Budgeting is basically and essentially an economic tool of planning and controlling. But it is immensely influenced by the politics and political system and therefore it is apt to call it also as a tool and weapon of political economy. The present budget which was tabled in the legislative assembly by the chief minister Omar Abdullah on 7th of March 2025 Friday who also holds the portfolio of finance ministry is a people and growth oriented exercise through what can be called Omarnomics where growth meets welfare and it is the blend of economics, politics, the vision and acumen of the chief minister. It is in fact a pro people and pro poor budget which underlines the blueprint for the socio-economic development of Jammu and Kashmir. At the outset it should be noted that the current budget is the very first budget of an elected government in seven years and also the maiden budget of the UT presented and tabled by the elected government and chief minister. The total budget outlay is of Rs 1.12 lakh crore. People of Jammu and Kashmir have high hopes on the democratically elected government and they expect that the new government which is in place in J&K will deliver on the promises made with the electorate during the recently concluded election to the legislative assembly.
However Omar Abdullah deserves a pat at his back for making commitment in the legislative assembly on the eve of tabling his budget proposals that his government is going to fulfill all the promises made with the people and now it is to be seen how will the new government pursue the job of meeting the promises with the people. The budget is more or less a balanced one as it caters to the needs and aspirations of all most all sectors and sections of the people. The main thrust of the budget is on agriculture, infrastructure development, industry, tourism, healthcare, Skill development and creation of 1.37 lakh enterprises which will ensure 4.25 lakh jobs to meet the unemployment and joblessness in Jammu and Kashmir. Besides the main focus is on the poorest of poor such as AAY category which will get 200 units of electricity free, 10 kg of free ration as well as marriage assistance of Rs 75K up from the previous budget of Rs 50000. In the budget there is provision of free travel for women in government transport and electronic buses and it is major relief to the women who constitute more than half of the UT’s population. The new budget focuses on growth, inclusivity and stability. The chief minister reiterated that the J &K should not solely bank on the financial assistance from New Delhi and this budget will dart the path for self–reliance and self-dependence. At the same time Omar Abdullah thanked the PM, HM and FM for the generous financial support. One more significant thing of the budget is that the pension has been enhanced for over 10 lakh vulnerable persons. Moreover stamp duty has been removed on the transfer of property to blood relations. Chief Minister described this budget as historical one as the concerns of all legislators and other stakeholders have been taken due care of in the budget for the first time. He also assured the people that all manifesto promises will be fulfilled. So far as the provision of free electricity up to 200 units is concerned, the CM said that other people will also be added in freebie when the financial position of the J&K improves. He said that this budget is more than a financial statement - it is a roadmap for a new and prosperous Jammu and Kashmir. The budget is the reflection of the aspirations of the people and lays the solid and strong foundation for economic growth, social progress and sustainable development. These are the very noble ideas and a dream vision and the moot question is how will the budget exercise and implementation fulfill all these ideas and promises as well as the noble vision of the chief minister?
It is good that J&K economy is projected to grow at 9.5% in 2025-26 with major investments in infrastructure, tourism, agriculture, and industry. To maintain fiscal discipline enough stress has been laid in the budget so that unproductive expenditure of the government is reduced and a push to growth is ensured in the year. Priorities in the budget have been outlined to lessen dependence on the central financial support and stress has been given to improve revenue collection and ensure financial stability. In the budget fiscal reforms were unveiled to give strength to the J&K economy. The government will introduce new hydropower policy to attract private investment and will give boost to electricity production and for this required provision has been made in this year’s budget. Moreover series of welfare and development initiatives for 2025-26 have been unveiled. For 2025-26 power sector has been allocated a handsome amount of Rs 2,021 crore under capital expenditure marking an increase of 762.80 crore from the revised allocation of 2024-25. Food security will be strengthened with a robust PDS and smart PDS will be implemented in 2025-26 and this is no mean development by any standard. It is worth noting that 46 new industrial estates will be developed with Rs 310 crore and the existing ones will be upgraded. Besides, Rs 15 crore have been earmarked for the promotion of film production in Jammu and Kashmir. Two new universities namely National Law and Skill & Entrepreneurship are proposed in the budget. Rs 5000 crore will be spent for strengthening power infrastructure during the year.
For shri Amarnath Ji pilgrimage up gradation and improvement of infrastructure, Rs 80 crore provision has been made in the budget. Omar Abdullah announced a slew of welfare majors for the poorer people including ration of 10 kg’s for every member of the AYY family. The CM proposed an enhancement in pension amounts for old age persons, widows, divorcees, and specially able persons benefitting more than 10 lakh people. CM also announced support to 40,000 women under Lakhpati Didi Scheme in launching micro - startups, ensuring sustainable annual income of Rs one lakh. However there will be increase in the price of petrol by Rs 1 and diesel by Rs 2.This increase will not make much impact upon the people. To conclude it can be said that the J&K budget is pro poor, pro people and growth as well as stability oriented. It is inclusive financial statement with focus on welfare schemes for the poor. It will satisfy the aspirations of the various sections of the society and will cater to the needs of different stakeholders. It can be said to be a balanced budget with focus on economic development and prosperity of Jammu and Kashmir. It is Omarnomics in full swing and when implemented in totality will benefit the people of Jammu and Kashmir. Let me end this write up with the Persian couplet mentioned by Omar while starting his 97 minute speech which reads-‘’Tan Hama Daag Daag Shud - Pumba Kuja Kuja Neham…’’which roughly translates in English as my entire body is covered with bruises where should I apply the balm. He has perhaps said it in context of the failing economy of the J&K and now it is interesting to see how will his budget bring the UT back on health and rails.
(Vivek Koul)
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