Omar Abdullah’s first budget since the abrogation of Article 370 promises jobs, subsidies, and reforms—but critics warn it’s long on populism and short on substance.
By Tauheed Ahmad
After a politically turbulent six-year period, the Jammu and Kashmir government has finally tabled its first full-fledged budget since the abrogation of Article 370 in 2019. Chief Minister Omar Abdullah, who also holds the finance portfolio, delivered his inaugural budget speech, hailing it as a “roadmap for a new and prosperous Jammu and Kashmir.” The budget, he said, aims to drive economic revival, catalyze social upliftment, and lay the foundation for long-term sustainable development in the Union Territory.
In a powerful opening statement that resonated with the hardships endured by the region during years of administrative vacuum, Abdullah recited a poignant couplet: “My entire body is covered with bruises, where should I apply balm?” The verse set the emotional tone of the speech, invoking both empathy and urgency as the government positioned its budget as a turning point.
With a proposed expenditure of ₹1.12 lakh crore, the 2025 budget is being projected as a transformative financial blueprint. It promises sweeping reforms across sectors such as infrastructure, healthcare, education, industry, and social welfare. The administration has labelled it both “progressive” and “people-friendly,” while critics across the aisle argue that it is a rebranding exercise filled with recycled schemes and aimed at upcoming elections.
Some of the budget’s most debated provisions include subsidies on electricity and fuel, expanded welfare schemes, and new reservation policies. These have triggered polarizing responses from both ruling and opposition benches, highlighting the charged political atmosphere surrounding the budget session.
Big Promises
Agriculture, which sustains a significant share of Jammu and Kashmir’s rural population, has received special attention. The government has allocated ₹815 crore to revamp the sector, with goals to generate 2.88 lakh jobs and clock an 11% annual growth rate. Key initiatives include:
• Implementing a two-crop system across all cultivable land
• Expanding horticulture to 3.75 lakh hectares
• Increasing productivity by 15–20% over the next five years
• Upgrading irrigation systems and market linkages
In a strong push towards modernization, capital expenditure in agriculture and allied sectors has risen to ₹2,221.58 crore—a ₹332.72 crore hike from the previous year.
Apple Industry Overlooked Amid Import Fears
Despite its agricultural focus, the budget conspicuously omits any countermeasures against cheap apple imports from the United States, which local farmers fear could decimate domestic markets. Punjab Assembly Speaker Kultar Singh Sandhwan has cautioned that these imports could cause a price collapse, threatening the livelihoods of over seven lakh families across Jammu & Kashmir, Himachal Pradesh, and Uttarakhand.
“The Kashmir Valley Fruit Growers Union has sounded the alarm, urging the Centre to impose protective tariffs and provide immediate economic relief to farmers,” Sandhwan noted in comments reported by the Times of India.
The absence of price protection mechanisms or tariff strategies in the budget has raised serious concerns about the government’s preparedness to defend local industries from global trade pressures.
Tourism Revival
Tourism, another cornerstone of the region’s economy, has been given a boost with a capital allocation of ₹390.20 crore—an increase of ₹121.77 crore from last year. After receiving a record-breaking 2.36 crore tourists in 2024, the administration now aims to sustain the influx by developing new tourism master plans for Gulmarg, Pahalgam, and Sonamarg.
Emerging destinations like Shiv Khori, Doodhpathri, Mansar-Surinsar, and Lolab are being promoted to diversify tourism beyond legacy sites.
“We are aggressively securing multilateral and central funding under the SPREAD initiative to develop world-class alternative tourist destinations,” said Abdullah.
Welfare or Vote Bank Politics
The budget has rolled out a suite of populist welfare initiatives. These include:
• 200 units of free electricity for Antyodaya Anna Yojana (AAY) families
• 10 kg of free monthly ration
• Increase in marriage assistance for eligible girls from ₹50,000 to ₹75,000
• Free bus travel for women on government transport
• Petrol and diesel subsidies—₹1 off per litre of petrol and ₹2 off diesel
Moreover, the government intends to add 200 electric buses to public transport fleets in Srinagar and Jammu and has pledged ₹750 crore under the PM Suryaghar Bijli Yojana to install solar power systems that would effectively eliminate electricity bills for the poorest households over five years.
Stamp duty has also been waived for property transfers among blood relatives—previously charged at 3–7%—in a move hailed as a relief to middle-class families.
But these moves have not gone unchallenged. The People’s Democratic Party (PDP) lambasted the budget as “deceptive” and laden with “hollow promises.”
“This clearly shows the gap between what the National Conference promised during elections and what they are delivering in power,” said a PDP spokesperson.
The PDP particularly objected to the electricity subsidy, arguing it benefits only 95,000 people—approximately 5–7% of the population—while the majority remain excluded. They also questioned the timing of the removal of 1.27 lakh AAY cardholders from the eligibility list, calling it a politically driven move.
