Srinagar, February 6: Jammu and Kashmir Chief Minister Omar Abdullah presented a budget of ₹1,13,767 crores for the fiscal year 2026-27 in the assembly on Friday. He emphasized that this financial plan aims to establish a strong foundation for sustainable development, social harmony, and economic prosperity in the Union Territory.
CM Abdullah stated that his government is committed to transforming Jammu and Kashmir into a modern, progressive, and economically vibrant region by promoting investment, innovation, and participatory governance.
With deep humility and unwavering resolve, he remarked, “Today, I present my second budget as Finance Minister. It is my privilege to be entrusted with shaping the financial future of my land.”
While presenting the budget, he described it as a roadmap for development, asserting that it is not merely a tally of figures but a financial guide that lays a robust foundation for sustainable economic growth, social harmony, and prosperity. The Chief Minister urged the members of the assembly to collaborate for the region’s development.
“As we embark on this shared journey, I invite every member of the house to come together and work towards creating a strong and prosperous Jammu and Kashmir,” he said.
He reiterated the government’s commitment to making Jammu and Kashmir progressive and economically vibrant. Turning obstacles into opportunities is a top priority. The government is creating a business-friendly environment to attract investment and innovation. This budget was prepared after extensive consultations with elected representatives, industrialists, and stakeholders to ensure it serves the public interest.
He acknowledged that geopolitical factors, the Pahalgam terrorist attack, and devastating floods in the Jammu region have impacted economic activities. Sectors such as tourism, handicrafts, horticulture, and agriculture have suffered, leading many families to face job and income crises. The budget focuses on inclusive and sustainable development through strategic investments in infrastructure, public services, and governance. The government’s goal is to create new opportunities for youth and women.
CM Abdullah noted that only 25% of the Union Territory’s budgetary needs are met through tax and non-tax revenue. As of December 31, 2025, total revenue collection from taxes was ₹10,265 crores, and from non-tax sources, it was ₹4,964 crores. Approximately 60% of total expenditure goes towards salaries, pensions, and debt repayments, and the government is taking proactive steps to manage debt and curb unnecessary expenses.
He stated that the government is strengthening debt sustainability by keeping borrowing within approved limits and improving liquidity management. Cost-cutting measures have been implemented for the third consecutive year. Reforms in the power sector are underway to reduce financial pressure, including expanding the consumer base and minimizing losses.
The Chief Minister also acknowledged the central government’s support in addressing financial challenges. He mentioned that the central government is aware of their difficulties and has consistently provided support through special assistance. Jammu and Kashmir has been included in the capital investment scheme for states to promote investment and economic development in the region. Funds under this scheme will be used for infrastructure development, hydroelectric projects, and disaster relief efforts, especially in flood-affected areas. A roadmap will be announced in the coming months to regularize daily wage workers and recognize their contributions and services.
Highlighting the achievements and plans of the budget, he mentioned that over 3.21 lakh houses have been completed under the Prime Minister’s Housing Scheme, with an additional 14,000 homes under construction. An international film festival will be held in Jammu and Kashmir in 2026. Additionally, 2,963 women have benefited from the ‘Lakhpati Didi’ scheme. New cultural centers will be established throughout the UT, and a new framework for MSMEs has been developed.
He announced that two AYUSH hospitals will open in the next financial year, and AIIMS Kashmir will commence operations in 2026. To improve healthcare services, 200 new e-buses will be procured, PET scan facilities will be expanded, and mobile medical units will be enhanced. Vocational education will be introduced in 554 schools. This budget is designed to accelerate Jammu and Kashmir’s development, improve employment and healthcare services, and ensure inclusive progress across all sectors.