12,000 Self Help Groups (SHGs) to be formed
80,000 houses to be constructed under PMAY-G
26,000 hectare area to be covered under IWMP
60,000 backyard poultry units in rural areas
New 12 off-beat tourist destinations to be developed
5,000 Kilometres of road length to be black-topped
194 new projects sanctioned under NABARD
Rs 1000 cr new road, bridge projects to be taken up under
SRINAGAR: The Parliament approved the budget of Jammu & Kashmir for 2024-25 with provision of Rs. 1,18,390crore. While LokSabha passed the Appropriation Bill on Tuesday, RajyaSabha approved it on Wednesday. This budget provides for revenue expenditure of Rs. 81,486 crore and capital expenditure of Rs. 36,904 crore.
This outlay surpasses the pre-actuals of the financial year 2023-24 by Rs. 30,889 crore. This jump has been possible thanks to the special financial support agreed by the Central Government. This package was necessitated due to the persistent under recoveries in power sector due to high ATC losses and low tariff in Jammu and Kashmir. The UT government had incurred off-budget borrowings of about Rs. 28,000 crore to clear the power sector dues which had piled up over the last several years.
To address these off-budget borrowings, Finance Department had started exercise since the last one year to bring them on the budget books. A detailed analysis of the UT’s fiscal situation was carried out to address the legacy challenges which include high staff strength, low revenue base, and high debt load. In this direction, the UT government increased its own revenues to over Rs. 20,362 crore in the year 2023-24 through improved GST return compliance, dealer registration, and transparent excise auctions. The UT government’s efforts to undertake metering and improve collection efficiency enhanced the non-tax revenues from Rs 5,148 crore in 2022-23 to Rs 6,500 crore in 2023-24.Administrative departments also intensified efforts and stepped up receipt of CSS funds from Rs 6,400 crore in 2022-23 to Rs 10,300 crore in 2023-24.
During 2023-24, the UT government also stringently enforced borrowing limits and curtailed the culture of overdraft and Hundis. With close monitoring of public debt, the UT government was successful in tapering down the off-Budget borrowings. The government also restrained the non-priority expenditure through austerity measures and biometric verification of beneficiaries. For the first time in 77 years, UT contributed to the contingency funds created by RBI.
Lieutenant Governor, Manoj Sinha, Chief Secretary, AtalDulloo and Principal Secretary Finance, SantoshVaidya led the UT’s efforts in this direction. Crucial meetings were held in June and July 2024 in Ministry of Home Affairs and Ministry of Finance to review the fiscal performance of the UT Government. Union Home Minister and Union Finance Minister personally reviewed the fiscal management of the UT Government.
Considering the challenges faced as also the reforms undertaken by the UT government, the Central Government has approved the special financial support of Rs.17,000 crore for Jammu and Kashmir. As a result of this Rs. 17,000 crore of special package, the fiscal deficit to GDP ratio of Jammu and Kashmir will reduce to 3.0% in the financial year 2024-25. The Union Government will provide for the salary, pension and other costs of Jammu and Kashmir Police for which an allocation of Rs 12,000 crore has been made in the Union budget. In addition, a special grant of Rs 5,000 crore is being provided to Jammu and Kashmir.
As part of the special package, the UT government has also committed to discharge its dues with J&K Bank in timely fashion. In fact, the UT government has repaid about Rs. 4,600 crore to the Bank to clear the past dues. It will reduce the fiscal stress of the UT government in multiple ways. The package will provide additional fiscal space to the Government to work towards fulfilling the developmental needs and aspirations of the people. It will also enable J&K police to undertake upscaled investments in modern weapons, police housing, and infrastructure facilities.
The budget of Jammu and Kashmir for 2024-25makes provisions for the ongoing initiatives for infrastructure development, sustainable agriculture, new industrial estate, PRI level works, employment generation, developing tourism, and social inclusion. The UT’s budget for 2024-25 of Rs. 1,18,390crore provides for the following major outlays –
Major Outlays under Budget 2024-25
Rs. 9,400 crore has been allocated for subsidies and budgetary support for purchasing power from the National Grid and for power purchase agreements with generation companies. Another Rs. 3,983 crore will be used for constructing roads and bridges under various schemes such as PMGSY, CRIF, NABARD loan schemes, and the Bridge scheme. Rs. 1,875 crore is designated for rejuvenating school education infrastructure and services, which includes funding SamagraShikshaAbhiyan (SSA), career counseling services, and establishing modern schools with PM SHRI funding. Strengthening decentralized governance will receive Rs. 1,808 crore, aimed at supporting local area development works for PRIs, ULBs, BDCs, and DDCs.
