Funds to ease budgetary constraints, strengthen infrastructure and enhance public welfare
Aid to stabilise finances, fast-track projects and improve service delivery
Srinagar: The Centre on Thursday approved ₹5,000 crore as Additional Central Assistance (ACA) for Jammu and Kashmir, aimed at strengthening infrastructure, boosting development, and easing fiscal pressures in the Union Territory.
Lieutenant Governor Manoj Sinha expressed gratitude to Prime Minister Narendra Modi, Union Home Minister Amit Shah, and Union Finance Minister Nirmala Sitharaman for the assistance, stating that it would significantly strengthen the UT’s fiscal position.
In a post on X, the Lieutenant Governor said the financial support would help ease budgetary constraints, ensure the timely completion of ongoing projects, and accelerate economic growth by strengthening infrastructure and creating long-term development opportunities.
“This vital support will alleviate budgetary constraints, guarantee on-schedule project delivery and drive J&K’s robust economic growth by bolstering infrastructure and creating lasting opportunities for sustained prosperity,” he said.
Chief Minister Omar Abdullah also thanked the Government of India for extending the financial package, calling it timely and crucial for the Union Territory.
He conveyed his appreciation to the Prime Minister, Union Home Minister, and Finance Minister for their continued support towards the development of Jammu and Kashmir.
“This Additional Central Assistance will go a long way in addressing the fiscal gap and ensuring that our developmental commitments and welfare programmes are implemented effectively for the benefit of our people,” the Chief Minister said in a post on X.
He added that the funds would help accelerate key infrastructure projects, strengthen ongoing development initiatives, and enhance public welfare measures across the region.
Officials said the Chief Minister had earlier sought additional financial assistance from the Centre to bridge the resource shortfall and meet the existing fiscal deficit.
According to officials, the ₹5,000 crore assistance forms part of broader efforts to ensure sustained economic growth and development in Jammu and Kashmir.
Earlier this month, the Centre had also approved ₹330.34 crore in additional financial assistance to address damages caused by floods, landslides and cloudbursts during 2025.
The decision was taken by a high-level committee chaired by Union Home Minister Amit Shah, focusing on immediate restoration and recovery measures.
In addition, the Centre has sanctioned Integrated Solid Waste Management (ISWM) projects across multiple urban clusters in Jammu and Kashmir.
These projects, with a total estimated cost of ₹1,162.40 crore, aim to strengthen scientific waste management systems and improve sanitation infrastructure.
Officials said the initiatives would help address the challenges posed by rapid urbanisation while promoting environmental sustainability across the Union Territory.
They further noted that the combined financial support and infrastructure initiatives are expected to enhance service delivery and improve overall quality of life for residents.
