In the backdrop of the financial constraints currently being faced by the Union Territory, Jammu and Kashmir Chief Minister Omar Abdullah on Thursday met Union Finance Minister Nirmala Sitharaman in New Delhi. The CM is understood to have sought additional support in terms of funds for the UT in order to keep up the pace of development works.
In the meeting also attended by the senior officials key developmental priorities for Jammu and Kashmir were discussed. “The meeting focused on strengthening infrastructure, boosting investment and ensuring continued financial support for welfare-driven initiatives in J&K,” the CM’s office said.
However, officials said the primary focus of the meeting was securing central assistance to tackle the severe fiscal challenges confronting the UT. They said J&K’s finances have been significantly impacted by multiple factors, including a substantial decline in its share of Goods and Services Tax revenue.
It was conveyed to FM Nirmala Sitharaman that the financial scenario of Jammu and Kashmir which has taken a hit due to reconstruction and rehabilitation measures undertaken by the Government first in the aftermath of Pahalgam terror attack followed by heavy rains during Monsoon including cloudbursts and landslides.
Pertinently, Omar, who also holds charge of the Finance Department and presented his maiden budget on March 7 this year, is reported to have sought urgent Central assistance to bridge the revenue deficit and overcome the difficulties created by these economic and natural setbacks.
Asserting that Jammu and Kashmir has been facing financial constraints, sources said the CM sought Central assistance to address the fiscal challenges especially in the wake of steep decline in reduction in tourists due to April 22 Pahalgam terror attack and damages caused to Government infrastructure and private property due to heavy rains this Monsoon in which several lives were lost.
“Finances of Jammu and Kashmir have also been severely impacted by various factors which included a substantial decline in its share of Goods and Services Tax (GST) revenue,” the sources said adding that relief and reconstruction efforts post floods and landslides have also caused extra burden on the UT exchequer.The Government is expecting the Central aid for reconstruction and rehabilitation of the people badly affected by floods and landslides triggered by heavy rains during the Monsoon especially in the month of August.
In the UT, the Government departments were engaged in assessing requirements for next year’s budget (2026-27) which will be presented in the Legislative Assembly, most likely in the month of March next, like this year. Revised Budgetary Estimates for current financial year of 2025-26 will also be presented along with the budget.Omar had presented Rs 1,12,310 crore worth budget for 2025-26 on March 7 this year which was Rs 6418 crore less than 2024-25.
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