Rs. 1,714 crore is provisioned for improving tap-water connectivity in rural areas through the JalJeevan Mission. For completing Smart City projects in Srinagar and Jammu, constructing infrastructure projects under the Jhelum Tawi Flood Recovery Project (JTFRP), building sewerage treatment plants in urban areas, and developing new townships for housing, Rs. 1,484 crore is allocated. Rs. 1,430 crore will be used to provide comprehensive social security coverage under various assistance schemes for the elderly, widows, and disabled, along with women empowerment initiatives like LadliBeti and Marriage Assistance schemes.
In the health sector, Rs. 1,317 crore is set aside to strengthen infrastructure and services under the National Health Mission. Rs. 1,104 crore will support the construction of houses for houseless poor families in rural areas with PM AwasYojana – Grameen support. Rs. 1,068 crore will cover salaries, food grains, cash assistance for Kashmiri migrants, and the construction of transit accommodation for Kashmiri migrant employees. To transform agriculture and allied sectors, Rs. 1,021 crore will fund the Holistic Agriculture Development Programme (HADP), which includes a five-year outlay of Rs. 5,013 crore, provisions for the IFAD-funded J&K Comprehensive Investment Plan (JKCIP), and development of cold storage and high-density plantations.
Rs. 923 crore is allocated for developing and upgrading industrial estates, providing GST refund incentives and other incentives as per the Industrial Policy, and promoting trade through JKTPO’s events. For hydroelectric projects at Ratle, Kwar, and Kiru, which are expected to provide a stable revenue source and cheaper power, Rs. 776 crore is earmarked. Rs. 586 crore is designated for universal health insurance coverage for all families in Jammu & Kashmir, and Rs. 500 crore will fund the provision of drugs, machinery, and equipment for health institutions.
The education sector will benefit from Rs. 475 crore allocated for upgrading infrastructure in colleges and universities and rolling out the National Education Policy. Rs. 518 crore is set aside for promoting tourism, developing new destinations and circuits, constructing ropeways, conducting the ShriAmarnathJiYatra, and organizing film festivals and promotional activities. Improving sanitation and waste disposal facilities, including achieving ODF+ status in rural areas, will receive Rs. 445 crore. Rs. 390 crore is allocated for flood management projects related to the river Jhelum.
Self-employment schemes, start-ups, seed capital funds, Mission Youth schemes, and support for self-help groups for livelihood generation will be funded with Rs. 405 crore. Rs. 179 crore will be used for constructing security-related infrastructure, including police housing colonies, bunkers in border areas, and installing CCTVs in police stations. Rs. 150 crore is allocated for installing solar rooftops and solar pumps. Rs. 335 crore will support the creation of sports infrastructure, heritage preservation, festival and theater promotion, and development initiatives for the welfare of tribals, including tribal hostels, milk villages, and nomad shelters.
Capital support for revitalizing Regional Rural Banks (RRBs) and Cooperative Banks will receive Rs. 100 crore. Rs. 500 crore is allocated for MGNREGA works at the Gram Panchayat level. Rs. 401 crore will fund the development of Dal Lake, afforestation, wildlife management, and preservation of protected areas.
Budget Highlights 2024-25
A USD 100 million loan from the International Fund for Agricultural Development (IFAD) will support the Competitiveness Improvement of Agriculture and Allied Sectors project in Jammu and Kashmir (JKCIP). All 29 projects approved under the Holistic Agriculture Development Programme, totalingRs. 5,013 crore over five years, will be implemented. An additional 25,000 MTs of Controlled Atmosphere (CA) storage capacity will be added, and a Chrysanthemum theme park will be developed at Cheshmashahi, Srinagar. 60,000 backyard poultry units will be established in rural areas, and Micro Food Processing Units will be set up to create employment opportunities, particularly in rural areas.
