CM presents J&K's first budget in 7 years, proposes series of welfare measures

Beginning his one-and-a-half-hour-long budget speech in the Legislative Assembly, he stated, “I stand before you today to present my first Budget as Finance Minister—marking the first Budget of an elected government in seven years. While it is an honour, I am acutely aware of the weight of responsibility that comes with being the custodian of J&K’s finances at this crucial juncture.”

Women empowerment initiatives

Stressing the need for women’s empowerment, the Chief Minister announced, “Starting April 1, 2025, all women in J&K will be granted free ridership on government-owned public transport, including e-buses. This initiative will ease financial burdens, enhance access to education and employment, and ensure safer, more affordable travel. By removing transport costs, we aim to increase women's mobility, boost workforce participation, and foster greater independence.”

The government also proposed supporting 40,000 women in launching micro-startups, ensuring a sustainable annual income of Rs1 lakh and further advancing economic independence.

Power subsidy and food security measures

While the National Conference (NC) had promised 200 units of free electricity per month in its poll manifesto, the Chief Minister proposed to provide it only to Antyodaya families in J&K. “Integrated with the PM Suryaghar Bijli Yojana, this initiative will enable the installation of grid-connected solar systems, generating the required power and eliminating electricity bills,” he said.

To strengthen food security, the government announced free rations of 10 kg per person for all Antyodaya Anna Yojana (AAY) beneficiaries starting April 1, ensuring enhanced nutritional support for the most vulnerable. “To further improve accessibility and streamline distribution, the government will assess and upgrade fair price shops, reinforcing our commitment to an efficient and inclusive food security system,” Abdullah added.

Property Tax Reforms

In a decision that will impact lakhs of people in the Union Territory, the government has proposed reducing the stamp duty on property gifted to blood relatives to zero. Currently, the stamp duty for such transactions varies between 3% and 7%, discouraging formal registration. The initiative aims to provide financial relief, ensure transparency and streamline property transfers.

Economic growth projections

It was also revealed in the House that J&K’s economy expanded from Rs 1,64,103 crore in 2019-20 to Rs 2,45,022 crore in 2023-24. In 2024-25, the primary, secondary, and tertiary sectors are projected to contribute 20%, 18.3%, and 61.7% to the Gross State Value Added (GSVA), respectively.

Budget in Figures

Total net budget estimates for the fiscal year 2025-26: Rs 1,12,310 crore (excluding provisions for ways and means advances and overdrafts).

Expected revenue receipts: Rs 97,982 crore.

Capital receipts: Rs 14,328 crore.

Revenue expenditure: Rs 79,703 crore.

Capital expenditure: Rs 32,607 crore.

Fiscal Indicators

Tax/GDP ratio projected at 7.5% for 2025-26.

Fiscal deficit for 2025-26 estimated at 3%, significantly lower than 5.5% in 2024-25.

GDP projection for 2025-26: Rs 2,88,422 crore, reflecting 9.5% growth over the previous year.