Omar Abdullah presented J&K’s 2026-2027 Budget focusing on sustainable economic growth and social harmony.
Budget addresses challenges from floods, terror attack and geopolitical issues impacting tourism and agriculture.
Government prioritises infrastructure, power reforms, youth opportunities and fiscal discipline with central support.
Jammu and Kashmir Chief Minister Omar Abdullah presented the Union Territory's Budget for 2026-2027 in the Legislative Assembly on Friday, describing it as a plan to build sustainable growth, social harmony and economic prosperity.
According to PTI, Abdullah stated that his government aims to turn the Union Territory into a modern, progressive and economically vibrant area by encouraging investment, innovation and participatory governance.
"With 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," Abdullah said while presenting the Budget.
He described the Budget as a roadmap for development. "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."
The chief minister called on members of the House to collaborate for the region's progress. "As we embark on this shared journey, I invite every honourable member of this august House to come together and work collectively to build a strong and flourishing Jammu and Kashmir," he said.
PTI reported that Abdullah, who holds the finance portfolio, highlighted the resilience of the people and reaffirmed his government's commitment to making Jammu and Kashmir progressive and economically vibrant. "Together, we will turn obstacles into stepping stones and aspirations into achievements," he added.
The chief minister noted that the government is working to create a business-friendly environment to draw investment and innovation. He mentioned that the Budget followed extensive consultations with elected representatives, industry leaders and stakeholders to keep it people-centric.
Abdullah referred to challenges from the past year, including geopolitical factors, the Pahalgam terror attack and floods in parts of the Jammu region, which harmed economic activity. "All sectors, including tourism, handicrafts, horticulture and agriculture were badly affected, leading to job losses and financial distress for families," he said.
According to PTI, the Budget prioritises inclusive and sustainable growth via investments in infrastructure, public services and governance, with a focus on opportunities for youth and women.
The chief minister pointed out fiscal constraints, noting that own tax and non-tax revenues cover only about 25 per cent of budgetary needs. Revenue collections reached Rs 10,265 crore from taxes and Rs 4,964 crore from non-tax sources up to 31 December 2025.
Abdullah said nearly 60 per cent of overall expenditure goes to salaries, pensions and debt servicing, and the government is managing debt while reducing non-priority spending. "We are strengthening debt sustainability by keeping borrowings within approved limits and improving liquidity management. For the third consecutive year, austerity measures have been enforced," he said.
He outlined power sector reforms, such as expanding the consumer base and reducing losses, to alleviate financial pressure.
Abdullah recognised the Centre's support in tackling fiscal issues. "The central government has remained cognizant of our difficulties and consistently supported us through special assistance," he said, adding that Jammu and Kashmir now falls under the Special Assistance to States for Capital Investment scheme.
The chief minister stated that funds from the scheme would go towards infrastructure development, hydroelectric projects and disaster mitigation, especially in flood-hit areas.
(With inputs from PTI)
