Jammu & Kashmir State Budget 2025-26 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Jammu & Kashmir FY 2025-26
Jammu & Kashmir State Budget 2025-26 Budget at a Glance
Total Receipts
Rs 97,982 crore
+31.7%
Total Expenditure
Rs 1.12 lakh crore
+21.8%
Fiscal Deficit
3.0%
Rs 8,596 crore
Capital Expenditure
Rs 26,909 crore
+80.1%
Tax Revenue
Rs 21,550 crore
+51.2%
Interest Payments
Rs 11,518 crore
10% of expenditure
Jammu & Kashmir Revenue Receipts 2025-26
Own tax revenue vs non-tax revenue breakdown
Jammu & Kashmir Expenditure Breakdown 2025-26
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Jammu & Kashmir 2025-26
The fiscal deficit for Jammu & Kashmir in 2025-26 is 3.0% of GSDP (Rs 8,596 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 is maintaining fiscal discipline close to the recommended limit.
Interest payments at Rs 11,518 crore consume 10.3% of total expenditure.
Jammu & Kashmir State Budget 2025-26 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 1.12 lakh crore | 100% |
| 1. Revenue Receipts | Rs 97,982 crore | 87.2% |
| a. Own Tax Revenue | Rs 21,550 crore | 19.2% |
| b. Non-Tax Revenue | Rs 10,355 crore | 9.2% |
| B. Total Expenditure | Rs 1.12 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 79,703 crore | 71.0% |
| 2. Capital Expenditure | Rs 26,909 crore | 24.0% |
| of which: Interest Payments | Rs 11,518 crore | 10.3% |
| C. Fiscal Deficit | Rs 8,596 crore | 3.0% of GSDP |
Source: Jammu & Kashmir State Budget Documents via PRS India. All figures in Indian Rupees.
Jammu & Kashmir Department-wise Expenditure 2025-26
Top departments by allocation in Jammu & Kashmir for 2025-26
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education | Rs 12,800 crore | Rs 1,500 crore | Rs 14,300 crore | 12.7% |
2. Police & Home Affairs | Rs 8,500 crore | Rs 1,200 crore | Rs 9,700 crore | 8.6% |
3. Public Works & Roads | Rs 3,200 crore | Rs 6,500 crore | Rs 9,700 crore | 8.6% |
4. Rural Development & Panchayati Raj | Rs 6,000 crore | Rs 2,500 crore | Rs 8,500 crore | 7.6% |
5. Energy & Power | Rs 4,800 crore | Rs 3,000 crore | Rs 7,800 crore | 6.9% |
6. Health & Family Welfare | Rs 5,200 crore | Rs 2,000 crore | Rs 7,200 crore | 6.4% |
7. Agriculture & Allied | Rs 3,500 crore | Rs 1,200 crore | Rs 4,700 crore | 4.2% |
8. Water Supply & Jal Jeevan | Rs 1,500 crore | Rs 3,200 crore | Rs 4,700 crore | 4.2% |
9. Urban Development & Housing | Rs 2,800 crore | Rs 1,800 crore | Rs 4,600 crore | 4.1% |
10. Social Welfare | Rs 3,600 crore | Rs 500 crore | Rs 4,100 crore | 3.7% |
Jammu & Kashmir Budget 2025-26 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 1,12,310 crore for the Union Territory administered by LG
- Revenue receipts at Rs 97,982 crore with own tax of Rs 21,550 crore
- Revenue surplus of Rs 18,279 crore (6.3% of GSDP) โ large central grants exceed revenue spending
- Fiscal deficit at 3.0% of GSDP (Rs 8,596 crore), exactly at FRBM ceiling
- Capital expenditure at Rs 26,909 crore โ 24% of total, massive infrastructure push
- Post-Article 370 abrogation development spending continues to transform the UT
- Tourism sector drives own revenue โ record footfall at Dal Lake, Gulmarg, Pahalgam
- Security expenditure embedded across multiple departments, significant but not separately quantified
- Outstanding debt at Rs 1,38,400 crore, debt-to-GSDP at 48.0% โ among the highest nationally
- Interest payments at Rs 11,518 crore consume 11.8% of revenue receipts
- Central grants of Rs 58,624 crore โ over 59% of total revenue from grants alone
- GSDP at Rs 2,88,422 crore with tourism, agriculture, and horticulture as key sectors
Compare Jammu & Kashmir Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 92,191 crore | Rs 1.12 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 74,401 crore | Rs 97,982 crore |
| Capital Expenditure | โ | โ | โ | Rs 14,943 crore | Rs 26,909 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 4.1% | 3.0% |
| Own Tax Revenue | โ | โ | โ | Rs 14,249 crore | Rs 21,550 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Jammu & Kashmir State Budget 2025-26
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.
Explore More
Compare Jammu & Kashmir with other states
Side-by-side comparison of fiscal metrics across Indian states