Jammu, Feb 6 (PTI) Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented a Rs 1.27 lakh crore Budget for 2026-2027 in the Legislative Assembly, asserting that 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 J&K into a modern, progressive and economically vibrant region by promoting investment, innovation and participatory governance.

Presenting the Budget in the Legislative Assembly, Abdullah, who also holds the finance portfolio, estimated total gross receipts and expenditure at Rs 1,27,767 crore.

"The total gross receipts include provision for ways and means advances and overdraft of Rs 14,000 crore. He said the total net Budget estimates for the fiscal stand at Rs 1,13,767 crore, excluding the provision for advances and overdraft.

The Chief Minister said Rs 80,640 crore has been earmarked under revenue expenditure and Rs 33,127 crore under capital expenditure in the Budget estimates for 2026-27.

He added that the expected revenue receipt is projected at Rs 90,018 crore, while capital receipts are estimated at Rs 23,749 crore.

Abdullah said the Union Territory's own revenues, including tax and non-tax sources, are estimated at Rs 31,800 crore.

He said Jammu and Kashmir is expected to receive Rs 42,752 crore as central assistance and Rs 13,400 crore under centrally sponsored schemes (CSS).

Highlighting fiscal indicators, the Chief Minister said the tax-to-GDP ratio is projected at 6.6 per cent for 2026-27, compared to 7.5 per cent in 2025-26.

He said the fiscal deficit for 2025-26 was estimated at 2.98 per cent, substantially lower than 5.5 per cent in 2024-25 (RE).

However, he said the fiscal deficit for 2026-27 is estimated at 3.69 per cent, slightly higher than 3.63 per cent in 2025-26 (RE).

The chief minister said the GDP for 2025-26 was projected at Rs 2,88,422 crore, showing a growth of 9.5 per cent over the previous year, while the GDP for 2026-27 is projected at Rs 3,15,822 crore, indicating a similar growth rate.

He said the Budget aims to sustain economic growth while maintaining fiscal discipline and strengthening development initiatives across Jammu and Kashmir.

"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.

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 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.

"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.

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 J&K has been brought under the Special Assistance to States for Capital Investment scheme.

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

Omar Abdullah announced a series of welfare and development measures to boost the economy, strengthen social sectors and promote sustainable growth in Jammu and Kashmir.

He announced full fee waivers for economically weaker students from Class 9 to college, six free LPG cylinders for eligible households, monthly support for orphan children, scholarships for tribal students and free government transport for persons with disabilities.

The Budget proposes crop insurance for apple, saffron, mango and litchi crops, expansion of storage facilities, promotion of micro and sprinkler irrigation, medicinal plant cultivation, livestock genetic improvement labs in every district and a push for ODF-Plus status in rural areas, he said.

In education and youth empowerment, the government proposed JK e-Pathshala DTH channels for Classes 1–12, modernisation of anganwadi centres, indoor sports facilities in government schools and priority hiring of local youth in subsidised industries. PTI AB TRB