Mehbooba Mufti accused the government of “buying public approval” instead of addressing core economic concerns like inflation and unemployment. Engineer Rashid’s Awami Ittehad Party termed the budget a “people-fooling exercise” filled with short-term gimmicks rather than structural solutions.
Hakeem Yaseen of the People’s Democratic Front went further, accusing the administration of sidelining daily wagers and contract workers, describing the document as a “budget of empty promises.”
Employment
CM Abdullah touted a dip in the unemployment rate from 6.7% in 2019–20 to 6.1% in 2023–24. However, critics point out that the rate has risen from 4.4% in 2022–23, suggesting that the progress may be fragile or short-lived.
“There is not even a single mention of employment guarantees. If you cannot provide jobs, at least support start-ups and hand-holding initiatives,” said PDP’s Waheed Parra.
Parra also criticized the government for reneging on its promise to establish a Truth and Reconciliation Commission and failing to reinstate the State Human Rights Commission, which was abolished after the 2019 constitutional changes.
“The least this House can do is to reinstate the Human Rights Commission so that law and order are upheld while also safeguarding human rights,” Parra asserted, linking the issue to recent civilian killings in Kathua.
Unemployment Data Paints a Grim Picture
According to official records, over 3.70 lakh youth are currently registered as unemployed on the government’s job portal—1.13 lakh of them graduates or postgraduates. In response to a written question by BJP MLA Sham Lal Sharma, Deputy CM and Labour Minister Surinder Choudhary confirmed that the government has no plans to provide stipends to unemployed youth.
“There is no such plan for stipend to the unemployed youth as of now,” Choudhary stated in the Assembly on March 18, 2025.
The regional disparity in unemployment is striking: 2.13 lakh from Kashmir and 1.57 lakh from Jammu.
While highlighting schemes like Mumkin (for transport sector jobs), Tejaswini (for women entrepreneurs), and Parvaaz (for competitive exam support), the government also reported organizing 246 job fairs over the past three years, resulting in 4,893 on-the-spot placements and training support for 6,640 individuals.
In a bid to encourage entrepreneurship, the government unveiled the Mission Yuva initiative. Its ambitious target: facilitate the creation of 1.37 lakh new enterprises and generate over 4.25 lakh jobs in five years through credit access, AI-powered skill training, and MSME support.
Sajad Lone terms Reservation System as “Generational Disadvantage”
In a scathing critique of Jammu and Kashmir’s reservation policies, J&K Peoples Conference President Sajad Lone labeled the system a form of “social reordering at play,” calling it a “post-dated cheque for disaster” that threatens the long-term aspirations of Kashmiri-speaking communities.
Speaking during the budget session debates, Lone argued that the current reservation framework has created structural disadvantages for Kashmiri-speaking candidates in competitive examinations—not due to a lack of merit, but because of diminishing entry opportunities.
“With every passing day, in every exam, we see fewer Kashmiri speakers succeeding—not because they are incompetent, but because their entry space is being choked,” Lone asserted on the Assembly floor.
He backed his claim with official data on the Kashmir Administrative Service (KAS) recruitment trends:
• 2023: Only 19% of selected candidates were Kashmiri speakers
• 2022: The figure stood at 25%
• 2021: Even lower, at 17%
Lone particularly criticized the Scheduled Caste (SC) reservation quota of 8%, arguing it disproportionately benefits Jammu region residents, further shrinking the administrative representation of Kashmiri-speaking communities.
“For the past three decades, the discourse from New Delhi has been to deliver a message to Kashmiris—to remind us of our place,” he said, alleging a politically motivated marginalization.
Investment Boom or Youth Displacement
Turning his focus to economic issues, Lone raised alarms over the allocation of industrial land to non-local investors. Citing government records, he said more than 200 companies from outside Jammu and Kashmir had been granted land in industrial estates over the last ten years, with a sharp spike in approvals post the abrogation of Article 370 in August 2019.
According to government data, J&K has received 8,532 investment proposals through the Single Window System, amounting to a cumulative value of ₹1.69 trillion. These proposals, officials claim, are projected to generate over 6 lakh jobs.
However, Lone challenged the credibility of these job figures.
“Most of these employment opportunities are being filled by non-local workers, while the region’s educated, unemployed youth continue to remain on the margins,” he said, expressing skepticism over the inclusivity of these industrialization efforts.
His concerns echoed those of the Federation of Industries Jammu (FOIJ). Lalit Mahajan, FOIJ Chairman, termed the 2025 Budget “anti-existing industry,” stating:
“Instead of offering relief to struggling, long-standing local units, the Budget has made survival even more difficult.”
In contrast, the Kashmir Chamber of Commerce and Industry (KCCI) welcomed several welfare-oriented provisions in the Budget, including:
• 200 free units of electricity for households under the Antyodaya Anna Yojana (AAY)
• Free public transport for women
• ₹75 crore earmarked for MSME-focused strategic investments
Jal Jeevan Mission: Development Milestone or Multi-Crore Scam?
