Jammu & Kashmir State Budget 2026-27 Analysis
Budget EstimateTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Jammu & Kashmir FY 2026-27
Jammu & Kashmir State Budget 2026-27 Budget at a Glance
Total Receipts
Rs 90,018 crore
+1.3%
Total Expenditure
Rs 1.14 lakh crore
+2.1%
Fiscal Deficit
4.6%
Rs 14,685 crore
Capital Expenditure
Rs 33,127 crore
+8.5%
Tax Revenue
Rs 20,700 crore
-3.9%
Interest Payments
Rs 12,283 crore
11% of expenditure
Jammu & Kashmir Revenue Receipts 2026-27
Own tax revenue vs non-tax revenue breakdown
Jammu & Kashmir Expenditure Breakdown 2026-27
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Top 10 Departments by Allocation
Fiscal Deficit as % of GSDP โ Jammu & Kashmir 2026-27
The fiscal deficit for Jammu & Kashmir in 2026-27 is 4.6% of GSDP (Rs 14,685 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 12,283 crore consume 10.8% of total expenditure.
Jammu & Kashmir State Budget 2026-27 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 99,082 crore | 100% |
| 1. Revenue Receipts | Rs 90,018 crore | 90.9% |
| a. Own Tax Revenue | Rs 20,700 crore | 20.9% |
| b. Non-Tax Revenue | Rs 11,100 crore | 11.2% |
| B. Total Expenditure | Rs 1.14 lakh crore | 100% |
| 1. Revenue Expenditure | Rs 80,640 crore | 70.9% |
| 2. Capital Expenditure | Rs 33,127 crore | 29.1% |
| of which: Interest Payments | Rs 12,283 crore | 10.8% |
| C. Fiscal Deficit | Rs 14,685 crore | 4.6% of GSDP |
Source: Jammu & Kashmir State Budget Documents via PRS India. All figures in Indian Rupees.
Jammu & Kashmir Department-wise Expenditure 2026-27
Top departments by allocation in Jammu & Kashmir for 2026-27
| Department โ | Revenue โ | Capital โ | Total โ | Share |
|---|---|---|---|---|
1. Education (School & Higher Education) | Rs 13,625.88 crore | Rs 1,513 crore | Rs 15,138.88 crore | 13.3% |
2. Power Development | Rs 10,825.84 crore | Rs 1,718 crore | Rs 12,543.84 crore | 11.0% |
3. Health & Medical Education | Rs 6,788.77 crore | Rs 1,866 crore | Rs 8,654.77 crore | 7.6% |
4. Public Works (R&B) | Rs 1,237.43 crore | Rs 4,061 crore | Rs 5,298.43 crore | 4.7% |
5. Jal Shakti (PHE & Irrigation and Flood Control) | Rs 2,290.77 crore | Rs 2,558 crore | Rs 4,848.77 crore | 4.3% |
6. Rural Development & Panchayati Raj | Rs 1,109.7 crore | Rs 3,456 crore | Rs 4,565.7 crore | 4.0% |
7. Agriculture & Allied Sectors | Rs 2,608.96 crore | Rs 1,878 crore | Rs 4,486.96 crore | 3.9% |
8. Social Welfare | Rs 4,286.72 crore | Rs 170 crore | Rs 4,456.72 crore | 3.9% |
9. Housing & Urban Development | Rs 1,418.84 crore | Rs 2,809 crore | Rs 4,227.84 crore | 3.7% |
10. Disaster Management, Relief, Rehabilitation & Reconstruction | Rs 1,109.98 crore | Rs 351 crore | Rs 1,460.98 crore | 1.3% |
11. Industries & Commerce | Rs 405.16 crore | Rs 461 crore | Rs 866.16 crore | 0.8% |
12. Tourism | Rs 194.23 crore | Rs 472 crore | Rs 666.23 crore | 0.6% |
Jammu & Kashmir Budget 2026-27 Analysis & Highlights
Key Highlights
- Total budget of Rs 1,13,767 crore for 2026-27 (Rs 1,05,958 crore excluding debt repayment of Rs 7,809 crore) โ only 1.3% above the 2025-26 budget estimate of Rs 1,12,310 crore, making this a rare consolidation budget.
- Fiscal deficit targeted at Rs 14,685 crore, or 4.6% of GSDP on PRS's standardised measure; the government's own presentation shows 3.69% by treating Rs 3,000 crore of 50-year interest-free SASCI loans as grants.
- Revenue surplus of Rs 9,378 crore (3% of GSDP), up 17% from Rs 7,991 crore in the 2025-26 revised estimates โ J&K funds part of its capital spending from current revenues.
- GSDP projected at Rs 3,15,822 crore for 2026-27, implying 9.5% nominal growth; real growth of 5.8% in 2025-26 trailed India's 7.4%.
- Central grants of Rs 58,218 crore fund 65% of revenue receipts (Rs 90,018 crore); the UT's own resources contribute just Rs 31,800 crore (35%).
- Capital expenditure of Rs 33,127 crore includes a capital outlay of Rs 25,236 crore, up 4% over the revised estimate; SASCI interest-free central loans contribute Rs 3,000 crore.
- Education is the largest functional allocation at Rs 15,139 crore (School Education Rs 12,988.72 crore plus Higher Education Rs 2,150.16 crore) โ roughly 13% of the budget and about 9% higher year-on-year.
- Power Development commands Rs 12,543.84 crore, the second-largest functional demand โ power purchase alone costs Rs 9,300 crore (12% of total revenue expenditure) against power non-tax revenue of only Rs 7,100 crore.
- Health & Medical Education receives Rs 8,654.77 crore โ more than double the Rs 4,085 crore of 2023-24 โ with AIIMS Awantipora scheduled for commissioning by June 2026.
- Committed expenditure of Rs 52,743 crore absorbs 59% of revenue receipts (salaries Rs 24,683 crore, pension Rs 15,777 crore, interest Rs 12,283 crore), an improvement from 66% in 2024-25.
- Outstanding liabilities stood at 48% of GSDP at end-2024-25, rising to 56.8% once Rs 23,133 crore of off-budget borrowings are counted โ among the highest debt ratios in India.
- Own tax revenue of Rs 20,700 crore leans on State GST of Rs 13,000 crore (+13% over RE); stamps duty is budgeted to fall 42% off an exceptional Rs 1,900 crore collected in 2025-26.
- Flagship announcements include weather-based crop insurance with a Rs 6,595 crore sum insured (apple, saffron, mango, litchi), Rs 4,000 per month for 6,000 orphans, upgrading 1,000 anganwadi centres into Bal Vidyalayas, and free public transport for persons with disabilities.
Compare Jammu & Kashmir Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | Rs 1.11 lakh crore | Rs 1.14 lakh crore |
| Revenue Receipts | โ | โ | โ | Rs 88,830 crore | Rs 90,018 crore |
| Capital Expenditure | โ | โ | โ | Rs 30,537 crore | Rs 33,127 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | 4.9% | 4.6% |
| Own Tax Revenue | โ | โ | โ | Rs 21,550 crore | Rs 20,700 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Jammu & Kashmir State Budget 2026-27
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