Six grain storage units will be constructed in districts with a deficit in grain storage under the “World’s Largest Grain Storage” scheme. 12,000 additional Self-Help Groups (SHGs) will be formed, and 80,000 houses will be constructed under PradhanMantriAwasYojana – Gramin (PMAY-G). An area of 26,000 hectares will be covered under the Integrated Watershed Management Programme (IWMP), and 12 off-beat tourist destinations (six in each division) will be developed, including Keran as a border tourist village and Tosamaidan and Sitharan as circuits. The revival and restoration of 75 identified heritage/cultural sites and the establishment of eight cultural centers will be undertaken.
Forty-six estates will be developed to fulfill the goal of ‘Made in Jammu and Kashmir’. The Jammu and Kashmir Rural Employment Generation Programme (J&K REGP) aims to set up 1,372 units during 2024-25. A new Start-up Policy will be introduced to create an entrepreneurship ecosystem, and two Cancer Institutes (Jammu and Srinagar) will become fully operational during 2024-25. DNB seats will be enhanced to 400, and ABHA IDs will be created for 1.35 crore people.
Screening for hypertension and diabetes will cover 100% of the 30+ age population. AIIMS, Awantipora, will be made functional by March 2025, and a new Nursing College will be set up at Handwara. Efforts will be made to attain TB-free status in all remaining districts, and 2,176 new Kindergartens will be established. Eighteen thousand four hundred ninety-nine schools will receive sports equipment, 2,584 schools will get ICT labs and smart classrooms, and 43 Robotic Labs and 30 Virtual Reality Labs will be established. Science Centres will be set up in 100 schools, and vocational education will be introduced in 554 new schools.
Twenty national sports events will be organized in 2024-25, and placement drives for 1,000 pass-outs will be held in collaboration with major business and industrial establishments. A new initiative will create an ecosystem for promoting enterprises and self-employment, generating over 5 lakh opportunities, and expanding investments through credit support. New-age courses will be introduced in 10 Industrial Training Institutes, and outreach and counseling activities will be conducted through Model Career Centers (MCCs). All persons with disabilities will be covered under the Nirmaya Health Insurance Scheme. Eleven Shakti Sadan and four SakhiNiwas will be established, and 7,708 women beneficiaries will be targeted under the self-employment scheme with the establishment of 1,502 units.
Eighty schools in tribal areas will be transformed into smart schools. An additional 3,014 MW installed capacity will be added in phases until 2026-27, with a cumulative increase of design energy by 10,714.50 million units per annum. Thirty-eight thousand one hundred fifty KVA Distribution Transformers will be created or augmented, and 14,000 kilometers of dilapidated LT bare conductor will be replaced.
Reliable power supply will be provided to remote areas of Gurez. Five thousand kilometers of road length will be black-topped during 2024-25, and 194 new projects costing Rs. 1,023.42 crore under NABARD will be executed. Rs. 1,000 crore will fund new road and bridge projects under NABARD loan assistance for RIDF Tranche XXX, and 60 ongoing bridges are targeted for completion.
Four lakh twenty-six thousand households will receive Functional Household Tap Connections (FHTCs) to achieve 100% coverage under tap water connections. The ShahpurKandi Dam project is likely to be commissioned, benefiting Jammu and Kashmir with 1,150 cusecs of irrigation water for 32,186 hectares of land in Kathua and Samba. The balance work of the Tawi Barrage will be completed, and 197 minor irrigation schemes will be finished during 2024-25, creating irrigation potential for 38,723 hectares.
All projects under the Smart City mission will be completed, and the Western Foreshore Road along Dal Lake, Srinagar, will be constructed. Two hundred e-buses will be introduced under the PM e-Bus Sewa scheme, and an Inter Model Station (IMS) will be developed at Katra in collaboration with NHAI.
The Master Plan for all 78 Cities/Towns will be finalized, and the sewerage network for Houseboats in Dal-Nigeen Lake, including hamlets inside the lake, will be developed. The Van se Jal, Jal se Jeevan initiative will implement innovative water conservation techniques through watershed management, promote sustainable agricultural practices, and revitalize traditional water bodies, including wetlands. The conservation and rejuvenation of Wular Lake will enhance local livelihoods through ecotourism. The construction of 1,500 flats as transit accommodation
