Srinagar: Chief Minister Omar Abdullah highlighted a key fiscal challenge while presenting the JK Budget, stating that the Union Territory’s own tax and non-tax revenues cover only 30% of its revenue receipts and 25% of its total budgetary needs.
The statement reflects the economic challenges J&K faces in achieving fiscal self-sufficiency. While the UT’s economy has been growing, its reliance on Central grants remains high. Omar emphasised the need for revenue reforms to strengthen JK’s financial independence.
The budget speech also included several key allocations, such as Rs 86 crore for a maternity hospital in Anantnag, Rs 10 crore for new helipads, and Rs 110 crore for district hospital CT scans. The economy has grown from Rs 1,64,103 crore in 2019-20 to Rs 2,45,022 crore in 2023-24, with tax and non-tax revenues showing an upward trend. However, public debt has risen to 52% of GSDP due to power sector liabilities.
