The 2026 Union Budget keeps public services and projects moving in Jammu and Kashmir, while highlighting a long-standing imbalance between spending and local income.

The Budget for 2026-27 allocates ₹43,290 crore to the region, deciding how easily the government can run schools, hospitals, offices and public projects through the year.

Most of this, about ₹42,650 crore, comes as central assistance to bridge the gap between planned spending and locally raised revenue. A smaller share is earmarked for disaster relief and other special needs.

The scale of this support becomes clear alongside the 2025-26 full Jammu and Kashmir Budget.

Total planned spending reaches ₹1,06,641 crore, while local income from taxes and other sources amounts to only ₹31,905 crore.

The remaining funds come through transfers from Delhi, estimated at ₹58,600 crore, and fresh borrowing, which pushes the fiscal deficit to roughly ₹16,107 crore.

Put simply, every ₹100 the government spends rests on local earnings of about ₹30, with the balance coming from central funds and loans.

Looking closer at income, local tax collections, including GST, excise and stamp duty, bring in around ₹20,900 crore, while non-tax revenue from power bills, fees and services adds nearly ₹11,000 crore.

Together, local income reaches roughly ₹31,900 crore, leaving Delhi as the single largest source of funding.

Spending patterns show how tightly the system runs.

Excluding debt repayment, total expenditure is ₹1,06,641 crore, with ₹79,800 crore going toward........

© Kashmir Observer