The recently announced Jammu and Kashmir Budget 2025 is yet another exercise in political grandstanding, offering freebies and tall promises while ignoring the fundamental economic rot plaguing the region. Omar Abdullah’s government has painted a rosy picture, yet the budget reveals a deep disconnect from ground realities. Instead of addressing core issues such as unemployment, fiscal sustainability, and industrial stagnation, the budget relies on populist measures designed to appease voters rather than build a self-sufficient economy. Here’s a critical analysis of five key budgetary decisions that expose the administration’s lack of vision.

Electricity Handouts:
A Temporary Fix or Long-Term Burden?

One of the headline announcements is the provision of 200 units of free electricity to Antyodaya Anna Yojana (AAY) families. While this move may sound pro-poor, it fails to acknowledge the deeper structural problems in J&K’s power sector. The region already faces chronic power shortages, with frequent outages and an inefficient electricity distribution network. Instead of investing in improving generation capacity, reducing transmission losses, and tackling electricity theft, the government has chosen the easy route – offering subsidies funded by the Indian taxpayer.

This decision highlights the administration’s failure to devise sustainable economic policies. Rather than making J&K a power-surplus region through hydroelectric projects and private sector investments, the budget locks the region into a cycle of dependency. It is a band-aid solution that does nothing to solve the fundamental crisis in J&K’s power sector. Worse, by doling out free electricity, the government risks burdening the already overstretched exchequer while discouraging any efforts towards responsible power consumption.

AAY Families:
But That Is Only 2.05% of Total Population!

As of the latest available data, Jammu and Kashmir have identified 2.51 lakh families under the Antyodaya Anna Yojana (AAY), a central government scheme aimed at providing highly subsidized food to the poorest households.

This figure represents a significant portion of the region’s population, highlighting the pervasive poverty that persists despite numerous government interventions. The identification criteria for AAY families include landless agricultural laborers, marginal farmers, rural artisans, slum dwellers, and individuals earning their livelihood on a daily basis in the informal sector. Additionally, households headed by widows, terminally ill persons, disabled individuals,........

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