Daijiworld Media Network - Jammu
Jammu, Feb 6: Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented the Union Territory’s Budget for 2026-27, proposing six free LPG cylinders annually for Antyodaya Anna Yojana (AAY) households, monthly financial support for orphaned children, and incentives for government employees posted in remote areas.
Presenting the Budget in his capacity as Finance Minister, Abdullah projected a total gross expenditure of Rs 1,27,767 crore, comprising Rs 80,640 crore under revenue expenditure and Rs 33,127 crore towards core capital expenditure. Revenue and capital receipts are estimated at Rs 90,018 crore and Rs 23,749 crore, respectively.
The UT’s own tax and non-tax revenues are estimated at Rs 31,800 crore, while Central assistance is pegged at Rs 42,752 crore, along with Rs 13,400 crore from Centrally Sponsored Schemes. The tax-to-GDP ratio for 2026-27 is projected at 6.6 per cent, while the fiscal deficit is estimated at 3.69 per cent.
Abdullah said nearly 60 per cent of the total outlay is committed to salaries, pensions and debt servicing, attributing fiscal stress to limited revenue capacity, geographical challenges and inefficiencies in the power sector. He said the government has undertaken fiscal reforms, austerity measures for the third consecutive year, and debt management initiatives to improve sustainability and transparency.
Despite fiscal pressures, Abdullah said Jammu and Kashmir’s economy is expected to grow at 11 per cent, helping the UT address challenges following the Pahalgam terror attack and recent floods.
Support for poor, education and MSMEs
Among key welfare measures, Abdullah proposed monthly sponsorship of Rs 4,000 through Direct Benefit Transfer for 6,000 orphaned children to support education, nutrition and basic needs. He also announced full fee waivers for students from AAY families studying in government schools (Classes 9-12) and government degree colleges, along with Rs 70 crore for scholarships benefiting over three lakh tribal students.
To boost employment and entrepreneurship, he proposed a self-certification scheme for MSMEs, offering a single in-principle approval with a three-year grace period. Incentives for ailing MSMEs will also be extended at par with new industrial units to preserve jobs.
Sector-wise allocations
Under capital expenditure for 2026-27, major allocations include Rs 3,456 crore for the rural sector, Rs 2,809 crore for Housing and Urban Development, Rs 1,866 crore for Health and Medical Education, Rs 1,718 crore for Power Development, Rs 1,513 crore for School and Higher Education, and Rs 472 crore for Tourism and Youth Affairs.
Agriculture push
Highlighting agricultural reforms, Abdullah announced plans to set up seven milk processing plants with a combined capacity of one lakh litres per day at a cost of Rs 770 crore, benefiting around 11 lakh dairy farmers. A 15 per cent top-up subsidy under the PMFME scheme and a 25 per cent subsidy for micro and sprinkler irrigation were also proposed. An Aromatic and Medicinal Plant Mission with an outlay of Rs 150 crore was announced.
Tourism and health initiatives
The Chief Minister proposed Rs 180 crore for modernising Amarnath pilgrimage infrastructure and reaffirmed the government’s commitment to developing new tourism destinations. In healthcare, he announced full-fledged Emergency Medicine Departments in all Government Medical Colleges, cath labs at GMC Rajouri, Baramulla and Doda, dedicated emergency hospitals at Uri and Poonch, and bullet-proof ambulances for border districts.
Abdullah said the Budget reflects the government’s commitment to transforming Jammu and Kashmir into a modern, inclusive and economically vibrant region.