Srinagar: The Union Finance Ministry has proposed an allocation of Rs 41,000.07 Cr to the Union Territory of Jammu & Kashmir for the financial year 2025-26, as part of the fund transfers for Union Territories. The proposed allocation, however, reflects no increase in the central assistance provided to J&K for the next fiscal.
According to the Union Budget documents, of the total Rs 41,000.07 Cr, a significant portion—Rs 40,619.30 Cr—has been earmarked as central assistance for Jammu & Kashmir to help bridge its resource gap. Additionally, Rs 279 Cr has been proposed for grants towards the Union Territory Disaster Response Fund, while Rs 101.77 Cr is allotted for resource gap funding specifically for infrastructure projects. These figures indicate that the financial support for J&K for the upcoming fiscal year will remain the same as it was for the current year. Notably, the allocation for the ongoing fiscal year has been revised to Rs 41,000.07 Cr from the previously projected Rs 42,277.74 Cr. The allocation of Rs 41,000.07 Cr for J&K remains unchanged from previous fiscal years, with no increase in central assistance for the region. The funds are largely intended to support J&K’s administrative needs, with a significant chunk being directed toward filling the resource gap in the Union Territory. The central assistance of Rs 40,619.30 Cr is essential in addressing the ongoing financial challenges faced by Jammu & Kashmir, especially after its reorganization into a Union Territory in 2019. This assistance will help maintain the stability of the region and ensure the continued provision of key public services. In addition to the central assistance, Rs 279 Cr has been allocated towards the Union Territory Disaster Response Fund. This grant is expected to support disaster management efforts and emergency relief activities in Jammu & Kashmir, a region that has faced natural disasters such as floods and landslides in recent years. Furthermore, Rs 101.77 Cr has been proposed for infrastructure development, aimed at addressing the resource gap in critical infrastructure projects across the region. This funding is crucial to the region’s long-term development and will support various sectors, including transportation, healthcare, and education.
Alongside the financial assistance for the Union Territory, the Government of India has allocated Rs 9,325 Cr for the Jammu & Kashmir Police in the Union Budget for 2025-26. The J&K Police, which operates under the administrative control of the Union Ministry of Home Affairs, will receive Rs 8,897.72 Cr for revenue expenditure and Rs 428.01 Cr for capital expenditure. The revenue expenditure allocation covers the day-to-day operational costs of the J&K Police, including salaries, allowances, pensions, and other administrative expenses necessary for maintaining law and order in the region. On the other hand, the capital expenditure allocation will support the modernization of the police force, including investments in new equipment, infrastructure, and technology to strengthen security measures.
The inclusion of J&K Police’s budget in the Union Budget, as opposed to a separate budget managed by the regional government, has raised concerns among political leaders in Jammu & Kashmir. While the Union Government has framed this move as a gesture of financial benevolence, opposition parties argue that it underscores the continued central control over the region’s governance. Since 2019, following the revocation of Article 370 and the passage of the Jammu and Kashmir Reorganisation Act, the Union Government has assumed control over various aspects of governance in the Union Territory, including the police force. Under Section 28 of the Reorganisation Act, the Legislative Assembly of Jammu and Kashmir no longer has the power to legislate on matters related to ‘Public Order’ and ‘Police,’ which remain under the Union Government’s jurisdiction. The shift of power to the Union Government, particularly in relation to law enforcement and policing, has been a key point of contention. The J&K Reorganisation Act, which split the erstwhile state of Jammu and Kashmir into two Union Territories, also altered the legislative framework governing the region’s police force.
This shift in governance is seen by many as an indication that Jammu and Kashmir will continue to be under the direct control of the central government for the foreseeable future. The central government has defended its decision, arguing that it is necessary for ensuring the region’s security and stability, especially in the context of the ongoing challenges related to militancy, civil unrest, and terrorism. However, critics argue that the continued control of key functions, such as the police force and law enforcement, reinforces the perception of Jammu and Kashmir being politically and administratively under the thumb of the Union Government. Despite the lack of an increase in central assistance for the next fiscal, the Union Government continues to provide substantial financial support to Jammu & Kashmir. The allocated funds will help bridge the resource gap, allowing the region to maintain essential services and continue with various development projects. The ongoing support reflects the Union Government’s commitment to the region’s economic development and stability. It remains to be seen, however, how long the region will continue to rely on central assistance, and whether there will be a move toward greater financial self-sufficiency in the future. The Rs 41,000 Cr allocation for Jammu & Kashmir in the 2025-26 Union Budget, coupled with the Rs 9,325 Cr earmarked for the J&K Police, represents a significant financial commitment from the Union Government. However, the lack of an increase in central assistance has raised questions about the region’s future autonomy and its reliance on central control. The budgetary allocations also highlight the ongoing challenges faced by Jammu & Kashmir, both in terms of security and governance.
As Jammu & Kashmir continues to navigate its complex political landscape, the Union Government’s financial support remains vital for ensuring the region’s stability and development. While the future remains uncertain, the allocation of funds for the upcoming fiscal year underscores the central government’s pivotal role in shaping the region’s political and economic future.
