India’s $14 Billion Budget For Jammu Kashmir Overtakes Pakistan $3 Billion IMF Bailout

The budget for Jammu and Kashmir reflects sharp contrast to the economic condition of Pakistan, which has been finding it difficult to bring itself out of economic crisis.

Outlook Web Desk

Updated on: 6 February 2024 11:29 am

Tourusts enjoy boat ride at Dal Lake in Srinagar. Photo: AP

India’s Rs 1.18 lakh crore ($14 billion) budget for Jammu and Kashmir has overtaken International Monetary Fund’s (IMF’s) $3 billion fund to Pakistan which is seeking to bailout itself out of the economic crisis.

Union Finance Minister Nirmala Sitharaman has proposed an interim budget of Rs 1.18 lakh crore for Jammu and Kashmir for the fiscal 2024-25.

The interim budget envisages a fiscal deficit of Rs 20,760 crore and a 7.5 per cent growth in gross state domestic product (GSDP). The capital expenditure for the fiscal has been proposed at Rs 38,566 crore, which is 14.64 per cent of the GSDP, according to the budget tabled in Parliament.

The budget reflects sharp contrast to the economic condition of Pakistan, which has been finding it difficult to bring itself out of economic crisis. The country has been seeking a $3 billion bailout from the IMF to bring itself out of the troubled economic condition.

While, India has announced the interim budget of Rs 1.18 lakh crore (which is approximately $14 billion) for Jammu and Kashmir, it dwarfs IMF’s recent bailout announcement to Pakistan by 4.72 times.

India’s budget for Jammu and Kashmir was also announced on a day marked by Pakistan as “Kashmir Solidarity Day,” represents a substantial commitment to the economic development of the UT.

J&K’s Lieutenant Governor Manoj Sinha said the budget highlights the government's commitment towards ensuring rapid economic growth of the Union Territory.

He also said that the budget seeks to strengthen democracy at the grassroots, encourage the start-up ecosystem in Jammu and Kashmir as well as enable an environment for investment to accelerate industrial growth.

He also said the budget focuses on skill development and employment of 'Nari Shakti' (women empowerment).

"Grateful to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for J&K's interim budget 2024-25, which is dedicated to farmers, women, youth, marginalised sections of society and seeks to strengthen the grassroot democracy in the Union Territory," LG Sinha said on 'X'.