“My entire body is covered with bruises
Where should I apply balm”
With this poignant couplet, Jammu and Kashmir Chief Minister Omar Abdullah on Friday began his budget speech, marking it the regions’ first Budget speech in six years.
The region had been without an elected government—from June 2018 to October 2024—following the collapse of PDP-BJP government and subsequent abrogation of special status of the region and its split into two Union Territories—Jammu and Kashmir, and Ladakh.
The ₹1.12 lakh crore budget for 2025-2026 allocates significant funds to key sectors with a strong emphasis on agriculture, tourism and infrastructure.
It also includes welfare measures such as free public transport for women and free electricity and ration for beneficiaries under the AAY scheme.
In his speech, Chief Minister Abdullah termed the budget as a road map for a new and prosperous Jammu and Kashmir, reflecting the aspiration of people and laying a strong foundation for economic growth, social progress, and sustainable development.
The budget highlighted the significance of the agriculture and allied sectors in providing livelihood to the majority of the population. For 2025-2026 , a total of ₹815 crore has been allocated to agriculture, aiming at creating 2.88 lakh jobs and achieving a growth of 11 per cent , while establishing 19,000 enterprises.
Abdullah said that the government was intending to introduce a two-crop pattern across all agricultural land.
“Strengthening irrigation, improving market access, and promoting sustainable farming are the key priorities of the government”, Abdullah said in his speech.
The government plans to expand horticulture crop coverage to 3.75 lakh hectares and enhance production by 15-20 per cent within the next five years.
Under capital expenditure, an an allocation of ₹2,221.58 crore has been made under capital expenditure for the year 2025-2026 for agriculture and allied sectors, marking an increase of ₹332.72 crore over the revised allocation of 2024-25.
Tourism
To further boost the tourism sector, the government has allocated ₹390.20 crore under capital expenditure for 2025-26, marking an increase of ₹121.77 crore from the revised allocation for 2024-25.
In 2024, Jammu and Kashmir received 2.36 crore tourist arrival, reflecting the huge tourist potential of the region.
Abdullah said that the government would develop new master plans for key destinations like Gulmarg, Pahalgam and Sonamarg.
The government also plans to promote the off-beat tourist destinations with destinations like shiv Khori , Doodhpathri, Mansar-Surinsar and Lolab already gaining popularity.
“Our government is vigorously pursuing multilateral and central funding through the SPREAD (Sustainable Promotion of Emerging Alternate Destination) initiative. This will help develop world-class alternative destinations across J&K, reducing the strain on heavily visited locations”, Abdullah said.
The government also plans to operationalise the film policy to make the region as a preferred location for the filmmakers.
Industries and Start-ups
For the Industries sector, ₹602.85 crore has been allocated under capital expenditure for 2025-26, marking a ₹291.44 crore increase from the revised 2024-25 allocation.
Recognising the significance of start-ups, the government proposes an allocation of ₹50 crore to support financial aid, mentorship, and incubation for emerging entrepreneurs. Under the ‘Lakhpati Didi’ scheme, the government aims to empower 40,000 women by helping them establish micro-enterprises, guaranteeing a steady annual income of ₹1 lakh and fostering economic self-sufficiency across the Union Territory.
Healthcare
The budget also prioritises the healthcare sector, with the government allocating ₹1,750.50 crore under capital expenditure for 2025-26.
The government is establishing 30-bedded Emergency Medicine Departments in all GMCs and 10 Nursing Colleges will be fully equipped with the faculty and staff .To enhance the medical education, the government will expand MBBS seats, postgraduate courses, and B.Sc. Nursing and Paramedical Colleges.
The government informed that there are around 4,000 health facilities including two AIIMS, two cancer institutes and two Bone and Joint Hospitals.
Welfare schemes
To enhance women’s mobility, the budget introduces free ridership on government-owned buses, including e-buses— a first-of-its-kind initiative in Jammu and Kashmir.
Fulfilling its poll promise, the government has announced to provide 200 units of free electricity to all AAY families.
“Integrated with the PM Suryaghar Bijli Yojana, this initiative will enable the installation of grid-connected solar systems, generating required power and eliminating electricity bills. With an investment of ₹750 crore spread over five years, this step will also reduce AT&C losses and promote sustainable energy,” said the Chief Minister.
The government will also provide a free ration of 10 kgs per person to all AYY cardholders from April 1.
Underlining the significance of press freedom, Abdullah said that the government would take concrete steps to support and revive press clubs in both Jammu and Kashmir.
