SRINAGAR, FEB 01: In a significant announcement for Jammu and Kashmir, the Union Finance Minister, Nirmala Sitharaman, unveiled the interim Union Budget for 2024-25 in the Lok Sabha on Thursday. Allocating a substantial sum of Rs 37,277.74 crore for the Union Territory, the budget sets the stage for financial initiatives and developmental projects in the UT.
This allocation reflects the government’s commitment to fostering economic growth and addressing the unique needs of Jammu and Kashmir, as it continues on its path of development.
The interim Union Budget for the fiscal year 2024-25 has earmarked a substantial allocation of Rs 37,277.74 crore for Jammu and Kashmir. Within this allocation, a significant portion of Rs 35,619.30 crore is dedicated to bridging the resource gap in the Union Territory. This financial commitment demonstrates the central government’s focus on addressing the specific needs and development requirements of J&K, aiming to boost economic growth and overall well-being in the region.
Union Finance Minister Nirmala Sitharaman last year allocated Rs 35,581 crore to Jammu and Kashmir in the Union Budget 2023-24, which implies J&K has received more grants this year.
The Andaman and Nicobar Islands, Chandigarh, Dadra and Nagar Haveli, Daman and Diu, Ladakh, Lakshadweep, Puducherry, and Delhi were also included in the distribution of funds.
J&K has received a total of Rs 35,581.44 crore in funding of which Rs 33,923 crore is in the form of central aid in 2023-24.
Last year, the government assistance provided to the union territory consisted of a special fiscal support of Rs 9,486.13 crore and is intended to fill the resource deficit.
The J&K administration will have to spend the money designated for disaster mitigation to cover the costs associated with the long-term repair of infrastructure that was harmed by the 2014 floods as well as the rehabilitation, preservation, and restoration of Srinagar’s Dal and Nageen lakes.
The money would also be used to fill the funding gap for infrastructure projects in J&K as well as equity contributions for the 624 MW Kiru hydroelectric project, the 800 MW Ratle hydroelectric project, and the 540 MW Kwar hydroelectric project. The budget had allocated Rs 5987.14 crore to Andaman and Nicobar Islands as against Rs 5508.05 crore allocated in 2022-23.
