Budget documents show that the Centre has enhanced financial support to the Union Territory as part of its continued assistance to bridge resource gaps and fund key sectors.
For the ongoing financial year, Jammu and Kashmir’s total assistance has been revised to Rs 41,340 crore, up from the earlier estimate of Rs 41,000.07 crore, reflecting an upward revision of Rs 340 crore.
In the 2026–27 Budget, the Centre has proposed Rs 42,650 crore as central assistance to cover the Union Territory’s resource deficit. An additional Rs 279 crore has been earmarked as grants towards the Union Territory Disaster Response Fund.
The allocation also includes Rs 259 crore as equity support for the Jhelum–Tawi Flood Recovery Project and Rs 101 crore to support capital expenditure in Jammu and Kashmir.
The increased allocation comes as the Union Territory continues to depend heavily on central assistance for developmental spending and disaster mitigation efforts.
