboration with Ministry of Tourism, Government of India. He said despite the debacle due to the Baisaran incident which affected tourism, about 1.61 Cr tourist visits were recorded during the current year. He said that Government is working on protecting the fragile eco-system at tourist destinations by investing in construction of Sewage Treatment Plants and solid waste management.
He said that an International Film Festival is being planned to be held shortly.
CM also spoke about the success of Mission YUVA, a flagship initiative to promote entrepreneurship and generate employment among the educated youth saying that 7000 persons had been onboarded on the App with 55000 DPRs prepared, 16000 applications sanctioned, 8000 budding entrepreneurs trained announcing that the Government is well poised to scale up this scheme to benefit youth and women.
Chief Minister also presented the supplementary statement of expenditure for the year 2025-26 before the House.
With regard to fiscal indicators, he informed that the tax/GDP ratio was projected at 7.5 for 2025-26. The tax/GDP ratio is projected at 6.6 percent for 2026-27.
Fiscal deficit for the year 2025-26 was estimated to be 2.98 percent. This was substantially lower than 5.5 percent in 2024-25 (RE). Fiscal deficit for the year 2026-27 is estimated to be 3.69 percent. This is substantially higher than 3.63 percent in 2025-26 (RE).
GDP for the year 2025-26 had been projected at 2,88,422 Cr, which showed a growth of 9.5% over the previous year. GDP for the year 2026-27 has been projected at Rs 3,15,822 Cr (indicative nominal GDP), which shows a growth of 9.5 percent over the previous year.
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