Jammu, Mar 7 (PTI) Chief Minister Omar Abdullah on Friday presented a zero-deficit budget in the Jammu and Kashmir assembly, announcing an outlay of Rs 1.12 lakh crore for 2025-2026 and emphasising multi-sector welfare and development of the Union Territory.

Abdullah, who also holds the finance portfolio in the National Conference-led government, presented his maiden budget in the legislative assembly.

Jammu and Kashmir, which was accorded the Union Territory status after Ladakh was carved out as a separate UT in 2019 following the abrogation of Article 370, has witnessed its first annual budget since 2018 when the erstwhile PDP-BJP government tabled the then state's document of annual finances.

Amid thunderous applause, Abdullah began his speech with a Persian couplet and said, "I stand before you today to present my first budget as Finance Minister, marking the first budget of a collective government in seven years. While it is an honour, I am acutely aware of the weight of responsibility that comes with being the custodian of J&K's finances at this crucial juncture." He said that it is a road map for a new and prosperous J&K, reflecting the aspirations of our people and laying a strong foundation for economic growth, social progress and sustainable development.

"The total net budget estimates for fiscal 2025-26 are Rs 1,12,310 crore, excluding provisions for ways and means advances and overdrafts," Abdullah said.

With a focus on a zero-deficit budget, he said: "The expected revenue receipts are Rs 97,982 crore and capital receipts are Rs 14,328 crore. Similarly, revenue expenditure is estimated to be Rs 79,703 crore and capital expenditure Rs 32,607 crore." Detailing the estimates, he said gross receipts are estimated at Rs 1,40,309.99 crore, including provisions for an overdraft of Rs 28,000 crore.

"Given these receipts, total gross expenditure is estimated to be Rs 1,40,309.99 crore," he added.

Abdullah highlighted that the Union Territory's own revenues, both tax and non-tax, are estimated at Rs 31,905 crore.

"Additionally, Rs 41,000 crore is expected as central assistance and Rs 13,522 crore as CSS and PMDP for the Union Territory of Jammu and Kashmir," he added.

Revealing fiscal indicators, he projected the tax-GDP ratio at 7.5 per cent for 2025-26.

The budget has estimated the fiscal deficit for 2025-26 it to be at 3.0 per cent of the Union Territory's GDP.

"This is substantially lower than the 5.5 per cent in 2024-25 (RE)," he added.

The GDP for 2025-26 is projected at Rs 2,884,22 crore, reflecting a growth of 9.5 per cent over the previous year, he added.

Abdullah emphasized that the budget prioritises inclusive growth, fiscal prudence, and strategic investments in infrastructure, agriculture, industry, healthcare, education, and digital governance.

"We aim to bridge regional disparities, empower youth and women, and foster a business-friendly environment to attract investment and innovation," he said.

To ensure this budget truly reflects the aspirations of our people, he said, "we engaged with elected representatives, industry leaders, and key stakeholders, incorporating their insights to create a people-centric roadmap for a better quality of life for all".

The chief minister further said that the government has set new standards of engagement with people's representatives and taking feedback by directly involving each member of the house in the budget consultation process.

Abdullah expressed confidence that Jammu & Kashmir is on the threshold of a new era of peace and prosperity, with a semblance of normalcy returning after over three-and-a-half decades of turmoil.

"This improved environment contributes to economic progress, with J&K's economy expanding from Rs 1,64,103 crore in 2019-20 to Rs 2,45,022 crore in 2023-24. In 2024-25, the primary, secondary, and tertiary sectors are projected to contribute 20 per cent, 18.30 per cent, and 61.70 per cent to GSVA, respectively." "It is a testament to the strong foundations laid by the leadership of J&K that despite its geographical challenges and multi-decade turmoil, socio-economic indicators continue to remain robust," he said.

The chief minister further expressed confidence that J&K will emerge as a leading region in development, playing a vital role in India's vision of development by 2047. PTI AB HVA