Centre allocates ₹42k crore for J&K, focus on reducing fiscal deficit

Union finance minister Nirmala Sitharaman on Tuesday allocated ₹42,277.74 crore to Jammu and Kashmir, a hike of 1.2% from last year when the Centre had allocated ₹ 41,751.44 crore for the Union Territory.

The budget tabled before the Parliament provides a special central assistance of ₹17,000 crore for J&K.

“The Union government has agreed to provide for the salary, pension and other costs of Jammu and Kashmir Police for which an allocation of ₹12,000 crore has been made in the annual budget. In addition, a lump sum special grant of ₹5,000 crore as additional central assistance is being provided in the current financial year,” the J&K government spokesman said, adding that with ₹17,000 crore as a special package, the fiscal deficit to GDP ratio of J&K will reduce to 3% in the financial year 2024-25.

“This special package will be part of the overall central assistance which is estimated at ₹67,133 crore during 2024-25. This unprecedented assistance would lead to complete improvement in fiscal position enabling the Government of Jammu & Kashmir to work towards fulfilling the developmental needs and aspirations of the people while maintaining stable fiscal health,” the spokesperson added.

The budget also includes the development of 12 new off-beat tourist destinations, six each in the Jammu and Kashmir divisions.

The budget drew sharp reactions from the political parties who said the region has failed to get any big developmental projects and it also gives nothing for employment generation.

Former J&K chief minister and National Conference vice-president Omar Abdullah said we have important issues in J&K, the biggest one is unemployment which this budget has failed to address.

“Looks like the #JammuAndKashmir budget is a masterclass in Ctrl+C, Ctrl+V! Did someone forget to update 1.18 lakh cr from last year? It’s just shuffling numbers around with no real changes,” National Conference chief spokesman wrote on X.

PDP spokesman Rafeeq Rather said the budget has nothing special for J&K. “The J&K has got nothing significant in the budget which has failed to address many issues the region is grappling with.”

Former city mayor, Junaid Azim Mattu said that J&K doesn’t matter.”

The budget was presented for Andhra Pradesh and Bihar (referring to special assistance) and whatever was left was distributed for the rest of the country. Which state (UT) could be more deserving of a special package than J&K? Wasn’t ‘Naya Kashmir’ all about that? But alas, we have five LS seats and we don’t matter,” he wrote on X.

Congress general secretary Mir Iqbal also termed the budget as ordinary. “The budget K isn’t encouraging at all. Under the BJP government, J&K has always suffered and today’s budget isn’t up to the expectations of people of J&K. People in UT have been ignored and are suffering,” he said.

Meanwhile, Lt Governor Manoj Sinha haled the budget and said it will empower youths in J&K.

“Jammu Kashmir has seized the opportunities of the 21st century and our youth are building a proud and prosperous Union Territory. Budget-2024 with a focus on ‘Employment & Skilling’ and new schemes will give fresh impetus to youth empowerment and it will pave the way for higher participation of women in the workforce,” Sinha said.

Budget allocation for Ladakh rises by 32%

New Delhi The Centre has allocated ₹5,958 crore for the Union Territory of Ladakh in the Union Budget 2024-25 announced on Tuesday, a massive 32% rise from last year’s allotment of ₹4,500 crore.

The Ladakh UT, which was carved out of Jammu and Kashmir after the abrogation of Article 370 in 2019, has received ₹2,035.49 crore for establishment expenditure of the Centre to meet its secretariat-related expenses and establishment of other departments and offices.

The budget has allocated to Ladakh ₹3,922.51 crore for other Central sector expenditure, including agriculture and allied schemes, water supply and sanitation, rural development, power, forestry and wildlife, medical and public health, and education among other departments. (With inputs from PTI)