Jammu, Feb 6 — Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented the Budget for 2026–27 in the Legislative Assembly, acknowledging fiscal constraints while outlining a roadmap for economic growth, investment and social stability in the region.
“Own tax and non-tax revenues meet only about 25 per cent of our budgetary requirements,” Abdullah told the House, pointing to the heavy burden of salaries, pensions and debt servicing on public finances.
He said revenue collections till December 31, 2025, stood at Rs 10,265 crore from taxes and Rs 4,964 crore from non-tax sources, while nearly 60 per cent of total expenditure was committed to fixed obligations.
“For the third consecutive year, austerity measures have been enforced. We are strengthening debt sustainability by keeping borrowings within approved limits and improving liquidity management,” the chief minister said.
Despite the financial pressure, Abdullah said the Budget seeks to lay “strong foundations for enduring economic growth, social harmony and sustainable prosperity.”
“With deep humility and unwavering resolve, I rise today to present my second Budget as Finance Minister. This is not merely a ledger of figures; it is a fiscal compass charting our path towards a brighter horizon,” he said.
The chief minister said his government aims to transform J&K into a modern and economically vibrant region by creating a business-friendly ecosystem to attract investment and innovation.
“We will turn obstacles into stepping stones and aspirations into achievements,” Abdullah said, urging legislators to work collectively for the region’s development.
He said the Budget was framed after consultations with elected representatives, industry leaders and stakeholders to keep it people-centric, with a focus on infrastructure, public services, youth employment and women’s empowerment.
Referring to setbacks over the past year, Abdullah said geopolitical tensions, the Pahalgam attack and devastating floods in parts of the Jammu region hurt economic activity.
“All sectors, including tourism, handicrafts, horticulture and agriculture, were badly affected, leading to job losses and financial distress for families,” he said.
Abdullah said reforms in the power sector, including expansion of the consumer base and loss reduction measures, were underway to ease financial stress.
He also credited the Government of India for supporting J&K through special assistance schemes.
“The central government has remained cognizant of our difficulties and consistently supported us,” he said, noting that J&K has been brought under the Special Assistance to States for Capital Investment scheme.
Funds under the scheme, he added, will be used for infrastructure projects, hydroelectric development and disaster mitigation works, especially in flood-hit areas.