The Jammu and Kashmir Budget for the fiscal year 2024-25, passed by a voice vote in the Lok Sabha on July 30, 2024, marks a significant milestone in the Union Territory’s financial and developmental trajectory. This approval demonstrates robust support from members of the Indian Parliament and underscores the central government's commitment to promoting development and restoring normalcy in the region. The Jammu and Kashmir Budget 2024-25 and related appropriation bills were passed during the current budget session, setting the stage for a new phase of growth and investment in Jammu and Kashmir.

Highlights of the Jammu and Kashmir Budget 2024-25

The Jammu and Kashmir Budget 2024-25 comes with notable provisions and allocations aimed at addressing critical areas such as infrastructure, employment, and overall socioeconomic development. The total receipts for the year, excluding borrowings, amount to ₹1,18,728 crore. This figure represents an 18.17% increase compared to the estimated actual receipts of ₹97,147 crore for 2021–22. Such a significant rise in receipts highlights the government's focus on enhancing revenue generation and reducing dependency on external borrowings.

Key allocations in this budget include substantial investments in the road sector and the Jal Jeevan Mission, with ₹3,983 crore and ₹3,491 crore earmarked for these schemes, respectively. These investments reflect the priority given to infrastructure development and improving water supply in the region. The emphasis on these areas is expected to foster economic growth, create job opportunities, and elevate the quality of life for the residents of Jammu and Kashmir.

Jammu and Kashmir Budget
Image Source: LinkedIn

Finance Minister Nirmala Sitharaman has indicated that the federal government's fiscal deficit is projected to be reduced to 4.9% of GDP in 2024–25 and further to less than 4.5% by 2025–26. This goal underscores the importance of sound fiscal management and long-term economic stability. The fiscal deficit represents the shortfall between the government's total expenditure and its total revenue, excluding borrowed funds. Achieving this target will be crucial for maintaining financial discipline and ensuring sustainable growth.

Jammu and Kashmir Budget 2024-25 vs. Previous Years

To understand the impact and significance of the Jammu and Kashmir Budget 2024-25, it is essential to compare it with previous budgets. This comparison provides insights into the trends, changes, and financial strategies over the years.

  • Budget 2021–2022: The budget for this fiscal year had total intended receipts of ₹97,147 crore, a 28% increase over the estimated actual receipts for 2020–21. This budget aimed to reduce reliance on borrowing and enhance revenue collection, with tax income estimates raised by 50% to ₹16,276 crore. This shift highlighted efforts to strengthen fiscal management and boost financial stability.
  • Budget 2018–19: With an expected total spending of ₹80,313 crore, this budget represented a 15.2% increase over the revised estimates for 2017–18. It projected a ₹13,084 crore income surplus and targeted a fiscal deficit of ₹9,673 crore, or 6.1% of the state GDP. The budget focused on aligning with the 14th Finance Commission's recommendations and addressing key sectors like power and health.
  • Budget 2017–18: This budget saw a significant rise in spending to ₹79,472 crore, a 29.3% increase from the 2016–17 estimates. It set a target of ₹9,354 crore for the fiscal deficit, which amounted to 6.2% of the state GDP. The allocation for vital industries, particularly power and health, indicated a strong focus on improving governance and public service delivery.

Implications for Jammu and Kashmir

The approval of the Jammu and Kashmir Budget 2024-25 by the Lok Sabha holds considerable promise for the region. The budgetary provisions are expected to provide a much-needed boost to the local economy, generate employment opportunities, and enhance the overall quality of life for the residents. By prioritizing development initiatives and infrastructure projects, the budget aligns with the central government’s ongoing efforts to integrate Jammu and Kashmir more closely with the rest of the nation and ensure its progress on par with other states and Union Territories.

In summary, the Jammu and Kashmir Budget 2024-25 represents a pivotal moment in the region's financial and developmental landscape. With significant increases in receipts, targeted allocations, and a focus on fiscal discipline, the budget sets the stage for a period of growth and advancement. As the Union Territory continues to navigate its path toward development, the strategic investments and priorities outlined in this budget will play a crucial role in shaping its future trajectory.

You might also be interested in - INDIA bloc protests Kursi Bachao Budget, ‘Extortion money to Bihar, Andhra’