J&K Budget Allocation 2026-27: Union Government Proposes ₹43,290 Crore for Union Territory

SRINAGAR, February 01, 2026 — The Union Government has proposed a significant financial boost for Jammu and Kashmir in the Union Budget 2026-27, allocating ₹43,290.29 crore to the Union Territory. This represents a substantial increase of nearly ₹2,000 crore over the previous fiscal year’s allocation, reinforcing the Centre’s commitment to bridging the region’s resource gap and fueling developmental projects.

The updated figures show that the assistance for the current financial year was also revised upward to ₹41,340 crore, signaling a consistent trend of enhanced financial support to meet the UT’s evolving expenditure requirements ahead of its own upcoming fiscal budget.A major portion of this outlay, approximately ₹42,650 crore, is designated as central assistance specifically to cover the Union Territory’s resource deficit.

The financial blueprint also prioritizes disaster management and infrastructure recovery, earmarking ₹279 crore for the Union Territory Disaster Response Fund and ₹259 crore as equity support for the Jhelum-Tawi Flood Recovery Project.

Furthermore, ₹101 crore has been specifically set aside to bolster capital expenditure, ensuring that critical infrastructure and long-term assets receive the necessary funding to drive economic stability and growth across Jammu and Kashmir.