Jammu and Kashmir Chief Minister Omar Abdullah, while presenting the state’s budget on Friday, emphasised that the region is on the path to lasting peace. It is the first budget to be presented by the elected government in the last seven years.

He mentioned that the state’s GST compliance has increased and expressed commitment to aligning with Sustainable Development Goals (SDG). Abdullah highlighted that the focus of the budget was on empowering youth and women, addressing regional disparities, and striving for the restoration of statehood. The budget includes an allocation of ₹815 crores for agriculture, to generate 2.88 lakh jobs.

• Read also: Karnataka Budget 2025 LIVE updates: CM Siddaramaiah defends guarantee schemes, focus on growth, welfare and infrastructure

The state will promote a two-crop pattern and focus on expanding horticulture. The government also plans to boost wool processing and promote the leather tanning industry, which is expected to help the local economy. Abdullah emphasised the state’s ongoing journey towards peace, noting that Jammu and Kashmir is now on the path of lasting peace after decades of unrest.

Tourism is another major focus, with the government projecting a volume of 2.36 crore tourists in 2024. Events like the Kashmir Marathon, which hosted 1,800 global participants, and the growing popularity of places like Shiv Khori and Dudh Pathri, led to the inflow of tourists in the state.

The budget has provisioned ₹390.20 crore for tourism development, with plans to increase homestays, promote water sports, and develop Sonmarg as a winter sports destination. Jammu will see a new water park in Sidhra, and Basholi will be developed as an adventure destination. The JK CM stressed the importance of transparency in welfare measures and stated that the government is focused on empowering sectors like agriculture, tourism, and local industries.

Additionally, the government plans to operationalise a new film policy, aiming to make JK a prime destination for film production and eco-tourism. The state will also focus on constructing 500 new Panchayat Ghars to improve local infrastructure.

The budget reveals that 70 percent of the funds are being allocated towards salaries, which is putting a significant strain on the state’s finances. Additionally, there are high ATNC (Administrative, Technical, and Non-Commercial) losses, and the state’s debt has increased. However, all borrowing has been kept within the prescribed limits to maintain financial discipline.The budget also includes provisions for grants worth ₹5,000 crore, aimed at boosting the region’s development.

The budget also focused on industry as it plans to establish 64 industrial estates and address traders’ concerns with a new policy offering price preferences. Additionally, there will be a focus on promoting Pashmina and other local products, with seven more products set to receive GI (Geographical Indication) tagging.

• Read also: Retail inflation is expected to settle at 4.1% in Feb’ 25: BoB Economic Research

In the healthcare sector, the budget includes provisions for two new AIIMS institutions and ten fully-equipped nursing colleges. Aiming to enhance access to healthcare, Abdullah announced a ₹5 lakh health insurance coverage for all citizens, alongside plans to integrate telemedicine services across the state. To further improve medical infrastructure, three new Cath Labs will be established, MRI machines will be installed in all government hospitals, and dialysis services will be expanded to all district hospitals.

He also stated that feedback had been taken into account while preparing the budget to ensure it meets the needs of the people, particularly in terms of reducing regional disparities and improving overall economic health. Omar Abdullah expressed his gratitude to the Prime Minister, Home Minister, and Finance Minister for their continued support and cooperation in the state’s progress.