Jammu, Mar 7 (PTI) Jammu and Kashmir's first budget in seven years, presented on Friday by Chief Minister Omar Abdullah with an outlay of Rs 1.12 lakh crore, unveiled a series of welfare and development initiatives for the Union Territory during financial year 2025-26, reflecting "people's aspirations".

The budget emphasises inclusive growth, fiscal prudence, and strategic investments in key sectors, including infrastructure, agriculture, industry, healthcare, education, digital governance, and tourism.

"We are focused on bridging regional disparities, empowering youth and women, and fostering a business-friendly environment to attract investment and innovation," Abdullah who also holds the finance portfolio said while presenting his maiden budget in the assembly.

With an aim to unlock Jammu & Kashmir's industrial potential, Abdullah announced a significant step towards establishing a leather tanning industry.

"Currently, around 5,000-6,000 pelts produced daily in Kashmir go to waste due to the absence of processing facilities. To harness this opportunity, the government will formulate a policy to promote leather tanning industries, ensuring value addition. Processing these skins into leather will contribute an additional Rs 100 crore to J&K's economy," he said.

Emphasizing the importance of a resilient rural economy, Abdullah announced the launch of the "J&K Green Mission" in 2025.

"We will unite communities to make villages clean and green through waste segregation, proper disposal, and vermi composting," he said.

To ensure sustainability, the government will implement the Own Source Revenue (OSR) policy to make every village panchayat self-sufficient in the next five years.

Additionally, under the Pradhan Mantri Awas Yojana - Gramin, 3.40 lakh houses have been sanctioned, with 50,000 more to be built in 2025-26, he said.

Buoyed by the tourism sector's record-breaking show in 2024, with 2.36 crore tourist footfalls, Abdullah announced a strategic expansion plan under the SPREAD (Sustainable Promotion of Emerging Alternate Destinations) initiative.

"This initiative will help develop world-class alternative destinations across J&K, reducing pressure on heavily visited locations. With the Government of India's support, we are already in the planning phase," he said.

He announced an eco-tourism policy that will ensure sustainable tourism while tackling waste management challenges, particularly plastic waste at tourist sites.

A multi-stakeholder advisory committee to address issues in the tourism and hospitality sector will be set up too, he said, adding that Gulmarg Gondola attracted 7.68 lakh visitors in 2024, and the Kashmir Marathon saw 1,800 global participants.

"Tourism's contribution to GSDP will be increased from 7 per cent to 15 per cent in the next 4-5 years," he added.

In order to bolster J&K's startup ecosystem, the government has also allocated Rs 50 crore for providing financial aid, mentorship and incubation for entrepreneurs.

"This will foster innovation, empower startups, and position Jammu and Kashmir as a dynamic hub for entrepreneurship," Abdullah said.

For MSMEs (micro, small and medium enterprises), he announced a new policy to provide price preference to local small businesses in public procurement, addressing concerns regarding central government's online marketplace GeM.

To combat illegal mining, he said that a mining surveillance system using satellite imagery will be implemented in collaboration with BISAG. Additionally, handheld e-challan devices will be introduced for enforcement, he said.

Abdullah also unveiled SEHAT App, saying this is set to revolutionise healthcare in J&K.

"This app will offer teleconsultation services, online doctor appointments in government hospitals, and a digital health records system integrated with AB-PMJAY-SEHAT insurance," he said.

The chief minister also added that the app will include AI-powered diagnostics, e-prescriptions, medicine delivery, and emergency health support. "Ambulance services and real-time updates on preventive care, vaccinations, and wellness programs will also be provided." On the education sector, he said that the government will upgrade 40 higher secondary schools -- one boys' and one girls' school per district -- into integrated K-12 institutions.

"We are committed to transforming J&K into an educational hub by fully implementing NEP 2020 and launching four-year undergraduate programmes in all colleges," Abdullah said.

He also announced 600 additional seats in polytechnic colleges.

The government will encourage private universities to set up satellite campuses in J&K, he added.

To transform J&K into a hub of sporting excellence, the budget has envisaged setting up of national centres of excellence for water sports at Dal Lake (Srinagar) and Basohli (Jammu) and a gymnastics academy at Gindun Rajbagh and Khel Gaon, Nagrota.

The FY26 budget has proposed four state-of-the-art cricket academies with an allocation of Rs 8 crore, youth hostels in Jammu & Kashmir divisions with an outlay of Rs 10 crore, apart from the development of 247 playfields, stadiums, and sports courts.

The government aims to engage "75 lakh youths in sports activities across J&K, fostering a culture of fitness and excellence", he added.

The government has plans to establish the Jammu & Kashmir Skill and Entrepreneurship University (J&K SEU), he said.

"This university will offer cutting-edge training in technology, healthcare, tourism, renewable energy, and traditional crafts while fostering innovation and industry partnerships," Abdullah said.

To strengthen food security, Abdullah announced that 10 kg of free ration per person will be provided to AAY (Antyodaya Anna Yojana) beneficiaries from April 1 this year.

For social security, pension amounts have been increased to Rs 1,250 per month for persons below 60 years, Rs 1,500 per month for persons aged 60-80 years, and Rs 2,000 per month for those aged 80 and above, he said.

"This will increase the total pension outlay from Rs 1,209 crore to Rs 1,755 crore annually," he added.

Announcing free public transport for women, he said, "On International Women's Day, I announce free ridership for women on all government-owned public transport, including e-buses, starting April 1, 2025." "This will enhance access to education and employment while ensuring safer, more affordable travel," he said.

He further proposed that the financial aid under the Marriage Assistance Scheme for AAY category girls will be enhanced from Rs 50,000 to Rs 75,000.

About hydropower and energy reforms, he said J&K has a hydropower potential of 20,000 MW, but only 3,400 MW has been harnessed and added that initiatives are being taken so that Pakal Dul, Kiru, Kwar, and Ratle projects could add 3,000 MW by 2027.

"A new hydropower policy will be formulated to attract private investment and fast-track projects," he said.

The chief minister also announced 200 units of free electricity per month for Antyodaya families.

On infrastructure and government housing, he said a new legislative complex in Jammu has been allocated Rs 50 crore (Rs 208 crore total project cost). Additionally, 4,500 government residential units in Jammu and Srinagar will be constructed, with new projects for 300 more units.

"Twin towers with 64 modern 3BHK & 4BHK flats at Canal Road, Jammu (Rs 20 crore allocation) will be constructed too," he said.

"This budget is a step towards a self-reliant, prosperous, and equitable Jammu & Kashmir," Abdullah said.

With major investments in industry, tourism, education, and infrastructure, the budget lays the foundation for economic growth, sustainability, and social welfare, he added. PTI AB HVA