Budget Approval Paves Way for Fiscal & Banking Reforms

SRINAGAR, AUGUST 09: The Parliament approved the budget of Jammu & Kashmir for 2024-25 with provision of Rs. 1,18,390 crore. While Lok Sabha passed the Appropriation Bill on Tuesday, Rajya Sabha approved it on Wednesday. This budget provides for revenue expenditure of Rs. 81,486 crore and capital expenditure of Rs. 36,904 crore.


This outlay surpasses the pre-actuals of the financial year 2023-24 by Rs. 30,889 crore. This jump has been possible thanks to the special financial support agreed by the Central Government. This package was necessitated due to the persistent under recoveries in power sector due to high ATC losses and low tariff in Jammu and Kashmir.

The UT government had incurred off-budget borrowings of about Rs. 28,000 crore to clear the power sector dues which had piled up over the last several years.


To address these off-budget borrowings, Finance Department had started exercise since the last one year to bring them on the budget books. A detailed analysis of the UT’s fiscal situation was carried out to address the legacy challenges which include high staff strength, low revenue base, and high debt load. In this direction, the UT government increased its own revenues to over Rs. 20,362 crore in the year 2023-24 through improved GST return compliance, dealer registration, and transparent excise auctions. The UT government’s efforts to undertake metering and improve collection efficiency enhanced the non-tax revenues from Rs 5,148 crore in 2022-23 to Rs 6,500 crore in 2023-24.Administrative departments also intensified efforts and stepped up receipt of CSS funds from Rs 6,400 crore in 2022-23 to Rs 10,300 crore in 2023-24.


During 2023-24, the UT government also stringently enforced borrowing limits and curtailed the culture of overdraft and Hundis. With close monitoring of public debt, the UT government was successful in tapering down the off-Budget borrowings. The government also restrained the non-priority expenditure through austerity measures and biometric verification of beneficiaries. For the first time in 77 years, UT contributed to the contingency funds created by RBI.


Lieutenant Governor, Manoj Sinha, Chief Secretary, Atal Dulloo and Principal Secretary Finance, Santosh Vaidya led the UT’s efforts in this direction. Crucial meetings were held in June and July 2024 in Ministry of Home Affairs and Ministry of Finance to review the fiscal performance of the UT Government. Union Home Minister and Union Finance Minister personally reviewed the fiscal management of the UT Government.


Considering the challenges faced as also the reforms undertaken by the UT government, the Central Government has approved the special financial support of Rs.17,000 crore for Jammu and Kashmir. As a result of this Rs. 17,000 crore of special package, the fiscal deficit to GDP ratio of Jammu and Kashmir will reduce to 3.0% in the financial year 2024-25. The Union Government will provide for the salary, pension and other costs of Jammu and Kashmir Police for which an allocation of Rs 12,000 crore has been made in the Union budget. In addition, a special grant of Rs 5,000 crore is being provided to Jammu and Kashmir.


As part of the special package, the UT government has also committed to discharge its dues with J&K Bank in timely fashion. In fact, the UT government has repaid about Rs. 4,600 crore to the Bank to clear the past dues. It will reduce the fiscal stress of the UT government in multiple ways. The package will provide additional fiscal space to the Government to work towards fulfilling the developmental needs and aspirations of the people. It will also enable J&K police to undertake upscaled investments in modern weapons, police housing, and infrastructure facilities.


The budget of Jammu and Kashmir for 2024-25makes provisions for the ongoing initiatives for infrastructure development, sustainable agriculture, new industrial estate, PRI level works, employment generation, developing tourism, and social inclusion. The UT’s budget for 2024-25 of Rs. 1,18,390 crore provides for the following major outlays –


Major Outlays under Budget 2024-25

  1. Rs. 9400 crore for subsidy and budgetary support for purchase of power from the National grid and the Power purchase agreements with power generation companies.

  1. Rs. 3983 crore for Construction of roads & bridges under PMGSY, CRIF, NABARD loan schemes& Bridge scheme.

  1. Rs. 1875 crore for rejuvenating school education infrastructure and services through funding of Samagra Shiksha Abhiyan (SSA), career counselling services, and setting up of modern schools for quality education with PM SHRI funding

  1. Rs. 1808 crore for strengthening decentralized governance by providing for local area development works of PRIs, ULBs, BDCs and DDCs.

  1. Rs. 1714 crore provisioned for tap-water connectivity for rural areas under Jal Jeevan Mission.

  1. Rs. 1484 crore for completion of Smart City projects in Srinagar and Jammu cities, construction of infrastructure projects under Jhelum Tawi Flood Recovery Project (JTFRP), construction of sewerage treatment plants in urban areas, and development of new townships for housing.

  1. Rs. 1430 crore for comprehensive social security coverage under assistance schemes for Old Age, Widow, and Disabled, and for the women empowerment interventions of Ladli Beti and Marriage Assistance schemes.

