Union Budget 2025: J&K Set to Receive ₹41,000 Crore in Central Assistance for Upcoming Fiscal Year

J&K Police Receives ₹9325 Crore

JAMMU, Feb 1: The Union Government has proposed a budget allocation of ₹41,000.07 crore for the Jammu and Kashmir Union Territory for the fiscal year 2025-26. As part of the fund transfers to Union Territories, this amount was outlined by the Union Finance Ministry in the Union Budget.
Budget figures indicate that there has been no increase in central assistance for Jammu and Kashmir for the upcoming fiscal year. Out of the ₹41,000.07 crore allotted, ₹40,619.30 crore will serve as central assistance to address the resource gap in the Union Territory.
The budget documents detail proposals for ₹279 crore in grants towards the Union Territory Disaster Response Fund, and ₹101.77 crore aimed at funding infrastructure project deficits.
For the current fiscal year, financial assistance for Jammu and Kashmir has been revised to ₹41,000.07 crore, down from ₹42,277.74 crore.
Additionally, the Government of India has allocated ₹9325 crore for the Jammu and Kashmir Police, which operates under the administrative control of the Union Home Ministry for the 2025-26 budget.
According to the Ministry of Home Affairs’ demands for grants, ₹9325.73 crore are designated for the J&K Police. This includes ₹8897.72 crore for revenue expenditure and ₹428.01 crore for capital expenditure.
These budgetary allocations are intended to cover the administrative costs associated with the Jammu and Kashmir Police, which is tasked with maintaining law and order and managing traffic in the region.
Since the fiscal year 2024-25, the budget for the Jammu and Kashmir Police has been included in the Union Budget. While the Union government has characterized this as a gesture of financial support, opposition parties argue that it signifies continued Union control over Jammu and Kashmir.
In 2019, the Union Government took legislative control over the J&K Police through the Jammu and Kashmir Reorganisation Act, which states in Section 28 that “Subject to the provisions of this Act, the Legislative Assembly may enact laws for the entire or any part of the Union Territory of Jammu and Kashmir regarding matters enumerated in the State List, except for ‘Public Order’ and ‘Police,’ or any relevant matters in the Concurrent List as applicable to the Union Territories.” (KNO)