“My body is covered in bruises
Where should I apply balm?”
With this moving couplet, Jammu and Kashmir Chief Minister Omar Abdullah commenced his budget speech on Friday, marking the region’s first budget address in six years.
Jammu and Kashmir had been without an elected government from June 2018 until October 2024, following the dissolution of the PDP-BJP coalition government and the subsequent abrogation of the region’s special status, which led to its division into two Union Territories: Jammu and Kashmir, and Ladakh.
The budget for 2025-2026, totaling ₹1.12 lakh crore, allocates substantial funds to critical sectors, focusing heavily on agriculture, tourism, and infrastructure development.
It also includes social welfare initiatives such as free public transportation for women, and complimentary electricity and rations for beneficiaries under the Antyodaya Anna Yojana (AAY) scheme.
In his address, Chief Minister Abdullah described the budget as a roadmap for a new and prosperous Jammu and Kashmir, reflecting the aspirations of the people and serving as a strong foundation for economic growth, social advancement, and sustainable development.
Highlighting the importance of agriculture and related sectors in providing livelihoods to the majority of the population, the budget allocates ₹815 crore for agriculture in 2025-2026, aiming to create 2.88 lakh jobs and achieve an 11 percent growth while establishing 19,000 new enterprises.
Abdullah mentioned that the government is planning to introduce a two-crop system across all agricultural land.
“Enhancing irrigation, improving market access, and promoting sustainable farming practices are key government priorities,” Abdullah stated in his speech.
The administration aims to expand horticulture crop coverage to 3.75 lakh hectares and increase production by 15-20 percent over the next five years.
For capital expenditure in agriculture and related sectors, an allocation of ₹2,221.58 crore has been designated for the year 2025-2026, marking an increase of ₹332.72 crore compared to the revised figures for 2024-25.
To further support the tourism industry, the government has earmarked ₹390.20 crore for capital expenditures in 2025-2026, reflecting an increase of ₹121.77 crore from the revised 2024-25 allocation.
In 2024, Jammu and Kashmir welcomed 2.36 crore tourists, underscoring the region’s vast tourism potential.
Abdullah announced plans to develop new master plans for major tourist destinations such as Gulmarg, Pahalgam, and Sonamarg.
Additionally, the government intends to promote lesser-known tourist spots, with Shiv Khori, Doodhpathri, Mansar-Surinsar, and Lolab gaining increasing popularity.
“Our government is actively pursuing multilateral and central funding through the SPREAD initiative (Sustainable Promotion of Emerging Alternate Destination). This will facilitate the development of world-class alternative destinations throughout Jammu and Kashmir, alleviating pressure on popular tourist sites,” Abdullah added.
The government also aims to implement its film policy, positioning the region as a preferred filming location.
For the industrial sector, an allocation of ₹602.85 crore has been made under capital expenditure for 2025-2026, which signifies an increase of ₹291.44 crore compared to the revised allocation for 2024-25.
Recognizing the importance of start-ups, the government has proposed an allocation of ₹50 crore to provide financial support, mentorship, and incubation for budding entrepreneurs. Under the ‘Lakhpati Didi’ initiative, the government intends to empower 40,000 women, helping them establish micro-enterprises, ensuring a stable annual income of ₹1 lakh, and fostering economic self-sufficiency across the Union Territory.
The budget also prioritizes healthcare, with an allocation of ₹1,750.50 crore for capital expenditure in 2025-2026.
The government is setting up 30-bedded Emergency Medicine Departments in all Government Medical Colleges (GMCs) and will ensure that 10 Nursing Colleges are fully equipped with the necessary faculty and staff. To enhance medical education, the government plans to expand MBBS seats, postgraduate courses, and establish B.Sc. Nursing and Paramedical Colleges.
There are approximately 4,000 health facilities in the region, including two AIIMS, two cancer institutes, and two Bone and Joint Hospitals.
To improve women’s mobility, the budget introduces free rides on government-owned buses, including electric buses—a novel initiative for Jammu and Kashmir.
In line with its electoral promises, the government announced the provision of 200 units of free electricity to all AAY families.
“Integrated with the PM Suryaghar Bijli Yojana, this initiative will facilitate the installation of grid-connected solar systems, which will generate the required power and eliminate electricity bills. With an investment of ₹750 crore spread over five years, this measure will also help reduce AT&C losses and promote sustainable energy,” the Chief Minister outlined.
The government will provide free rations of 10 kgs per person to all AAY cardholders starting April 1.
Emphasizing the importance of press freedom, Abdullah stated that the government would undertake concrete steps to support and revive press clubs in both Jammu and Kashmir.
