Calls Budget a “Love Letter” to the People of Jammu and Kashmir
Says UT with Assembly is by Far the Worst Form of Government in the Country
Announces 200 Units of Free Electricity for AAY Families, ₹400 Crore for Tourism – Key Points
Suhail Khan
Jammu, Mar 07:Jammu and Kashmir Chief Minister Omar Abdullah on Friday presented the Union Territory’s first budget since the abrogation of Article 370.
Abdullah, as per Kashmir Despatch, stated that J&K is at 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.”
While presenting the budget, Abdullah hailed Prime Minister Narendra Modi, Union Home Minister Amit Shah, and Union Finance Minister Nirmala Sitharaman for their support in various sectors.
The last budget session took place in 2018 under the then PDP-BJP government in the erstwhile state of J&K, which was accorded the status of a Union Territory after Ladakh was carved out as a separate UT following the abrogation of Article 370 on August 5, 2019.
CM Omar Abdullah announced a host of measures aimed at empowering youth and women, addressing regional disparities, and working toward the restoration of statehood.
“This Budget emphasises inclusive growth, fiscal prudence, and strategic investments in infrastructure, agriculture, industry, healthcare, education, and digital governance. We are focused on bridging regional disparities, empowering youth and women, and fostering a business-friendly environment to attract investment and innovation,” Abdullah said.
Abdullah mentioned that Jammu and Kashmir is on the path to lasting peace. This was the first budget to be presented by the elected government in the last seven years.
“This Budget is more than just a financial statement—it is a roadmap for a new and prosperous Jammu and Kashmir, reflecting the aspirations of our people and laying a strong foundation for economic growth, social progress, and sustainable development,” he said.
Here are the key points of the Jammu and Kashmir Budget 2025:
₹815 Crore for Agriculture
Abdullah allocated ₹815 crore for agriculture, which will empower the state. The Chief Minister said that the UT will focus on horticulture, promote a two-crop pattern, and boost the wool processing and leather tanning industry.
“For 2024-25, ₹815 crore has been allocated, aiming to double value addition, boost growth by 11%, create 2.88 lakh jobs, and establish 19,000 enterprises,” he said.
Tourism Development
Another key area of focus was tourism development, under which Abdullah allocated ₹390.20 crore. The government plans to increase homestays, promote water sports, and develop Sonmarg as a winter sports destination. Jammu will get a new water park in Sidhra, and Basholi will be developed as an adventure destination.
Free Electricity for AAY Households
Fulfilling a major poll promise, the Chief Minister announced 200 units of free electricity per month for all Antyodaya Anna Yojana (AAY) households in Jammu and Kashmir. Integrated with the PM SuryagharBijli Yojana, this initiative will facilitate the installation of grid-connected solar systems, ensuring energy security for the most vulnerable sections of society while eliminating electricity bills.
“With an investment of ?750 crore over five years, this step will reduce AT&C losses and promote sustainable energy. I urge this august House to support this transformative move towards a greener, more inclusive, and self-reliant Jammu & Kashmir,” he said.
Additionally, the chief minister stated, the government will construct dedicated Linemen huts and provide essential facilities for thousands of power sector workers who operate in extreme conditions. A Training Institute will also be established to enhance skills and train the technical support staff of power development department to ensure they are fully equipped with the technical skills.
For 2025-26, the Power Sector has been allocated ?2,021.37 crore under capital expenditure, marking an increase of ?762.80 crore from the revised allocation of 2024-25, he informed the House.
10 kg Free Ration for AAY Households
As an additional measure of social security, the Chief Minister announced that all AAY beneficiaries will receive 10 kg of free ration per person per month starting April 1, 2025. This initiative will ensure enhanced nutritional support for vulnerable families.
“Our government is committed to strengthening food security through a robust and efficient Public Distribution System (PDS). Smart PDS will be implemented in 2025-26 to enhance service delivery, prevent leakages, and ensure fair and transparent distribution of essential commodities across Jammu & Kashmir,” he said.
