Srinagar | WTNS | Feb 01:The Union Government on Saturday proposed an allocation of Rs 41,000.07 crore to the Jammu & Kashmir Union Territory for the financial year 2025-26.

As part of fund transfers to Union Territories, the Union Finance Ministry today proposed an allocation of Rs 41,000.07 crore to Jammu & Kashmir Union Territory in the Union Budget for 2025-26.

As per the break-up of financial assistance for Jammu & Kashmir, Rs 40,619.30 crore has been kept as central assistance for J&K to bridge its resource gap. An additional Rs 279 crore has been allocated as grants towards the contribution to the Union Territory Disaster Response Fund, and Rs 101.77 crore to meet resource gap funding for infrastructure projects.

The figures available show that J&K’s allocation for the next fiscal is almost Rs 604 crore less than the allocation for 2023-24. As per revised estimates for 2024-25, J&K’s allocation has been reduced by Rs 1277 crore. While the allocation, as per budget estimates, was Rs 42,277.74 crore, it has been revised to Rs 41,000.07 crore.

It is worthwhile to mention that Jammu & Kashmir is heavily dependent on Central assistance in Union Territories. Chief Minister Omar Abdullah had himself met Union Finance Minister Nirmala Sitharaman to seek additional assistance of Rs 6000 crore.

As per the Union Budget, Rs 4692.15 crore has been allocated for the Union Territory of Ladakh for 2025-26. Of this, Rs 2450 crore has been kept as revenue expenditure and Rs 2242.15 crore as capital expenditure.

Lieutenant Governor Manoj Sinha hailed the Union Budget for 2025-2026, presented by the Finance and Corporate Affairs Minister Nirmala Sitharaman, in Parliament on Saturday.

The Lieutenant Governor has posted on X: “My heartfelt thanks to Hon’ble Finance Minister Smt. Nirmala Sitharaman Ji for a pragmatic Budget for Viksit Bharat. Grateful to Hon’ble PM Shri Narendra Modi Ji for putting economy on a fast-track and bold development initiatives for poor, youth, farmers and women.

Big boost to the middle class. The revised tax rate structure is a historic move to bring change in the lives of middle class. Hon’ble PM has also provided huge relief to taxpayers by raising the TDS limit on rent, enhancing social security and formalising the gig economy.

Budget 2025-26 reflects India’s growing aspiration for accelerated growth and to stimulate private sector investments. The focus on agricultural growth with various initiatives including Agri District Programme seeks to translate the vision of rural prosperity and social equity.

Meanwhile The Centre proposing allocation of Rs 41000.07 crore to Jammu & Kashmir in the 2025-26 Union Budget evoked a mixed response from the business community in the Union Territory.

Some traders welcomed key initiatives like tax relief and MSME support, while others voiced concerns over reduced financial allocations and the absence of a special economic package to revive the struggling industrial sector.
India is the fastest-growing among all major global economies and this budget will further boost infrastructure sector, MSMEs, energy sector, innovation, employment generation, and push transformative reforms in key sectors for more inclusive and more sustainable growth.”

The ruling National Conference on Saturday expressed satisfaction over some of the announcements made in the Union Budget 2025 while the other parties including Congress, Peoples Conference and CPI (M) criticised the financial plan.