J&K gets first budget in 7 years, Omar Abdullah unwraps growth boosters

JAMMU: Chief minister Omar Abdullah on Friday presented a Rs 1.12-lakh crore budget for 2025-26, the first by an elected government in J&K in seven years, as he heaped praise on PM Narendra Modi, promised all-round growth and ladled out a salad of sops for disadvantaged groups.
Terming the document a roadmap for growth and a true reflection of people’s aspirations, Omar said J&K was at the cusp of a new era of peace and prosperity, with a semblance of normality returning after over 30 years of turmoil.
Attired in a traditional suit and a skull cap, Omar started his 90-minute budget speech in the assembly in English, with a Persian couplet “Tan Hama Daag Daag Shud–Punmba Kuja Kuja Neham (my entire body is covered with bruises, where should I apply the balm)” amid thumping of benches by legislators of his National Conference (NC).
The last budget was tabled in 2018 under the then PDP-BJP govt in the erstwhile state of J&K, which was accorded Union Territory status following the abrogation of Article 370 on Aug 5, 2019.

Omar, who has retained the finance portfolio with himself, also praised Union home minister Amit Shah and Union finance minister Nirmala Sitaraman for support in various areas. He said the improved environment was contributing to progress, with J&K’s economy expanding from Rs 1,64,103 crore in 2019-20 to Rs 2,45,022 crore in 2023-24. “GDP for 2025-26 is projected at Rs 2,884,22 crore, reflecting a growth of 9.5% over the previous year,” Omar added.
Revealing other key fiscal indicators, the CM pegged the tax-GDP ratio at 7.5% for 2025-26 and fiscal deficit at 3% of J&K’s GDP. “This is substantially lower than 5.5% in 2024-25 (RE). Expected revenue receipts are Rs 97,982 crore and capital receipts Rs 14,328 crore. Similarly, revenue expenditure is estimated to be Rs 79,703 crore and capital expenditure Rs 32,607 crore,” the CM said, focusing on a zero-deficit revenue account budget.
An additional Rs 41,000 crore is to flow as central assistance and Rs 13,522 crore as centrally sponsored schemes and Prime Minister’s Development Package (PMDP). “J&K continues to face significant infrastructure deficits. I met Prime Minister (Modi), home minister (Shah), and finance minister (Sitaraman) on multiple occasions. Our efforts have paid off -- the central govt has approved special assistance for J&K and will support fiscal reforms to enhance revenue and expenditure management,” Omar said.
Marriage assistance for women under the AAY category will be raised from Rs 50,000 to Rs 75,000. Omar topped this up with free bus rides for women. “On International Women’s Day (March 8), I will announce free ridership for women on all govt-owned transport, including e-buses, starting April 1, 2025. This will enhance access to education and employment while ensuring safer, more affordable travel,” the CM said.
Marriage assistance for women under the AAY category will be raised from Rs 50,000 to Rs 75,000. Omar topped this up with free bus rides for women from April to “enhance access to education and employment while ensuring safer, more affordable travel”.
Pensions have been enhanced to Rs 1,250 per month for people above 60yrs, Rs 1,500 for those between 60 and 80, and Rs 2,000 per month for those aged 80 and above. The payouts were last fixed at Rs 1,000 in 2016.
Buoyed by record-breaking 2.36 crore tourist footfalls in 2024, Omar unveiled a slew of initiatives for the sector. “Tourism’s contribution to GSDP will be increased from 7% to 15% in 4-5 years,” the CM said.
Omar’s rivals were not persuaded. PDP said the budget exposed the “gap” between the promises Omar’s NC had made during assembly elections last year and the reality of its governance. BJP dismissed it as a “complete failure”.
By limiting the food and free power benefits only to AAY ration card holders, the govt has excluded a vast majority of the state’s population, PDP argued. Peoples’ Conference chief Sajad Lone described the budget as a “disappointment”. “Same old style of parroting of centrally sponsored schemes with Hindi nomenclature,” Lone said.
(With inputs from agencies)