SRINAGAR: Union Finance Minister Nirmala Sitharaman on Sunday proposed an allocation of Rs 43,290.29 crore for the Union Territory of Jammu and Kashmir in the Union Budget for 2026–27, nearly Rs 2,000 crore higher than the allocation for the ongoing financial year.
Budget documents show that the Union Finance Ministry has earmarked Rs 43,290.29 crore as total transfers to Jammu and Kashmir for 2026–27.
For the current financial year, Jammu and Kashmir’s assistance has been revised to Rs 41,340 crore, up from the earlier estimate of Rs 41,000.07 crore, reflecting an increase of Rs 340 crore.
The proposed allocation for 2026–27 includes Rs 42,650 crore as central assistance to meet the Union Territory’s resource gap, Rs 279 crore as grants for the Union Territory Disaster Response Fund, Rs 259 crore as equity support for the Jhelum–Tawi Flood Recovery Project, and Rs 101 crore towards capital expenditure assistance.
