Union Budget 2026: Jammu and Kashmir fund allocation ‘marginally’ up; Ladakh sees around 27% increase

Jammu and Kashmir was allocated ₹43,290.29 crore, an increase of nearly ₹2,000 crore this financial year compared to ₹41,000 crore allocated in 2025-26. Ladakh’s allocation stood at ₹7,377.43 crore, which included ₹5,029 crore in revenue and ₹2,347.73 crore in capital. It is around 27% increase compared to 2025-2026 when Ladakh got ₹4,692.15 crore.

“The modest increase of ₹2,000 crore in Central allocations falls far short of addressing the region’s long-standing developmental gap or providing the stimulus required for revival of existing industrial units,” said Shakeel Qalander, member of the Federation of Chambers of Industries Kashmir (FCIK).

“Despite its significant potential in MSMEs, textiles, handicrafts, agro industries and exports, Jammu and Kashmir has faced persistent structural challenges, compounded by prolonged spells of disturbance and, more recently, the 2019 reorganisation and the COVID-19 pandemic,” the FCIK said.

“From a region-specific point of view, it is not as per our expectations in terms of industries, especially considering that Jammu and Kashmir is a conflict zone,” Rahul Sahai, chairman of the Indian Chamber of Commerce and Industries-J&K, said. “Overall, it is progressive and sustainable for the country,” he added.

Ruling National Conference leader and Minister Satish Sharma termed the hike in the Central allocation “peanuts”. “In the wake of the Pahalgam attack and its impact on the economy, we were expecting a ₹5,000 crore Central package,” Mr. Sharma said.

‘Continuation of dependency’

Peoples Democratic Party (PDP) leader Firdous Tak said the budget allocation stood in clear contradiction to what Chief Minister Omar Abdullah had been telling the people. “Out of the total ₹43,290.29 crore, nearly ₹42,650 crore is Central assistance meant largely to cover the union territory’s revenue deficit. This is not a growth-oriented package but a continuation of dependency, where Jammu and Kashmir is kept afloat through grants instead of being empowered through fiscal autonomy and productive investment,” Mr. Tak said.

Lieutenant Governor Manoj Sinha and BJP leaders welcomed the budget and allocation for Jammu and Kashmir. “The budget is pragmatic and prioritises economic acceleration, creates future-ready infrastructure, sustains growth momentum and charts the path to $5 trillion economy milestone,” Mr. Sinha said.

On development of ecologically sustainable mountain trails in Jammu and Kashmir, he said the initiative would generate fresh employment opportunities and invigorate tourism industry with renewed vigour.