Jammu & Kashmir State Budget 2021-22 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Jammu & Kashmir FY 2021-22
Jammu & Kashmir State Budget 2021-22 Budget at a Glance
Total Receipts
Rs 57,500 crore
+14.5%
Total Expenditure
Rs 69,300 crore
+12.1%
Fiscal Deficit
3.8%
Rs 7,500 crore
Capital Expenditure
Rs 12,500 crore
+27.6%
Tax Revenue
Rs 10,200 crore
+15.9%
Interest Payments
Rs 8,300 crore
12% of expenditure
Jammu & Kashmir Revenue Receipts 2021-22
Own tax revenue vs non-tax revenue breakdown
Jammu & Kashmir Expenditure Breakdown 2021-22
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP â Jammu & Kashmir 2021-22
The fiscal deficit for Jammu & Kashmir in 2021-22 is 3.8% of GSDP (Rs 7,500 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Jammu & Kashmir's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 8,300 crore consume 12.0% of total expenditure.
Jammu & Kashmir State Budget 2021-22 â Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 76,000 crore | 100% |
| 1. Revenue Receipts | Rs 57,500 crore | 75.7% |
| a. Own Tax Revenue | Rs 10,200 crore | 13.4% |
| b. Non-Tax Revenue | Rs 4,500 crore | 5.9% |
| B. Total Expenditure | Rs 69,300 crore | 100% |
| 1. Revenue Expenditure | Rs 56,800 crore | 82.0% |
| 2. Capital Expenditure | Rs 12,500 crore | 18.0% |
| of which: Interest Payments | Rs 8,300 crore | 12.0% |
| C. Fiscal Deficit | Rs 7,500 crore | 3.8% of GSDP |
Source: Jammu & Kashmir State Budget Documents via PRS India. All figures in Indian Rupees.
Jammu & Kashmir Budget 2021-22 Analysis & Highlights
Key Highlights
- Total expenditure at Rs 69,300 crore as Central development spending accelerates
- Revenue receipts recover to Rs 57,500 crore with own tax revenue rebounding to Rs 10,200 crore
- Revenue deficit narrows to Rs 700 crore as strong revenue recovery improves the fiscal position
- Fiscal deficit at 3.8% of GSDP (Rs 7,500 crore), narrowing from pandemic peak
- Capital expenditure reaches Rs 12,500 crore with highways, tunnels, and institutional construction
- Market borrowings at Rs 7,500 crore fund the infrastructure programme
- Total outstanding debt at Rs 94,000 crore with debt-to-GSDP at 47.5%
- Interest payments at Rs 8,300 crore remain among the highest nationally
- Tourism begins recovery with record domestic visitors to Kashmir Valley
- GSDP rebounds to Rs 1,98,000 crore with construction and tourism driving growth
- 4G internet finally restored enabling digital economic normalisation
- Apple economy recovers to near-normal levels with improved market access
Compare Jammu & Kashmir Budget â Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2017-18 | 2018-19 | 2019-20 | 2020-21 | 2021-22 |
|---|---|---|---|---|---|
| Total Expenditure | â | â | â | Rs 61,800 crore | Rs 69,300 crore |
| Revenue Receipts | â | â | â | Rs 50,200 crore | Rs 57,500 crore |
| Capital Expenditure | â | â | â | Rs 9,800 crore | Rs 12,500 crore |
| Fiscal Deficit (% GSDP) | â | â | â | 4.2% | 3.8% |
| Own Tax Revenue | â | â | â | Rs 8,800 crore | Rs 10,200 crore |
Columns showing "â" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Jammu & Kashmir State Budget 2021-22
The Jammu & Kashmir state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Jammu & Kashmir Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Jammu & Kashmir with other states
Side-by-side comparison of fiscal metrics across Indian states