Union Finance Minister Nirmala Sitharaman proposed an allocation of ₹43,290.29 crore for the Union Territory of Jammu and Kashmir in the Union Budget 2026–27, marking an increase of nearly ₹2,000 crore compared to the current financial year.
As per the budget estimates, the Centre has proposed ₹43,290.29 crore in total transfers to Jammu and Kashmir for 2026–27.
For the ongoing financial year, J&K’s assistance has been revised to ₹41,340 crore, up from the earlier allocation of ₹41,000.07 crore, reflecting an increase of ₹340 crore.
The proposed allocation for 2026–27 includes:₹42,650 crore as central assistance to bridge the resource gap of the Union Territory, ₹279 crore as grants towards the Union Territory Disaster Response Fund, ₹259 crore as equity support for the Jhelum–Tawi Flood Recovery Project and ₹101 crore as assistance for capital expenditure in Jammu and Kashmir.
The enhanced allocation is aimed at supporting development initiatives, disaster management, and infrastructure recovery in the Union Territory.