Free bus rides for women in J&K
Marking International Women’s Day, the Chief Minister announced that women across Jammu and Kashmir will enjoy free ridership on government-owned public transport, including e-Buses, starting April 2025.
Marriage Assistance enhanced
In a significant relief for economically weaker sections, the Marriage Assistance under the Scheme for EWS category girls has been enhanced from ?50,000 to ?75,000.
Pension Enhancements for vulnerable sections
Fulfilling another commitment, the Chief Minister increased pensions for 10,07,324 individuals across J&K under the Integrated Social Assistance Scheme (ISSS) and the National Social Assistance Programme (NSAP). The revised pension structure is ?1,250 per month for individuals below 60 years; ?1,500 per month for those aged between 60 and below 80 years and ?2,000 per month for those aged 80 years and above.
Stamp duty exemption for property transfers within blood relations
The Chief Minister announced a complete exemption of stamp duty on property transfers through gifts within blood relations. The move will promote ease of transactions, reduce inheritance disputes and encourage legal documentation of property transfers.
Sectoral Allocations and Development Initiatives
Health & Medical Sector: ?1,750.50 crore allocated, an increase of ?643.71 crore. The SEHAT App will soon be launched to improve healthcare accessibility.
Education Sector: ?1,388.97 crore allocated, an increase of ?242.75 crore.
Sports Sector: ?152.69 crore allocated, an increase of ?36.91 crore.
Roads & Bridges: ?4,062.93 crore allocated, an increase of ?439.28 crore.
Irrigation & Water Supply: ?2,662.71 crore allocated, an increase of ?817.87 crore.
Housing & Urban Development: ?2,761.74 crore allocated, an increase of ?823.53 crore.
Giving details of budgetary proposals in various sectors, CM said that in power sector, J&K shall aim to achieve self sufficiency in power & energy by 2027-28 with 7,500 MW new hydro projects & smart grid investments to ensure 24/7 power supply.
“The government is committed to upholding journalistic freedom. We are committed to strengthening press infrastructure and protecting the rights of journalists. We will provide dedicated space for journalists in Jammu and Kashmir press clubs,” he said.
His budget speech further proposed zero stamp duty on property transfers to blood relatives.
Meanwhile, on the occasion, Omar Abdullah stated that a Union Territory with an assembly is the “worst form” of government in the country, adding that the country should either have only states or only UTs.
“I still maintain that a UT with an Assembly is by far the worst form of government in the country. I have no hesitation in saying this. There should only be two systems in this country—either you have a UT without an Assembly or a state,” the J&K CM said while addressing a press conference in Jammu.
He further described the Budget as a “love letter” to the people of Jammu and Kashmir.
Abdullah said that the government’s effort has been to present a budget that benefits the people and makes their daily lives easier.
“I am fully aware that after 2018, once again, the Jammu and Kashmir Assembly has witnessed the presentation of the state budget. Along with that, I also realise that this is the first time in the state’s history that the Chief Minister of Jammu and Kashmir, in the capacity of the finance minister, has presented the budget. Our effort has been to present a budget that benefits the people and makes their daily lives easier, accelerating the pace of development. We never claimed that everything would be achieved in one budget. I am not saying everything is done, but we have laid down a blueprint for the next five years,” Omar added.
The Chief Minister said, “We want a vibrant press in J&K. The Press Club in Jammu is operational, but the Srinagar one is not. We will take steps to re-operationalise the Srinagar Press Club.”
He further stated that the state government is formulating a new hydropower policy.
“It is currently at the formulation stage in the Power Department. The framework of the policy is ready. Its aim is to focus on growth and transmission and distribution,” he added.
The Jammu and Kashmir CM said that the government will try to attract the southern film industry to J&K.
“We will try to get the southern film industry to come to Jammu & Kashmir to shoot their films. This will help us attract more tourists from south India,” Omar Abdullah said.