  1. Rs. 1317 crore for strengthening infrastructure and services in the health sector under National Health Mission mechanism.

  1. Rs. 1104 crore for construction of own houses of houseless poor families in rural areaswith PM Awas Yojana- Grameen support

  1. Rs. 1068 crore for Provision for salaries, food grains, cash assistance for Kashmiri migrants and construction of transit accommodation for Kashmiri migrant employees.
  2. Rs. 1021 crore for transforming agriculture and allied sectors of the UT through the Holistic Agriculture Development Programme (HADP), with the five-year outlay of Rs 5013 crore, including provisions for IFAD funded J&K Comprehensive Investment Plan (JKCIP) and development of cold storage and high density plantation.

  1. Rs. 923 crore for development and upgradation of Industrial Estates, for providing GST refund incentive and incentives as per the Industrial Policy for industrial units, promotion of trade through JKTPO’s events for boosting investment and employment

  1. Rs. 776 crore for equity support for the hydro electric projects at Ratle, Kwar, and Kiru, which would provide stable revenue source and cheaper power.

  1. Rs. 586 crore for Universal health insurance coverage for all families of Jammu & Kashmir.

  1. Rs. 500 crore for providing of drugs, machinery and equipments for health institutions.

  1. Rs. 475 crore for upgradation infrastructure of colleges and universities and for rollout of the National Education Policy.

  1. Rs. 518 crore for promotion of Tourism, development of new tourism destinations and new circuits, construction of ropeways, conduct of Shri Amarnath Ji Yatra and film festival and promotion policy.

  1. Rs. 445 crore for improving sanitation and waste disposal facilities, IHHLs, CSCs & achieving ODF+ status in the rural areas.

  1. Rs. 390 crore for flood management projects of river Jhelum.

  1. Rs. 405 crore for schemes for self-employment, Start-ups, Seed Capital Fund, implementation of Mission Youth schemes, and support to self help groups for generation livelihoods.

  1. Rs. 179 crore for construction of security related infrastructure, police housing colonies, bunkers in border areas and installation of CCTVs in police stations.

  1. Rs. 150 crore for installation of solar rooftops and solar pumps.

  1. Rs. 335 crore for creation of sports infrastructure, heritage preservation, promotion of festivals and theatre and development of Infrastructure and initiatives for welfare of Tribals, like tribal hostels, milk villages, nomad shelters, etc.

  1. Rs. 100 crore for Capital support for revitalization of Regional Rural Banks (RRBs) and Cooperative Banks.

  1. Rs. 500 crore for MGNREGA works at Gram Panchayat level.

  1. Rs. 401 crore for development of Dal lake, afforestation, wildlife management, and preservation of protected areas.
  2. Budget Highlights 2024-25
    • • Competitiveness Improvement of Agriculture and Allied Sectors project in Jammu and Kashmir (JKCIP) at an estimated value of USD 100 million loan from International Fund for Agricultural Development (IFAD to be implemented.

      • • Implementation of all 29 projects approved under Holistic Agriculture Development Programme for Rs 5013 crore over five years.

      • • 25,000 MTs of Controlled Atmosphere (CA) storage capacity to be added.

      • • Development of Chrysanthemum theme Park at Cheshmashahi, Srinagar.

      • • 60,000 backyard poultry units in rural areas.

      • • Establishment of Micro Food Processing Units for creating employment opportunities, especially in rural areas.

      • • Construction of 6 Grain storage units in 6 districts which are deficit in grain storage facility under the Scheme “World’s Largest Grain Storage”.

      • • 12,000 additional Self Help Groups (SHGs) to be formed.

      • • 80,000 houses to be constructed under Pradhan Mantri Awas Yojana Gramin (PMAY-G).

      • • 26,000 hectare area to be covered under Integrated Watershed Management Programme (IWMP)

      • • New 12 off-beat tourist destinations, 6 each in Jammu and Kashmir divisions, to be developed. Keran as border tourist village, Tosamaidan and Sitharan as circuits.

      • • Revival and restoration of 75 identified heritage sites/cultural sites. Establishment of 8 cultural centers.

      • • 46 estates to be developed to fulfill the goal of ‘Made in Jammu and Kashmir’.

      • • Under Jammu and Kashmir Rural Employment Generation Programme (J&K REGP), 1,372 units are targeted to be setup during 2024-25.

      • • New Start-up Policy to be introduced for creating entrepreneurship ecosystem.

      • • Two Cancer Institutes’ at Jammu and Srinagar to be made fully operational during 2024-25.

      • • Enhancing DNB Seats to 400 and creation of ABHA IDs for 1.35 crore population.

      • • 100% screening of 30+ age population for hypertension and diabetes.

      • • AIIMS, Awantipora to be made functional by March, 2025.

