As former U.S. President Ronald Reagan once quipped, “A government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” Nowhere is this more evident than in Jammu and Kashmir’s budget-making exercise, where the primary skill seems to be toggling someone else’s money rather than generating any of its own.

Omar Abdullah, however, seems far more excited about presenting the budget than he is about actually developing a roadmap for J&K’s prosperous future. Watching him revel in the grand theatrics of budget day, one might think he’s unveiling a revolutionary economic doctrine. In reality, it’s just another exercise in playing treasurer to someone else’s hard-earned money while failing to create a system where J&K can stand on its own feet.

As he prepares to present the Jammu and Kashmir budget on March 7, a fundamental reality remains unchanged – J&K does not generate its own wealth; it merely spends what it receives. Year after year, the budget has been an exercise in toggling someone else’s money, largely comprised of central grants, loans, and devolution funds. This institutionalized economic dependency has crippled the region’s ability to achieve self-reliance, making it a perpetual economic liability rather than a self-sustaining entity.

J&K’s Dependency on Central Funds

Jammu and Kashmir is among the highest recipients of financial aid from the central government. According to the Union Finance Ministry, J&K receives more than ₹35,000 crore annually in central grants, covering nearly 75% of its total budgetary expenditures. In contrast, its own revenue generation remains abysmally low. The state’s tax revenue stands at just ₹15,000 crore, barely sufficient to cover administrative costs. For every rupee it spends, a significant portion comes from Delhi, not from internal economic activity.

A look at recent budget allocations proves this point. The 2023-24 J&K Budget stood at ₹1.18 lakh crore, with central grants contributing ₹35,000 crore and own revenue making up just ₹15,000 crore. The deficit, exceeding ₹25,000 crore, was managed through borrowing. Despite repeated calls for economic revival, successive........

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