Jammu, Feb 6 (PTI) Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented the Union Territory's Budget for 2026-2027 in the Legislative Assembly, and said the financial plan aims to lay a strong foundation for sustainable growth, social harmony, and economic prosperity in the Union Territory.

He said his government is committed to transforming the Union Territory into a modern, progressive and economically vibrant region by promoting investment, innovation and participatory governance.

"With deep humility and unwavering resolve, I rise today to present my second Budget as Finance Minister. It is a privilege to be entrusted with the responsibility of shaping the financial future of our land," Abdullah said while presenting the Budget.

Describing the Budget as a roadmap for development, he said, "This Budget is not merely a ledger of figures, it is a fiscal compass charting our path towards a brighter horizon. It lays strong foundations for enduring economic growth, social harmony and sustainable prosperity." The chief minister urged members of the House to work collectively for the region's development.

"As we embark on this shared journey, I invite every honourable member of this august House to come together and work collectively to build a strong and flourishing Jammu and Kashmir," he said.

Highlighting the resilience of the people, Abdullah, who also holds the Union Territory's finance portfolio, said his government is committed to transforming Jammu and Kashmir into a progressive and economically vibrant region.

"Together, we will turn obstacles into stepping stones and aspirations into achievements," he added.

The chief minister said the government is focused on creating a business-friendly ecosystem to attract investment and innovation. He said the Budget was prepared after wide consultations with elected representatives, industry leaders, and stakeholders to ensure it remains people-centric.

Referring to challenges faced during the past year, Abdullah said geopolitical factors, the Pahalgam terror attack and devastating floods in parts of Jammu region adversely impacted economic activity.

"All sectors, including tourism, handicrafts, horticulture and agriculture were badly affected, leading to job losses and financial distress for families," he said.

Abdullah said the Budget focuses on inclusive and sustainable growth through strategic investments in infrastructure, public services and governance. He added that the government aims to create opportunities for youth and women.

Flagging fiscal constraints, the chief minister said own tax and non-tax revenues meet only about 25 per cent of the Union Territory's budgetary requirements.

He said revenue collections stood at Rs 10,265 crore from taxes and Rs 4,964 crore from non-tax sources till December 31, 2025.

The chief minister said nearly 60 per cent of the overall expenditure is committed towards salaries, pensions and debt servicing, adding that the government is taking steps to manage debt and curb non-priority spending.

"We are strengthening debt sustainability by keeping borrowings within approved limits and improving liquidity management. For the third consecutive year, austerity measures have been enforced," he said.

Abdullah said reforms in the power sector, including expansion of the consumer base and execution of loss reduction works, are being undertaken to ease financial stress.

He also acknowledged the Centre's support in addressing fiscal challenges. "The central government has remained cognizant of our difficulties and consistently supported us through special assistance," he said, adding that Jammu and Kashmir has been brought under the Special Assistance to States for Capital Investment scheme.

The chief minister said the funds under the scheme would be utilised for infrastructure development, hydroelectric projects and disaster mitigation works, particularly in flood-affected areas. PTI AB TRB