      • • New Nursing College at Handwara to be set-up.

      • • Attainment of TB free status in all the remaining districts.

      • • 2,176 new Kindergartens to be established.

      • • 18,499 Schools to be provided sports equipments’, 2,584 Schools to be provided ICT labs and Smart Classrooms, 43 Robotic Labs and 30 Virtual Reality Labs to be established.

      • • Establishment of Science Centres in 100 Schools and vocational Education to be introduced in new 554 Schools.

      • • 20 national sports events to be organized in 2024-25.

      • • Placement drives for 1,000 pass outs to be organized in collaboration with big business and industrial establishments.

      • • New initiative to create ecosystem for promotion of enterprises and self-employment, generate over 5 lakh opportunities for self-employment and expand investments through credit support.

      • • New age courses to be introduced in 10 Industrial Training Institutes.

      • • Outreach and counselling activities to be conducted for aspiring job seekers through Model Career Centers (MCCs).

      • • All persons with disability to be covered under Nirmaya Health Insurance Scheme.

      • • 11 Shakti Sadan and 04 Sakhi Niwas to be established.

      • • 7,708 women beneficiaries with establishment of 1,502 units to be targeted under self-employment scheme

      • • 80 schools to be transformed into smart schools in tribal areas.

      • • An addition of 3,014 MW installed capacity in phased manner till year 2026-27 with cumulative increase of design energy of 10,714.50 Million units per annum.

      • • Creation/Augmentation of 38,150 KVA Distribution Transformer, Replacement of 14,000 Ckm of dilapidated LT bare conductor.

      • • Providing of reliable power supply to the far-flung and remote areas of Gurez.

      • • 5,000 Kilometres of road length to be black-topped during 2024-25

      • • 194 new projects sanctioned at an estimated cost of Rs 1023.42 crore under NABARD to be taken for execution during 2024-25.

      • • Rs 1000 crore new road and bridge projects to be taken up under NABARD loan assistance under RIDF Tranche XXX during 2024-25.

      • • Completion of 60 ongoing bridges is targeted during 2024-25.

      • • 4.26 lakh households to be provided Functional Household Tap Connections (FHTCs) to achieve 100% coverage under tap water connections.

      • • Shahpur Kandi Dam project likely to be commissioned which will benefit Jammu and Kashmir with 1,150 cusecs of irrigation water facilities to 32,186 hectare of land in Kathua and Samba.

      • • Balance work of Tawi Barrage to be completed. 197 minor irrigation schemes to be completed during 2024-25, which envisages creation of irrigation potential of 38,723 hectare.

      • • All projects to be completed under Smart city mission.

      • • Western Foreshore Road along Dal Lake, Srinagar to be constructed.

      • • Introduction of 200 e-buses under PM e-Bus Sewa scheme.

      • • Inter Model Station (IMS) in collaboration with NHAI to be developed at Katra.

      • • Finalization of Master Plan of all 78 Cities/Towns.

      • • Development of Sewerage network of Houseboats in Dal-Nigeen Lake, including sewerage network of hamlets inside lake.

      • • Implement of Van se Jal, Jal se Jeevan, an innovative water conservation techniques through water shed management approach, promote sustainable agricultural practices and revitalize traditional water bodies, including wetlands.

      • • Conservation and rejuvenation of Wular Lake to enhance the livelihood of the local people, through ecotourism.

      • • Completion of construction of 1,500 flats as transit accommodation for Kashmiri Migrant employees during 2024-25.

      • • Remaining 276 posts out of 6,000 posts under PM-Package for Kashmiri Migrants to be filled in 2024-25.

      • • e-KYC of all beneficiaries under Public Distribution System to be completed.

      • • Roll out of Smart PDS in Jammu and Kashmir.

      • • 4,000 AC agriculture pumps to be replaced by Solar Pumps in phased manner under PM-KUSUM

      • • Around 04 MW rooftop solar power plants to be installed on the government buildings. 22,494 Government buildings to be 100% solarised in phased manner.

      • • 5,000 improved biomass cook-stoves to be provided in the tribal areas to reduce indoor air pollution and fuel use.

      • • Solarization of all routes and camps of Shri Amarnath Ji Yatra.

      • • Operationalization of Bio-Technology Park at Kathua.

      • • Young Scientist Awards/Fellowships among the outstanding researchers.

      • • IDTR at Kot Bhalwal, Jammu to be completed and operationalized in 2024-25.

      • • Institute of Inspection and Certification Centre (ICC) at Samba, Jammu to be completed in 2024-25.

      • • Implementation of Vehicle Location Tracking Platform (VLTP) for safety of women in public transport vehicles.

      • • Automated Testing Stations (ATSs) to be established for testing fitness of motor vehicles in private sector.

      • • Construction of Modern Bus Terminal at TRC, Srinagar.
Related Posts