Budget: J&K gets ₹41,000 crore, Opposition questions reduced allocation

With the central government allocating ₹41,000.07 crore to Jammu and Kashmir in the Union Budget for 2025-26, the Opposition in the UT has questioned the reduction in allocation by around ₹1,000 crore. Additionally, the J&K Police, directly controlled by the Union home ministry since the abrogation of Article 370 and the reorganisation of the erstwhile state, will receive ₹9,325.73 crore, up from ₹8,665.94 crore in 2024-25.

In the Budget presented by Union finance minister Nirmala Sitharaman in the Lok Sabha on Saturday, ₹40,619.30 crore has been allocated as central assistance to meet the resource gap in J&K. ₹279 crore has been allocated as grants towards contribution to the Union Territory Disaster Response Fund and ₹101.77 crore as support for capital expenditure.

The Centre had allocated ₹42,277.74 crore to the UT for the 2024-25 fiscal that was later revised downwards to ₹41,000.07 crore. In the 2023-24 fiscal, the allocation was ₹41,751.44 crore. The allocation for the police is ₹659.79 crore, higher than that of 2024-25 fiscal. The Union home ministry said the fund was for meeting administrative expenditures.

Lieutenant governor Manoj Sinha called the Budget pragmatic for a “developed India that would put the Indian economy on a fast track to ameliorate the socio-economic condition of poor, youth, farmers and women”.

Taking to X, he wrote that the revised tax rate structure is a historic move to bring change in the lives of middle class.

National Conference chief spokesman and legislator Tanvir Sadiq said there were many positive things in the Budget, especially rebate on tax and drugs. “We expect that J&K will be included in the new 50 tourist destinations and given medical tourism preference,” he said, adding that the NC would respond after studying the Budget.

Jammu and Kashmir Pradesh Congress Committee’s chief Tariq Hameed Karra said the Budget ignored J&K. “The Budget focussed on Bihar and Delhi eyeing assembly elections. The Modi government came to power by promising two crore jobs annually but now there is no mention of how many jobs were provided in 10 years or being created across the country,” he said, adding that the Centre should have been more sensitive as the youth of Jammu and Kashmir need special attention

He said the government had promised legal guarantee on MSP and reforms in Fasal Bima Yojana but “nothing fulfilled”.

Peoples Conference chairman and legislator Sajjad Lone questioned the reduction in allocation for J&K. “The proposed allocation to J&K in the Budget is approximately ₹41,000 crore. It is approximately ₹1,000 crore less than the previous allocation. When adjusted for inflation, it is reduced by another ₹2,000 crore to ₹3,000 crore,” he said.

PDP chief whip and legislator Waheed ur Rehman Para said, “Allocations for J&K have considerably declined. At ₹41,000 crore, it is less than ₹42,277 crore allocated in FY 2024-25 & ₹41,604 crore in FY 2023-24. Is the decline justifiable when inflation is soaring?”

PDP vice president and prominent businessman Iqbal Tramboo said there is nothing for J&K in this Budget.

Engineer Rashid-led Awami Ittehad Party said the Budget cut was aimed at punishing the UT people. “The Budget, which slashes allocations by approximately ₹1,000 crore compared to the previous year, is a stark reminder of the government’s misplaced priorities,” said Inam Un Nabi, chief spokesman of the AIP.