Jammu, Feb 6: Seemingly with an eye on local bodiesí polls, Chief Minister Omar Abdullah on Friday presented zero-deficit J&K budget 2026-27, with an outlay of Rs 1,13,767 Cr, up by Rs 3000 Cr as compared to the outlay for 2025-26, in the J&K Legislative Assembly, rolling out a slew of ìwelfare measuresî and freebies.
Chief Minister, who is also the Finance Minister of J&K, in his second budget, christened as ìpeople-centricî, announced six ìmega announcementsî that also included financial support for AAY families for 6 free LPG cylinders per year thus fulfilling National Conferenceís another poll promise. Though in its manifesto, it had promised to provide 12 cylinders free of cost per year to Economically Weaker Sections (EWS).
Five other mega announcements included development of two emergency and trauma hospitals at Uri and Poonch; free bus services for differently abled passengers in public transport; DBT-based financial reimbursement of fees for AAY students from Class 9 to 12 and for college students; and sponsorship support to 6,000 orphans under non-institutional care.
With regard to the issue of regularisation of daily rated workers, the Chief Minister said that the recommendations of the high level committee constituted would be implemented to find a just and humane solution for their structured and phase wise regularisation within the framework of law and fiscal responsibility.
Among 32 major welfare initiatives announced by the Chief Minister also include bullet-proof ambulances for border districts of Poonch and Tangdar who suffer during cross-border firing and conflict; extending free ridership for women in Smart city buses and other Government transport; procurement of additional 200 e-buses.
SUBSTANTIAL JUMP OF RS 3000 Cr IN OUTLAY FOR 2026-27
In terms of budget specifics vis-‡-vis sectoral allocations, out of overall budget outlay of Rs 1,13,767 Cr, the capital outlay is Rs 33,127 Cr which marks a substantial jump in terms of Rs 3000 Cr over past year, mainly on account of inclusion of J&K in SASCI. Under this programme, till now J&K has received Rs 3200 Cr. This is a massive jump within one year. If you look at states comparable to J&K size, they are still under Rs 600 or 700 Cr.
In terms of administrative sector, covering GAD and other departments in the budget, the outlay is reduced to Rs 1490 Cr to Rs 964 Cr, mainly on account of J&K Police and Home Department as that burden is now shouldered by the Union government.
In infrastructure sector, the outlay has increased from Rs 10,300 Cr to Rs 11300 Cr, with a major jump of Rs 1000 Cr. Even within that the Power Development Department is slightly on lower side because J&K has paid all the equity that was due on part of J&K in current year itself. Therefore, no equity is to be paid in the next financial year.
Social sector outlay is Rs 4665 Cr while in case of economic sector, the outlay has been increased from Rs 6200 Cr to 6518 Cr, especially for agriculture, horticulture etc. For finance sector, the outlay has increased from Rs 7700 Cr to Rs 9600 Cr, mainly on account of higher repayments.
BUDGET FOR 2026-27
For 2026- 2027, the total gross receipts are estimated at Rs 1,27,767 Cr, including the provision for ways and means advances and over-draft of Rs 14,000 Cr. Given these receipts, the total gross expenditure is estimated to be Rs 1,27,767 Cr.
ìThe total net budget estimates for the fiscal 2026-27 are Rs 1,13,767 Cr excluding the provision for ways and means advances and overdraft. This includes Rs 80,640 Cr and Rs 33,127 Cr under Revenue Expenditure and Capital Expenditure respectively under Budget Estimates 2026-27 and Rs 90,018 Cr and Rs 23,749 Cr as expected Revenue Receipt and Capital Receipt respectively under Budget Estimates 2026-27,î the Chief Minister announced.
The own revenues both tax and non-tax are estimated to be Rs 31,800 Cr. In addition to this, Rs 42,752 Cr is to flow as central assistance and Rs 13,400 Cr as CSS to Jammu and Kashmir.
GSDP for 2026ñ27 has been projected at Rs 3,15,822 crore, reflecting 9.5 percent growth, CM Omar shared.
Chief Minister in his address mentioned that the year 2025 had been nothing but challenging for Jammu and Kashmir and for the entire nation.
ìAt national level, we see our growth path suddenly challenged by geo-political challenges. While the national economy is accelerating at 6ñ8 percent growth rate, we see our access to global markets being constrained by trade frictions. Even in Jammu and Kashmir, just as our economy was consolidating with renewed vigour, the barbaric terrorist attack at Pahalgam and its aftermath shocked us. The devastating floods in August and September have severely battered the Jammu region,î he stated.
He pointed out that those two calamities further accentuated the fiscal challenges before J&K.
ìAll the sectors of economic activity, including tourism, handicrafts, horticulture and agriculture are badly affected. There is a substantial loss of jobs and business in all sectors, leading to financial stress on the families,î he said.
He said the 2026-26 budget would lay a strong foundation of enduring economic growth, social harmony and sustainable prosperity.
He said that his government was committed to transforming J&K into a modern, progressive and economically vibrant region.
ìThe Budget carries a wide range of people-centric initiatives aimed at delivering immediate relief, strengthening social protection, promoting inclusive growth and ensuring equitable development across all regions of Jammu and Kashmir,î he said.
A Poetic beginning and visionary commitment
Chief Minister Omar Abdullah began his budget speech with a couplet:
Safar Taveel Hai, Bhoj Bhi Bari Hai.
Par Har Surat, Yeh Safar Jaari Hai.
Jaari HaiÖ
Opening his address, the Chief Minister said, ìWith deep humility and unwavering resolve, I rise today to present my Second Budget as Finance Minister. It is a privilege to be entrusted with the responsibility of shaping the financial future of our land. This Budget is not merely a ledger of figures; it is a fiscal compass charting our path towards a brighter horizon. It lays strong foundations for enduring economic growth, social harmony, and sustainable prosperity. As we embark on this shared journey, I invite every Honíble Member of this august House to come together and work collectively to build a strong and flourishing Jammu and Kashmir.î
Addressing the House, the Chief Minister said that beyond sector-wise allocations, the Budget carries a set of focused measures that will directly touch the lives of citizens, particularly the most vulnerable sections. ìThese initiatives reflect our commitment to social justice, targeted welfare and long-term empowerment,î he said.
Boost to handicrafts, trade promotion and Unity mall
To strengthen the livelihood of artisans and promote Jammu and Kashmirís globally renowned crafts, the Chief Minister announced enhanced budgetary support to the Jammu and Kashmir Trade Promotion Organisation (JKTPO). Regular BuyerñSeller Meets will be organised to create direct market linkages between local artisans and national and international buyers, improving branding, market access and income opportunities.
The Chief Minister also informed the House that financial support of up to Rs 200 Cr has been received for construction of the Unity Mall, envisioned as a permanent Crafts Bazaar and platform for local products, handicrafts, handlooms and traditional enterprises from across the country.
CM announced that J&K has been brought under Special Assistance to States for Capital Investment (SASCI) scheme by central government which offers 50 year interest free loan for taking up infrastructure projects saying that additional Rs 1431 Cr has been provided under the untied component for disaster mitigation and restoration works. Under the third component of the (SASCI), Jammu and Kashmir has been allocated Rs 210 Cr, which will be leveraged to provide the UTís share for eligible Centrally Sponsored Schemes.