New Delhi, Feb 1: The Union government has allocated Rs 41,000.07 crore to Jammu and Kashmir in the Budget for 2025-26, keeping it nearly unchanged from the revised estimate for the 2024-25 fiscal.
Notably, the Jammu and Kashmir Police—under the direct control of the Union Home Ministry since the abrogation of Article 370—has received an increased allocation of Rs 9,325.73 crore, up from Rs 8,665.94 crore in 2024-25. In the budget presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on Saturday, Rs 40,619.30 crore has been earmarked as central assistance to bridge the resource gap in Jammu and Kashmir. Additionally, Rs 279 crore has been allocated for contributions to the Union Territory Disaster Response Fund, while Rs 101.77 crore has been set aside to support capital expenditure.
For the 2024-25 fiscal, the initial allocation for Jammu and Kashmir was Rs 42,277.74 crore, which was later revised downward to Rs 41,000.07 crore. In 2023-24, the allocation stood at Rs 41,751.44 crore. The increased allocation for the Jammu and Kashmir Police for 2025-26 represents a Rs 659.79 crore hike compared to the previous year. The Union Home Ministry stated that the funds were designated for administrative expenditures. The Jammu and Kashmir Police remains responsible for law enforcement and traffic management in the region.
Lieutenant Governor Manoj Sinha hailed the budget as “pragmatic,” stating that it reflects India’s aspirations for accelerated growth and private sector stimulation. Expressing gratitude to Prime Minister Narendra Modi and Finance Minister Sitharaman, Sinha said, “My heartfelt thanks to the Finance Minister for a pragmatic budget for ‘Viksit Bharat’. Grateful to the Prime Minister for putting the economy on a fast track and for bold development initiatives benefiting the poor, youth, farmers, and women.”
He also lauded the increased Income Tax exemption up to Rs 12 lakh under the new regime, calling it a significant boost to the middle class. “The revised tax structure is a historic move to transform the lives of the middle class. The Prime Minister has also provided huge relief to taxpayers by raising the TDS limit on rent, enhancing social security, and formalizing the gig economy,” he said.
Sinha further highlighted the budget’s focus on agricultural growth, citing the agri-district programme as a step towards rural prosperity and social equity. He asserted that India’s status as the fastest-growing major economy would be strengthened by this budget, which aims to boost infrastructure, MSMEs, the energy sector, innovation, and employment generation while pushing transformative reforms for inclusive and sustainable growth.
However, political opposition in Jammu and Kashmir sharply criticized the budget. CPI(M) leader and Kulgam MLA M.Y. Tarigami called it “highly disappointing” for the region. “Instead of increasing assistance to Jammu and Kashmir, the Union government has reduced the allocation compared to the actual budget of 2024-25, ignoring high inflation, rising unemployment, distressed businesses, and other vital livelihood sectors,” he said.
Tarigami accused the government of neglecting the region’s economic distress. “The purchasing power of the people, including the so-called middle class, has alarmingly declined in Jammu and Kashmir over the years. The Union government should have acknowledged this situation and provided relief. Instead, it seems they are punishing the people of Jammu and Kashmir for a mandate that did not align with their interests in the 2024 assembly elections,” he alleged.
The Jammu and Kashmir Pradesh Congress Committee also slammed the budget, arguing that it had failed to address the region’s pressing concerns. “The budget was more focused on Bihar and Delhi for political considerations ahead of assembly elections,” said J&K Congress chief Tariq Hameed Karra.
He pointed out that Jammu and Kashmir faces the second-highest unemployment rate in the country and that thousands of young workers on meager wages await regularization. “Except for a long-overdue minor relief for the salaried class in Income Tax slabs, there is no relief for the middle class and poor, who are battling an unprecedented rise in the cost of essential commodities,” he added.
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