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In a significant announcement of Budget 2025-26, that has generated both hope and controversy in the region, the Jammu & Kashmir Union Territory government presented its highly awaited Budget 2025-26 this March. This comprehensive financial plan, which aligns projected revenue and expenditures at Rs. 1,12,310 crore and aims for a commendable 9.5% growth in GSDP, is being praised by supporters as a daring move toward inclusive growth, with some possible fiscal risks.
Central to the new budget is an aspirational strategy for modernizing essential sectors. For instance, agriculture is slated to benefit from a substantial investment through the Holistic Agriculture Development Programme, which allocates Rs. 5,500 crore over five years. This initiative aims not only to increase arable land and promote double cropping but also to generate approximately 2.88 lakh jobs, transforming conventional farming into a more profitable venture. It can be viewed as its emphasis on agriculture as a refreshing change in a region where it has always been crucial to rural life.
The budget also places a significant focus on healthcare. With Rs. 600 crore dedicated to the SEHAT scheme and further resources for establishing new medical colleges, enhancing diagnostic facilities, and expanding telemedicine services, the government is prioritizing the health and welfare of its citizens. This commitment comes at a time when accessible, quality healthcare is a pressing demand among the population.
Infrastructure and power development are also key components. The government’s intentions to invest in improving roads, bridges, and digital connectivity are expected to significantly enhance both urban and rural access. A particularly well-received measure is the provision of 200 units of free electricity for AAY families, which has already struck a chord with many households. Alongside a strong initiative to install smart prepaid meters, these plans aim to minimize technical losses and ensure a dependable power supply, crucial for both industrial and domestic needs.
Though the budget emphasizes job creation , it fails to tackle the long-standing issues faced by daily wage earners, contractual workers, and temporary employees in various government sectors. These individuals, who have worked for years under precarious conditions, were expecting a definitive policy regarding their regularization, but the budget provides no clarity on their future. While it mentions the creation of new jobs, the absence of guarantees for current temporary workers has caused increasing dissatisfaction. Without specific actions to ensure their job security, workforce instability remains a significant problem, casting a shadow over the broader employment goals presented in the budget.
The Budget 2025 presents various initiatives focused on empowering women, enhancing legal education, improving social security, and securing property rights, signalling a progressive and strategic governance approach. The introduction of a free bus service for women aims to enhance mobility and provide financial assistance; however, its effectiveness is in doubt due to the limited bus availability in the area. In many places, public transport is either insufficient or unreliable, and without a significant increase in bus numbers, this initiative may have minimal real-world benefits for many women, particularly in rural regions. If bus availability remains low, overcrowding is likely to become a significant issue. The Marriage Assistance Scheme’s increase in financial support from ₹50,000 to ₹75,000 offers temporary aid but fails to tackle underlying issues of gender-based economic dependency, such as the lack of job opportunities. The proposal to establish a National Law University is a positive step towards bolstering the legal education system in J&K, but its actual effectiveness will rely on the quality of infrastructure, and faculty. Furthermore, exempting stamp duty on property transfers among blood relatives may alleviate financial burdens for families; however, it could disproportionately benefit wealthier households that frequently conduct high-value property transfers, leaving poorer families with little to no transferable assets at a disadvantage. Without measures to promote broader access to property ownership, this policy may exacerbate existing wealth inequalities. Although these initiatives reflect positive intentions, their long-term success hinges on effective implementation, transparency, and inclusivity to ensure they genuinely uplift all segments of society.
On the plus side, the budget is notable for its inclusive and progressive stance. The significant funding in agriculture, healthcare, and infrastructure is projected to create jobs and elevate living standards for residents in both urban and rural areas. The focus on modern technology—encompassing digital governance, positions the UT towards a more efficient and transparent governance framework. Furthermore, targeted social welfare programs, such as free electricity for low-income households and increased support for education and healthcare, are intended to directly aid disadvantaged groups, thus reducing regional inequalities and strengthening the economy.
On the flip side, there are substantial drawbacks to consider. It can be expected that the substantial fiscal deficit of Rs. 8,596 crore, raising worries about long-term financial viability should revenue forecasts fall short. The ambitious scope of the various initiatives presents considerable implementation challenges, with the potential for delays, administrative inefficiencies, and misallocation of resources. Moreover, a strong focus on capital expenditure might eclipse pressing social needs if not balanced effectively, potentially leaving vulnerable populations without necessary assistance. There are also concerns regarding reliance on extra central funding and favourable borrowing conditions, which could hinder the success of these initiatives if not secured.
Conclusion:
Although the budget sets ambitious goals with significant funding for essential sectors, the critical question is whether these resources can be fully used. Historical patterns indicate that bureaucratic obstacles, slow project progress, and administrative inefficiencies frequently result in resource underutilization. If these challenges continue, many proposed initiatives could end up being merely theoretical rather than providing tangible benefits to the community. Infrastructure projects, social welfare programs, and employment initiatives not only require financial investment but also prompt and transparent implementation. In the absence of a robust framework for execution, ongoing monitoring, and accountability, unspent funds might carry over, hindering necessary development. The effectiveness of this budget will ultimately hinge not just on the stated figures, but on how well they are converted into meaningful actions.
Although it can be expected that the budget’s inclusive strategies—from increased support for farmers and improved healthcare infrastructure to the promotion of cultural heritage and tourism—will cultivate a more resilient and prosperous community, Hope It can serve as a roadmap for evolving our region into a vibrant, modern economy that will honour our traditions while welcoming the future.”
As Jammu & Kashmir embarks on this ambitious path, the upcoming months will determine if the commitments of Budget 2025-26 can navigate fiscal hurdles and administrative challenges to yield enduring benefits for its residents. For now, we should anticipate that the budget symbolizes a renewed dedication—a beacon for new possibilities and hope for a brighter future for the UT of J&K.
By [Ishtiyaq Khan]
Email: Ishtiyaqkhan439@gmail.com
