Asif Iqbal Naik
Jammu, Feb 6, 2026:
While the Jammu and Kashmir Budget 2026–27 outlines an ambitious vision for infrastructure-led growth and social welfare, several critical gaps have sparked concern among economists, employees’ unions and civil society groups, who argue that the Budget falls short in addressing some long-standing structural challenges of the Union Territory.
One of the most significant concerns remains Jammu and Kashmir’s heavy dependence on Central assistance. With own tax and non-tax revenues meeting only about a quarter of total expenditure, the UT continues to rely largely on grants and interest-free loans from the Government of India. Financial experts warn that such dependence limits fiscal autonomy and could constrain future development planning if Central support tightens.
Another major disappointment for thousands of families is the absence of a clear timeline or budgetary commitment for the regularisation of daily rated, casual and temporary workers. Although the government has promised a phased roadmap based on committee recommendations, the lack of concrete dates or financial provisioning has left affected workers uncertain about their future.
High committed expenditure also continues to restrict fiscal flexibility. Nearly 60 percent of the Budget is consumed by salaries, pensions and debt servicing, leaving limited space for new development initiatives. Economists caution that unless structural reforms significantly enhance own-revenue generation, this pattern may persist.
Private sector job creation remains another weak area. Despite incentives for MSMEs and startups, large-scale industrial investment is still concentrated in select pockets. Many analysts feel the Budget does not go far enough in creating a strong ecosystem for private enterprises capable of generating sustained employment, particularly for educated youth.
Urban infrastructure has also received limited attention beyond major cities and tourist hubs. Issues such as affordable housing, drainage systems, solid waste management, and public transport in growing towns remain under-addressed, raising concerns about unplanned urbanisation and declining civic services.
In a region increasingly vulnerable to climate-related disasters, the allocation for disaster preparedness has been termed modest. The initial Disaster Risk Mitigation Fund corpus of ₹39 crore is seen as inadequate in light of recent floods and landslides, prompting calls for stronger investments in preventive infrastructure and early-warning systems.
Power sector reforms, though ongoing, have yet to fully resolve high Aggregate Technical and Commercial (AT&C) losses in many areas. While smart metering and infrastructure upgrades are underway, uninterrupted 24×7 electricity remains conditional, continuing to affect households and industrial productivity.
Additionally, middle-income families facing rising living costs have found little direct relief in the Budget. With inflation impacting essentials such as food, fuel and services, critics point out that the Budget focuses largely on long-term structural reforms, offering few immediate measures for the salaried and middle classes.
Overall, while the Budget 2026–27 signals intent towards growth and reform, stakeholders stress that its success will depend on effective implementation, stronger revenue mobilisation, concrete timelines for workforce regularisation, and broader support for private investment and urban development. Without addressing these gaps, they caution, the benefits of planned initiatives may take longer to reach ordinary citizens.
