Centre allocates Rs 43,290.29 Cr grant-in-aid for J&K

Srinagar, Feb 1: The Union Government on Sunday allocated Rs 43,290.29 crore as grant-in-aid to Jammu and Kashmir in the Union Budget for 2026-27.

The Budget was presented by Finance Minister Nirmala Sitharaman in the Parliament.

The allocation, made under Demand No 58 of the Ministry of Home Affairs, reflects an increase over the revised estimates of the current financial year.

According to the Budget documents tabled in Parliament, the entire amount of Rs 43,290.29 crore has been provided under the revenue head as grants-in-aid to the J&K government.

The allocation is higher than the revised estimate of Rs 41,340.22 crore for 2025-26 and the budget estimate of Rs 41,000.07 crore for the same year, though it remains lower than the actual release of Rs 46,000.06 crore in 2024-25.

A detailed break-up of the 2026-27 allocation shows that the largest share – Rs 42,650.27 crore – has been earmarked as central assistance to Union Territories.

This component forms the backbone of the Centreís financial support to Jammu and Kashmir and is aimed at helping the UT meet its day-to-day administrative expenditure as well as development-related commitments.

In addition, Rs 279 crore has been allocated as grants towards contribution to the Union Territory Disaster Response Fund (UTDRF).

This provision is meant to enable the J&K administration to provide immediate relief in the event of notified natural disasters such as floods, earthquakes, droughts, and other calamities.

The Budget has also earmarked Rs 259.25 crore for the Jhelum-Tawi Flood Recovery Project (JTFRP), which is aimed at supporting flood recovery, strengthening resilience and enhancing the capacity of communities to respond effectively to disaster situations.

The project assumes particular significance in the context of J&Kís vulnerability to floods.

Further, an amount of Rs 101.77 crore has been provided as support for the capital expenditure of J&K. This assistance is intended to supplement investments in infrastructure creation and asset development across sectors.

Budget documents indicate that no fresh allocation has been made in 2026-27 for equity contribution towards hydroelectric power projects in J&K, which had figured under this head in earlier years.

Officials said the grants-in-aid continue to be a critical source of funding for J&K, which remains heavily dependent on central transfers to bridge its resource gap, sustain public services, and carry forward development works.

The increase over the revised estimates of the current year has been noted, though stakeholders are expected to closely assess whether the allocation is adequate to meet rising expenditure needs and long-standing developmental challenges in the region.

The Union Budget 2026-27 has also provided for Ladakh under Demand No 55 of the Ministry of Home Affairs.

Ladakh has been allocated a total of Rs 4869.31 crore for the coming financial year, comprising Rs 2542.26 crore under the revenue head and Rs 2327.05 crore under capital expenditure.

For Ladakh, establishment expenditure of the Centre in 2026-27 has been pegged at Rs 1,984.20 crore, including Rs 52.56 crore for the Secretariat and Rs 1931.64 crore for other establishment expenses. Under central sector schemes, allocations have been made across sectors such as power, medical and public health, roads and bridges, civil aviation, tourism, urban development, education, agriculture, and rural development.

A substantial portion of Ladakhís capital support continues to flow through the Tribal Area Component, which has been allocated Rs 2369.09 crore for 2026-27, reflecting the regionís demographic and developmental priorities.