J&K’s Interim Budget of Rs 1.18L Cr Proposed by Sitharaman

The Union Territory of Jammu and Kashmir (J&K) has received an interim Budget of Rs 1.18 lakh crore for the fiscal year 2024-25, as proposed by Finance Minister Nirmala Sitharaman in Parliament on Monday. The interim Budget is expected to enhance the development and security of the UT, which was bifurcated from the erstwhile state of Jammu and Kashmir in 2019.

Key Highlights of the Interim Budget

• The interim Budget envisages a fiscal deficit of Rs 20,760 crore, which is 7.88 per cent of the gross state domestic product (GSDP).
• The revenue receipts for the next fiscal are estimated at Rs 97,861 crore, which include Rs 71,000 crore as share in central taxes and duties, Rs 16,000 crore as grants-in-aid from the Centre, and Rs 10,861 crore as own tax and non-tax revenue.
• The capital expenditure for the next fiscal is proposed at Rs 38,566 crore, which is 14.64 per cent of the GSDP. This includes Rs 18,000 crore for infrastructure development, Rs 10,000 crore for social sector schemes, and Rs 10,566 crore for other capital outlay.
• The total expenditure for the next fiscal is projected at Rs 1,18,621 crore, which is 45.02 per cent of the GSDP. This comprises Rs 80,055 crore for revenue expenditure and Rs 38,566 crore for capital expenditure.

Major Schemes and Initiatives

• The interim Budget allocates Rs 5,000 crore for the Prime Minister’s Development Package (PMDP), which was announced in 2015 to provide a comprehensive package of development initiatives for J&K.
• The interim Budget also provides Rs 2,000 crore for the Back to Village (B2V) programme, which was launched in 2019 to strengthen the grassroots democracy and governance in J&K.
• The interim Budget earmarks Rs 1,000 crore for the Mission Youth, which was launched in 2020 to empower the youth of J&K with skill development, employment opportunities and sports facilities.
• The interim Budget also announces Rs 500 crore for the Jhelum-Tawi Flood Recovery Project, which was initiated in 2016 to restore the infrastructure and livelihoods affected by the floods of 2014.

Security and Governance Reforms

• Sitharaman said that the crucial reforms undertaken in 2019 enabled “path-breaking” measures by the UT Government to decentralise governance structure, promote inclusive development, upscale revenue generation and step up infrastructure development.
• She said that the Government is maintaining law and order to ensure security while simultaneously implementing initiatives for economic and social development. She said that the Government has adopted a policy of zero tolerance against terrorism.
• She said that security forces are taking effective and continuous action in countering terrorism. She said that due to the effective measures and efforts taken, the security scenario in J&K has significantly improved.