JAMMU: Jammu and Kashmir has realised Rs 15,737.80 crore in revenue during the first nine months of the financial year 2024-25, amounting to 77 per cent of the total revenue of Rs 20,333.55 crore collected in 2023-24, according to the Economic Survey 2025 tabled in the legislative assembly. The report highlights a steady rise in tax and non-tax revenues, improvements in financial management, and increased transparency in government transactions.
The contribution of non-tax revenue to the total revenue from Jammu and Kashmir’s own resources has increased from 29 per cent in 2021-22 to 32 per cent in 2024-25. This rise is mainly attributed to an increase in the proportion of power tariffs in non-tax revenue, which has grown from 56 per cent to 67 per cent since 2021-22.
The state’s average monthly revenue growth has fluctuated over the past few years, recording a 5.7 per cent increase in 2022-23, 16.3 per cent in 2023-24, and 3.20 per cent in 2024-25. However, the report notes that revenue collection typically peaks in the last quarter of the financial year, suggesting that the current growth rate could improve by year-end.
Jammu and Kashmir has collected Rs 10,624.09 crore in tax revenue in the first nine months of 2024-25, which accounts for 76 per cent of the Rs 13,903.22 crore realised in 2023-24. The Goods and Services Tax (GST) remains the largest contributor, making up 61 per cent of the tax revenue this year. Meanwhile, non-tax revenue stood at Rs 5,113.71 crore during the same period, representing 80 per cent of the Rs 6,430.33 crore collected in 2023-24.
Among major revenue sources, the highest increase since 2021-22 has been recorded in vehicle taxes, which have surged by 96 per cent, followed by a 67 per cent rise in power revenue, a 33 per cent increase in water user charges, a 36 per cent growth in GST collection, and a 14 per cent rise in excise revenue. However, sales tax revenue has declined by 8 per cent, while the consolidation of remaining tax and non-tax revenues has seen a 30 per cent decrease.
On the expenditure front, Jammu and Kashmir has incurred Rs 49,828 crore in revenue expenditure in the first nine months of 2024-25, which is 75 per cent of the Rs 66,621 crore spent in 2023-24. Salaries and pensions alone account for over 69 per cent of this expenditure. Capital expenditure for the same period stands at Rs 11,538 crore, which is 51 per cent of the Rs 22,531 crore recorded in 2023-24.
The Economic Survey reveals that public debt accounts for 66 per cent of Jammu and Kashmir’s total outstanding debt in 2023-24, with internal debt making up 65.7 per cent and advances from the Government of India constituting 0.57 per cent. Provident fund liabilities represent 21 per cent of total debt. Over the past decade, the share of internal debt in total outstanding debt has risen from 55 per cent to 65.7 per cent, while the proportion of provident fund liabilities has declined from 27 per cent to 21 per cent.
For 2024-25, the approved budget stands at Rs 1,18,390 crore, nearly equal to the Rs 1,18,500 crore allocated in 2023-24. However, it is 9.4 per cent higher than the revised estimate of Rs 1,08,197 crore for 2023-24 and 33 per cent above the actual expenditure of Rs 89,154 crore. Central government grants continue to be the primary funding source for Jammu and Kashmir, accounting for 57 per cent of total resources in 2021-22, 66 per cent in 2022-23, and 56 per cent in 2023-24. Own revenue sources, including tax and non-tax collections, contribute about 22 to 23 per cent of total resources, while the remaining 15 to 20 per cent is met through borrowings and other receipts.
The survey underscores the impact of financial reforms in enhancing transparency and accountability. IT-enabled initiatives such as PaySys, BEAMS, PFMS, and DBT have streamlined government transactions, while the mandatory use of the GeM portal for all procurements has improved efficiency. Comprehensive training has been provided to government officials, suppliers, and other stakeholders to ensure compliance with procurement guidelines.
Fiscal discipline and rigorous monitoring have led to a significant rise in project execution and completion over the past five years. The number of completed projects surged from 9,229 in 2018-19 to 70,773 in 2023-24 (ending December). In the current financial year, 20,999 projects have been completed as of December 2024.
The Economic Survey presents a promising picture of Jammu and Kashmir’s public finances, marked by increased revenue generation, improved fiscal discipline, and enhanced transparency in financial transactions.
