J&K’s First Budget Since Article 370 Presented by Omar Abdullah

Jammu and Kashmir Chief Minister Omar Abdullah presented the Union Territory’s first budget on Friday since the abrogation of Article 370.

Abdullah stated that J&K is on the “brink of a new era of peace and prosperity,” with a sense of normalcy gradually returning after more than three decades of unrest.

While delivering the budget speech, he acknowledged the support of Prime Minister Narendra Modi, Union Home Minister Amit Shah, and Union Finance Minister Nirmala Sitharaman in various sectors.

The last budget session in J&K was held in 2018 under the PDP-BJP government before the erstwhile state was reorganized into a Union Territory on August 5, 2019, following the revocation of Article 370 and the separation of Ladakh as a distinct UT.

Key Budget Highlights

1. Youth and Women Empowerment, Regional Balance, and Statehood Restoration
   Abdullah emphasized that the budget prioritizes youth and women empowerment, reducing regional disparities, and working towards the restoration of statehood.
2. Agriculture and Rural Economy
   A total of ₹815 crore has been allocated to the agriculture sector, expected to generate 2.88 lakh jobs. The state plans to promote a two-crop pattern, expand horticulture, and strengthen the wool processing and leather tanning industries to stimulate the local economy, ANI quoted Abdullah as saying.
3. Tourism Development
   With ₹390.20 crore set aside for tourism, the government aims to boost homestays, introduce water sports, and develop Sonmarg into a winter sports hub. Additionally, Jammu will get a new water park in Sidhra, while Basholi is set to become an adventure tourism destination.
4. Transparency and Welfare Initiatives
   Abdullah reaffirmed the government’s commitment to transparency in welfare schemes, with a focus on agriculture, tourism, and local industries.
5. New Film Policy and Infrastructure Expansion
   The government plans to launch a new film policy to position J&K as a prime destination for film production and eco-tourism. Additionally, 500 new Panchayat Ghars will be constructed to enhance local governance infrastructure.
6. Financial Discipline and Budget Allocation
   Abdullah revealed that 70% of the budget is allocated to salaries, placing a significant financial burden on the Union Territory. He acknowledged high Administrative, Technical, and Non-Commercial (ATNC) losses and rising state debt but assured that borrowing remains within prescribed limits to maintain financial stability.
7. Industrial Growth and Promotion of Local Products
   Plans are underway to establish 64 industrial estates while addressing traders’ concerns with a new policy offering price preferences. Efforts to promote Pashmina and other regional products include obtaining Geographical Indication (GI) tags for seven additional items.
8. Healthcare Improvements
   The budget includes provisions for two new AIIMS institutions and ten fully-equipped nursing colleges. Additionally, a ₹5 lakh health insurance scheme will be introduced for all residents, alongside the expansion of telemedicine services across J&K.
9. Enhanced Medical Infrastructure
   To strengthen healthcare facilities, three new Cath Labs will be established, MRI machines will be installed in all government hospitals, and dialysis services will be made available in every district hospital.
10. Revenue and Financial Estimates
    Abdullah highlighted that J&K’s own tax and non-tax revenue is projected at ₹31,905 crore. Additionally, the Union Territory expects ₹41,000 crore in central assistance and ₹13,522 crore under the Centrally Sponsored Schemes (CSS) and the Prime Minister’s Development Package (PMDP).