Jammu & Kashmir
Jammu & Kashmir Budget 2026-27
- 07 Feb 2026
- 4 min read
Why in News?
On 6 February 2026, Jammu and Kashmir Government Chief Minister and Finance Minister Omar Abdullah presented the Union Territory’s annual budget for the fiscal year 2026–27 in the Legislative Assembly.
Key Points:
- Macro-Economic Aggregates & Fiscal Position: The total budget outlay for 2026-27 is estimated at ₹1,27,767 crore.
- Gross Budget Estimates: ~₹1,27,767 crore (including advances and overdrafts).
- Net Budget Estimates: ₹1,13,767 crore (excluding overdrafts/Ways & Means).
- Revenue Expenditure: ~₹80,640 crore.
- Capital Expenditure: ~₹33,127 crore.
- Revenue Structure
- Own Revenues: ~₹31,800 crore estimated from tax and non-tax sources.
- Central Assistance: ~₹42,752 crore, plus ₹13,400 crore under Centrally Sponsored Schemes (CSS).
- Projected GSDP Growth: ~9.5%.
- GSDP Growth: Projected at 9.5%, with the nominal GSDP expected to reach ₹3,15,822 crore.
- Fiscal Deficit: Targeted at 3.69% of GSDP, aligning with the FRBM Act guidelines.
- Sectoral Allocations (Top Priorities):The budget follows a "Bottom-Up" approach, prioritizing rural infrastructure and human capital.
- Infrastructure & Roads: Allocated ₹6,528 crore. Key projects include the Z-Morh Tunnel and connecting "unconnected" habitations under PMGSY.
- Health & Medical Education: Allocated ₹1,866 crore (Capital). A major milestone is the scheduled commissioning of AIIMS Awantipora (Kashmir) by June 2026.
- Agriculture & Allied Sectors: Allocated ₹1,878 crore. The focus remains on the Holistic Agriculture Development Programme (HADP), aiming to create 2.87 lakh jobs in the sector.
- Education: Earmarked ₹1,513 crore (Capital) to implement the National Education Policy (NEP) 2020 and upgrade 2,000 schools into "Smart Schools."
- Major Welfare Initiatives & Social Security:The Chief Minister announced 32 New Welfare Measures aimed at the most vulnerable populations.
- AAY Support: Six free LPG cylinders per year for Antyodaya Anna Yojana families.
- Education for All: Full tuition fee waiver for AAY students in Classes 9–12 and Government Degree Colleges.
- Marriage Assistance: The State Marriage Assistance Scheme (SMAS) grant increased to ₹75,000.
- Orphan Support: A monthly stipend of ₹4,000 for orphans under non-institutional care via DBT.
- Transit Accommodation: Completion of 6,000 transit flats for Kashmiri Migrant employees under the PM Development Package.
- Power Sector Reforms: J&K faces significant challenges in Transmission & Distribution (T&D) losses.
- Smart Metering: The budget aims for 100% smart metering in urban areas by December 2026 to curb AT&C losses.
- Generation: Funding provided to expedite the 850 MW Ratle and 624 MW Kiru hydroelectric projects via the Chenab Valley Power Projects (CVPPPL).
- Tourism as an Economic Pillar: Tourism is recognized as a key driver of economic growth and employment:
- Proposals for Rs 180 crore allocation for Amarnath Yatra infrastructure.
