Srinagar/Jammu, Feb 1 (PTI) The Union Budget 2026-27 evoked mixed reactions from politicians and industry leaders in Jammu and Kashmir, with some indicating that it failed to meet the UT’s expectations while some hailed it as a pro-poor, reform-oriented and future-ready budget.
Jammu and Kashmir Minister Satish Sharma criticised the quantum of funds allocated to the Union Territory, saying that it was “peanuts” and insufficient to meet its developmental requirements.
“This is peanuts. If the Centre truly wants to help the people of Jammu and Kashmir, it should grant a package of at least Rs 50,000 crore,” Sharma told reporters in Jammu.
He said the region, which had dealt with a major setback in terms of development after the Pahalgam terror attack, was not receiving its due share of funds and “today, you are giving us Rs 1,400 crore”.
All India Congress Committee General Secretary Ghulam Ahmad Mir also said there was nothing substantial for Jammu and Kashmir in the budget.
“If you see, unemployment is rising in Jammu and Kashmir every passing day. This budget has nothing in terms of a package or major power project that could generate employment here,” Mir, an MLA from Dooru in Anantnag district, told PTI.
He said the Narendra Modi-led BJP government at the Centre has not taken any major developmental initiative in Jammu and Kashmir ever since it came to power in 2014.
“The rail project, road projects, the tunnels, the AIIMS and IIM were all started under the UPA (United Progressive Alliance) tenure. This government has done nothing substantial in the past 10 years,” he said.
Meanwhile, Lieutenant Governor Manoj Sinha hailed it as pragmatic budget, which he said will chart the path to the 5 trillion dollar economy milestone within a few years, and adopt a comprehensive fiscal strategy that will balance growth ambition with social welfare.
He thanked Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the development of ecologically sustainable mountain trails in Jammu and Kashmir. This will generate fresh employment opportunities and invigorate the tourism industry with renewed vigour, Sinha added.
BJP leader Altaf Thakur also welcomed the budget, describing it as a pro-poor, reform-driven and forward-looking document that balances economic growth and social welfare while simplifying governance and taxation.
“The introduction of the new Income Tax Act from April 1, 2026 marks a historic step towards a simpler, transparent and taxpayer-friendly regime,” Thakur said in a statement.
The BJP leader welcomed the proposal to extend the time for revising income tax returns, the staggered filing timelines, the estimated Rs 36.5 lakh crore non-debt receipts and Rs 28.7 lakh crore net tax receipts, rationalisation measures such as simplifying TDS norms for property purchases from NRIs, inclusive initiatives like Self-Help Entrepreneur (SHE) Marts to promote women entrepreneurship.
Thakur also welcomed the focus on regional development, including the East Coast Development Corridor, tourism hubs in Purvodaya states, development of Buddhist circuits in the Northeast, and continued support to states through 41 per cent devolution and Rs 1.4 lakh crore Finance Commission grants.
He said Jammu and Kashmir would benefit immensely from the budget’s emphasis on infrastructure, job creation, tourism and entrepreneurship. This budget carries forward the spirit of Antyodaya and the vision of Viksit Bharat, ensuring that growth reaches the poorest while opening new opportunities for youth and small entrepreneurs,” the BJP leader added.
The industry leaders, meanwhile, maintained that while positive steps have been taken at the national level, there remains a noticeable absence of a targeted and special economic framework for Jammu and Kashmir.
Rahul Sahai, Chairman of the Indian Chamber of Commerce and Industries in Jammu and Kashmir, said the Union budget is progressive and sustainable for the country as a whole but it failed to meet the UT’s expectations as a conflict-affected region.
Sahai said the budget reflects a strong focus on sustainable infrastructure development and appears balanced from a national perspective.
“Overall, it is a progressive budget for the country. But if you take a region-specific view, it is not as per our expectations in terms of industries and also keeping in view that Jammu and Kashmir is a conflict zone,” he told reporters here.
Sahai said the increased public capital expenditure and infrastructure push remain among the biggest positives of the budget.
He welcomed the enhanced allocation for infrastructure, particularly the focus on Dedicated Freight Corridors, National Waterways, Urban Economic Regions, and development of Tier-2 and Tier-3 cities, terming it a positive step towards economic expansion.
Highlighting another key announcement, he said the Rs 10,000 crore SME Growth Fund and strengthening of the Trade Receivables Discounting System indicate a serious effort by the government to improve funding access for MSMEs.
He also appreciated the government’s emphasis on domestic manufacturing and strategic sectors, including revival of 200 legacy industrial clusters, electronic components manufacturing, textile chemicals, and advanced manufacturing, stating that the commitment in these areas is clearly visible.
However, Sahai said that the industry in Jammu and Kashmir had expected greater financial support, particularly for the MSME sector.
“Our biggest expectations were with regard to Jammu and Kashmir, that it should receive a little more funding, especially to strengthen the MSME sector,” he said.
He added that there appears to be no specific provision in the budget for existing MSMEs and industries in Jammu, though clarity will emerge once the detailed provisions are examined.
“In addition, there is no visible region-specific credit support or interest subvention framework,” Sahai said.
He stressed the need for customised policy instruments for border and post-conflict zones like Jammu and Kashmir, saying local industries often bear the first impact of security-related incidents.
“Everyone is a witness to the unique challenges Jammu and Kashmir faces. In such circumstances, the first impact is felt by local industry and businesses. This calls for a different approach, one that deals with industry and businesses in Jammu and Kashmir differently from other states,” he said. PTI MIJ AB RUK RUK
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