Fiscal Stability

The budget for Jammu & Kashmir for the fiscal year 2024-25 was tabled in the Parliament on Tuesday. This budget aims to address the unique economic and infrastructural challenges faced by Jammu & Kashmir while ensuring fiscal stability and promoting comprehensive development. The Government of India has agreed to provide special financial support of Rs. 17,000 crore to J&K. This assistance includes a special central allocation of Rs. 12,000 crore for the salary, pension, and other costs of Jammu & Kashmir Police, and an additional central grant of Rs. 5,000 crore. This financial package is expected to reduce the fiscal deficit to GDP ratio of Jammu & Kashmir to 3.0% for the financial year 2024-25. The overall central assistance, estimated at Rs. 67,133 crore is expected to improve the fiscal health of the UT, enabling it to meet the developmental needs and aspirations of its people. The 2024-25 budget includes comprehensive provisions for ongoing infrastructure development, sustainable agriculture, new industrial estates, PRI level works, employment generation, tourism development, and social inclusion. The budgetary estimate for the financial year is Rs. 1,18,390 crore, with Rs. 81,486 crore allocated for revenue expenditure and Rs. 36,904 crore for capital expenditure. The largest allocation of Rs. 9,400 crore is for subsidy and power purchase, acknowledging the region’s energy requirements and the need to support vulnerable populations. This allocation will help stabilize the power supply and provide relief to citizens. Roads and bridges construction has been allocated Rs. 3,983 crore, recognizing the importance of connectivity in promoting economic growth and development. This investment will improve infrastructure, facilitate trade, and enhance the overall quality of life. School education infrastructure has received a significant allocation of Rs. 1,875 crore, emphasizing the government’s focus on human capital development. This investment will help upgrade schools, improve learning outcomes, and provide better educational opportunities for children. Decentralized governance has been allocated Rs. 1,808 crore, aiming to empower local bodies and promote participatory development. This allocation will strengthen grassroots democracy and enable local communities to take ownership of their development. Smart city projects and urban development have been allocated Rs. 1,484 crore, recognizing the need for modern and sustainable urban infrastructure. Health sector infrastructure has been allocated Rs. 1,317 crore, acknowledging the need for quality healthcare services. This investment will upgrade hospitals, improve medical facilities, and enhance healthcare outcomes. Housing for rural poor has received Rs. 1,104 crore, addressing a critical need for shelter and dignity. This allocation will provide housing support to marginalized communities, improving their living conditions and overall well-being. The extensive allocations across various sectors indicate a holistic approach to development, focusing on infrastructure, education, health, agriculture, and social welfare. The emphasis on enhancing revenue collection and efficient utilization of funds reflects a strategic shift towards self-reliance and fiscal discipline. This budget lays a strong foundation for future growth, ensuring that the benefits reach every citizen, especially in the remote and challenging regions of J&K.