The Jal Jeevan Mission (JJM)—a flagship program aimed at ensuring tap water access to every rural household—was marred by controversy after IAS officer Ashok Kumar Parmar alleged a ₹690 crore tender scam within the department.
The allegations triggered an uproar in the J&K Legislative Assembly, with opposition lawmakers demanding a full-fledged investigation. Congress leader Ghulam Ahmad Mir termed it a “major scam,” while AAP’s Mehraj Malik and NC’s Ali Mohammad Dar accused Jal Shakti officials of misleading the House.
“If this answer is correct, I will resign from my position. It is completely wrong. Action must be taken against those misleading the House,” Dar said, challenging the veracity of official responses.
In his reply, Minister for Jal Shakti Javed Rana pledged a thorough inquiry into the alleged contractor-official nexus and promised action against those responsible for the irregularities.
Despite the controversy, J&K has recorded significant progress under the JJM, achieving 81.06% rural tap water coverage, slightly above the national average of 79.91%, according to data presented in the Lok Sabha. Notably, Srinagar and Ganderbal districts have achieved 100% coverage, while Jammu (66.4%) and Rajouri (65.98%) remain below par.
Budget Grants
The J&K Legislative Assembly, under the leadership of Chief Minister Omar Abdullah, approved grants for multiple departments after three days of intense deliberations. The sanctioned allocations include:
• ₹12,47,727.65 lakh for Power Development Department (PDD)
• ₹62,70,347.94 lakh for Finance
• ₹4,06,130.30 lakh for Housing & Urban Development
• ₹61,280.18 lakh for Tourism
• ₹1,96,369.04 lakh for Disaster Management
• ₹81,073.94 lakh for Revenue
• ₹20,459.31 lakh for Culture, among others
Opening his address with the Kashmiri proverb “Vandi txalli, sheen gallie, bai yee bahaar” (“Winter will pass, the snow will melt, and spring will come again”), Abdullah struck a notably hopeful tone in contrast to earlier critiques.
Responding to opposition jibes
“A smart player adapts to the game. I was bowling pace when the conditions suited it; now I am bowling spin. But I haven’t changed the game—I remain committed to my responsibilities.”
Addressing Core Concerns
On the subject of equal rights post-Article 370, Abdullah asked:
“Are we truly equal to other states? The evidence suggests otherwise. The laws we follow today are not of our own making. The Ranbir Penal Code, named after Maharaja Ranbir Singh, has been replaced—but not by us.”
He advocated for reciprocal employment rights, urging other states to provide opportunities to J&K youth, just as they benefit from working in the region.
He also criticized industrial restrictions in Himachal Pradesh, calling out the double standards that prevent locals from setting up businesses in neighboring states, while non-locals have open access in J&K.
In a candid critique of urban planning challenges, Abdullah said:
“We built footpaths, but people still walk on roads. We made cycle tracks, now taken over by motorbikes. Infrastructure alone won’t work—we need a shift in civic behavior.”
He dismissed fears of demographic change, emphasizing that new residential townships are meant to decongest urban centers, not settle outsiders.
Cultural Preservation, Planning Autonomy, and Governance Reforms
Abdullah underscored the importance of cultural heritage, citing restoration work at 33 historic sites with a budget of ₹65 crore and plans for 73 more projects at a projected cost of ₹170 crore.
“The Mubarak Mandi project must be completed. Our heritage is our identity.”
He pushed for restoring the independent role of the Planning Department, currently merged with Finance, to ensure better execution of developmental schemes.
On accommodation issues, Abdullah acknowledged MLA grievances while promising stricter action against unauthorized occupation of government properties.
He announced the conversion of a government-owned building in Chandigarh into a state guest house for students, patients, and public representatives—at a cost of ₹13 crore.
Announcements
Key announcements included:
• One-time power amnesty for domestic consumers
• Discount scheme on future payments for timely payers
• MLA salary revision through a bipartisan committee
• Constituency Development Fund (CDF) raised from ₹3 crore to ₹4 crore per MLA
• Pilgrimage tourism circuits to enhance connectivity between religious sites
• A renewed push for aviation accountability, criticizing the neglect of a state-owned aircraft abandoned for five years
Omar also emphasized fair distribution of government advertisements, criticizing publications that exist solely to publish government handouts.
Announcing the re-establishment of the Srinagar Press Club, Abdullah said:
“Journalists must elect their own representatives through a transparent process. A free press cannot function without independence.”
With major grants approved and opposition cut motions withdrawn, the 2025 Budget Session concluded with broad focus areas: infrastructure investment, employment generation, industrial transparency, urban development, and cultural preservation.
However, even with a ₹1.12 lakh crore budgetary outlay, serious questions remain—particularly on unemployment, equitable development, and the long-term impact of policy shifts post-Article 370.
Whether this ambitious agenda translates into measurable progress—or becomes another unfulfilled promise in the region’s complex political narrative—remains to be seen in the months ahead.
Leave a Reply