Jammu and Kashmir’s proposed full budget for 2024-25 reflects a strategic roadmap for the UT’s economic growth, infrastructure development, social welfare, and security enhancement. The interim budget projected 7.5% growth in the UT’s economy, signalling optimism and confidence in its economic prospects. The revenue is expected to reach Rs 20,867 crore, coupled with a significant allocation for capital expenditure, which promises investments in crucial infrastructure projects, potentially fostering economic activity and job creation. By leveraging the region’s natural resources, promoting entrepreneurship, and attracting investments, the budget aims to diversify the economy and reduce dependence on traditional sectors. Initiatives like tap water connectivity for rural areas and Industrial Policy 2021-30 demonstrate a commitment to holistic development. Education takes centre stage with a focus on improving infrastructure and aligning with the NEP, ensuring better learning environments for students. Path-breaking initiatives, including the implementation of emerging technologies like AI, ML, and IoT, underscore the government’s commitment to modernising service delivery and enhancing efficiency.
The budget allocates substantial resources to infrastructure development, addressing critical areas such as transportation, power, and urban amenities. Investments in road connectivity, railway infrastructure, and power projects demonstrate a forward-looking approach towards building the necessary foundation for sustained growth. A significant push with Rs 660 crore earmarked for UT’s equity in hydroelectric projects is expected to boost power generation and contribute to the region’s energy security. Notably, the construction of the railway link between Jammu and Srinagar and the development of new industrial estates underscore the government’s emphasis on enhancing connectivity and attracting investments. It also opens up remote areas for development, fostering inclusivity and regional integration.
Provisions for women’s empowerment, including the Ladli Beti Scheme and Marriage Assistance, reflect a commitment to gender equality and social inclusion. The ample budget allocation for Panchayati Raj institutions highlights the government’s intention to empower local bodies. Rehabilitation of Kashmiri Pandits receives a notable boost, demonstrating the government’s commitment to their safe return and reintegration. The allocation will likely be directed towards initiatives like housing, employment opportunities, and cultural preservation.
Recognising the immense potential of tourism in driving economic growth and employment generation, the budget prioritises the development of off-beat destinations and heritage sites. Investments in tourism infrastructure, including the promotion of border tourism in Gurez and the enhancement of pilgrimage routes like the Shri Amarnath track, signify a concerted effort to harness J&K’s rich cultural and natural heritage for sustainable development. Enhanced tourism generates revenue, creates livelihood opportunities for local communities, preserves cultural heritage, and promotes sustainable development.
The budget allocates ample resources towards strengthening security measures, acknowledging their importance for attracting investment and promoting tourism. Initiatives such as the construction of new police posts, the installation of CCTV cameras, and the digitization of police records underscore the government’s commitment to maintaining law and order while embracing modern policing techniques. The safety and well-being of police personnel are addressed, with Rs 59 crore allocated for constructing police housing colonies and providing relief and rehabilitation.
Agriculture and allied sectors get major allocations to be the future economic engine of the UT. By promoting eco-tourism, renewable energy projects, and conservation programmes, the budget aims to safeguard natural resources for future generations. The budget recognises the importance of sports and community development by allocating substantial funds. Financial institutions, with a Rs 500 crore allocation, will improve access to credit for businesses and individuals, potentially fostering economic growth.
With just 17% of its own tax revenue and 8% non-tax revenue, the budget relies heavily on external sources. Additionally, 27% goes towards salaries and 12% towards pensions, leaving less for development. Interest payments (9%) and power purchases (6%) further compound the issue. The government needs concrete strategies to boost its own revenue, optimise expenditures, and manage debt to ensure sustainable growth. Sustained commitment and collaborative action will be key to realising the vision of a prosperous and inclusive Jammu and Kashmir.
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