On March 7, 2025, Jammu and Kashmir Chief Minister Omar Abdullah tabled a ₹1.12 lakh crore budget—the first by an elected government in seven years—promising economic growth, jobs, and inclusivity. After years of central oversight following Article 370’s abrogation, this financial blueprint signals a reclaiming of regional agency. Yet, with fiscal constraints, political divides, and high expectations, can it deliver the transformation J&K craves, or will it falter under scrutiny?
A Historic Budget Unveiled
March 7, 2025, marked a pivotal moment in Jammu and Kashmir legislative history as Chief Minister Omar Abdullah, also the Finance Minister, presented the 2025-26 budget in the Legislative Assembly’s ongoing session in Jammu. Valued at ₹1,12,000 crore, it’s the first budget by an elected government since 2018, ending a stretch where J&K’s finances (2020-25) were dictated by Parliament after the 2019 revocation of Article 370 turned the state into a Union Territory. Abdullah framed it as a “historic” roadmap, calling it a “love letter” to all residents—those who voted for his National Conference (NC)-led coalition in the October 2024 elections and those who didn’t.
The budget’s rollout on the fifth day of the session, which began March 3, 2025, follows a meticulous buildup. In February, Abdullah’s administration held unprecedented pre-budget consultations with elected representatives from all 20 districts, alongside stakeholders from tourism, agriculture, industry, and key departments. This participatory approach, a first for J&K, aimed to weave grassroots voices into the fiscal plan. With the NC-Congress alliance commanding 48 of 90 elected seats (plus 5 nominated MLAs), backed by Independents and AAP, Abdullah holds a strong mandate. Yet, the BJP’s 29 MLAs, leading the opposition, ensure a contentious debate ahead as the assembly races to approve the budget by March 31, 2025, for the fiscal year starting April 1.
This moment carries weight beyond numbers. It’s a test of the NC’s ability to govern after reclaiming power in 2024, following a six-year gap since the last elected assembly dissolved in 2018. The budget’s stakes are high, bridging economic needs with political promises in a region still grappling with its Union Territory status.
Key Allocations: Jobs, Tourism, and Beyond
At ₹1.12 lakh crore, the budget is slightly leaner than 2024-25’s ₹1,18,728 crore, reflecting J&K’s deficit reality. Abdullah stressed self-reliance as a long-term goal, though immediate dependence on central funds persists—he’s requested a ₹20,000 crore special package from the Union Government. The allocations target key sectors to address voter priorities and spur growth.
Agriculture, a backbone for rural J&K, gets ₹815 crore to generate 2.88 lakh jobs. The focus is on shifting to a two-crop pattern and expanding horticulture, critical for areas like Shopian, known for apple production. Tourism, another economic pillar, sees ambitious plans: new circuits, improved amenities, and upgrades to cricket stadiums in Jammu and Srinagar to host IPL matches—a move to boost visibility and revenue. Healthcare investments aim to modernize facilities, though specifics remain broad, while local industries receive support to foster entrepreneurship.
NC’s electoral pledges feature prominently. The promise of 200 units of free electricity for eligible households headlines welfare measures, but Abdullah tempered expectations, noting full implementation will roll out over the government’s five-year term. Infrastructure, a perennial need, includes projects like the Keran-Jumgund Tunnel, with its Detailed Project Report in progress to ensure all-weather connectivity in remote border areas. These allocations reflect a balancing act—delivering on campaign rhetoric while navigating fiscal limits.
The budget also nods to broader aspirations. Discussions in prior sessions (e.g., November 2024) on power project control and the Indus Water Treaty hint at efforts to reclaim resource autonomy, though funding details for such initiatives are yet to crystallize. For a region where unemployment and underdevelopment fueled discontent, these measures aim to signal progress—but their scale and pace remain under scrutiny.
Shabir Ahmad Kullay; Political Reactions
The NC-Congress coalition hailed the budget as a triumph of inclusivity. Abdullah highlighted its district-level input as a democratic milestone, while coalition partners like Congress, offering external support, see it as a step toward their statehood agenda—though their refusal to join the cabinet reflects tensions. The mood in the assembly, however, is far from unanimous.
BJP Leader of Opposition Sunil Sharma fired the first salvo, slamming the budget for neglecting daily wagers, SC/ST/OBC communities, and contractors awaiting dues. “It’s a rehash of central achievements, not NC’s vision,” he charged, pointing to the IPL pitch as a Union-backed idea. On X, public sentiment splits: some applaud job creation plans, others decry delays in free electricity or call it “too little, too late” for a region battered by decades of instability.
Independent MLA Shabir Ahmad Kullay of Shopian, elected in 2024, brought a grassroots lens to the debate. A vocal opposition figure, Kullay has spoken in both the November 2024 session and the current one. In November, he backed statehood restoration and accountability; during the budget session, he sharpened his critique. On March 6, 2025, he reportedly questioned the budget’s delivery timeline, saying, “We’re here to ensure promises turn into action, not just words. Jobs and autonomy can’t wait.” Representing Shopian—a horticulture hub—he likely pressed for tangible gains in agriculture and local employment, aligning with his campaign focus on people’s welfare. While exact transcripts from March 7 aren’t widely available, his consistent stance suggests he challenged the government to prioritize execution over optics.
Kullay’s voice adds heft to the opposition chorus. Alongside BJP critiques, it underscores a broader demand: prove the budget’s worth beyond its presentation. The assembly’s dynamics—90 elected MLAs plus 5 nominated by the Lieutenant Governor—amplify this tension, with the NC needing to rally its coalition and allies like AAP and Independents to push the budget through by month’s end.
Challenges and the Road Ahead
J&K’s fiscal landscape is a minefield. As a Union Territory, it relies heavily on central grants, a reality Abdullah acknowledged with candor: “We run a deficit budget; tough decisions are ahead for long-term gains.” The ₹1.12 lakh crore allocation, while substantial, must stretch across a region of 12.5 million people with diverse needs—urban centers like Srinagar, rural pockets like Shopian, and border zones like Keran. The drop from last year’s ₹1,18,728 crore signals tighter belts, raising doubts about funding grand promises.
Political challenges loom equally large. Statehood restoration and Article 370’s repeal—hot topics since the session’s start on March 3—frame the budget’s reception. The NC’s cautious approach (e.g., phased electricity rollout) risks alienating voters expecting swift relief, while opposition barbs from Sharma and Kullay could sway public perception if delivery lags. The ₹20,000 crore central package request, if unmet, might derail key projects, from tunnels to tourism.
Execution is the wildcard. Past budgets under central rule promised development—roads, power, jobs—but implementation often faltered amid bureaucratic red tape and security distractions. Abdullah’s team must navigate this legacy, proving an elected government can outperform its predecessors. The assembly session, expected to span three weeks, offers a crucible: pass the budget by March 31, or face a fiscal limbo come April 1.
Beyond numbers, the budget carries symbolic heft. It’s a chance to redefine J&K’s trajectory after years of turmoil— insurgency, political upheaval, and economic stagnation. Kullay’s call for action echoes a wider sentiment: J&K needs results, not just plans. Success could cement the NC’s resurgence; failure might embolden critics claiming it’s all promise, no punch.
For now, Abdullah’s ₹1.12 lakh crore vision is a bold step—a blueprint for a new dawn. Whether it lights the way or stumbles on a tough road hinges on what unfolds in the assembly and beyond. As debates rage and deadlines near, J&K watches closely, hoping this budget marks a turning point, not another missed chance.