Jammu & Kashmir’s first budget in 6 years: A turning point or another missed opportunity?

Call for a special INR 200 billion package to revive key sectors

Business

Politics

January 31, 2025

/ By / New Delhi

Jammu & Kashmir’s first budget in 6 years: A turning point or another missed opportunity?

With the budget set to be passed in the coming days, there is widespread anticipation and hope that it will address the pressing issues faced by the region

After six years, Jammu & Kashmir is set to present its first state budget, raising hopes for economic revival. With pressing challenges in education, healthcare, and employment, stakeholders urge a strategic approach to ensure sustainable development and long-term stability in the region.

5/5 - (1 vote)

After years of financial and political uncertainty, Jammu & Kashmir is set to present its first state budget in six years, a crucial moment for the region’s development. With pressing issues in education, healthcare, and employment, experts call for strategic investments, fiscal discipline, and self-reliance to drive long-term economic stability. As hopes run high, stakeholders await a budget that moves beyond short-term solutions and lays the foundation for sustainable growth and prosperity.

With the budget set to be passed in the coming days, there is widespread anticipation and hope that it will address the pressing issues faced by the region, focussing on key areas such as healthcare, education, infrastructure, and overall economic growth.

A History of financial uncertainty

Jammu & Kashmir’s financial landscape has been anything but stable since the coalition government fell in 2018. The last state budget, presented by then-Finance Minister Dr. Haseeb Drabu in January 2018, amounted to INR 803 billion. However, after the dissolution of the Assembly in June 2018, the region fell under the control of the Union Government, which began presenting the J&K budget through Parliament.

For the next five years, budgets continued to be passed by the Union Government, with the most recent one for 2024-25 standing at INR 1187 billion, slightly higher than the INR 1185 billion allocated in 2023-24. But despite these figures, experts argue that much of the allocated funds have been diverted towards administrative costs and security measures, leaving crucial sectors such as healthcare and education underfunded.

Jammu & Kashmir’s challenges: A region left behind

The education sector in Jammu & Kashmir continues to suffer from severe neglect, with budgetary allocations failing to address its deep-rooted challenges. Despite having more teachers than students in government schools, the system remains in a state of crisis, plagued by poor infrastructure, lack of modern educational resources, and an alarming dropout rate. The overall literacy rate in the region stands at 68.74 pc, with a stark gender gap male literacy at 78.26 pc and female literacy at a dismal 58.01 pc.

Instead of prioritising meaningful reforms, budgetary allocations have largely been absorbed by administrative expenses, leaving rural and marginalised students without proper learning facilities say critics. While urban centres have seen some infrastructural development, remote and conflict-affected areas continue to struggle with outdated curricula, dilapidated school buildings, and an absence of digital learning opportunities.

The situation is even worse at the secondary level, where Jammu & Kashmir records a dropout rate of 13.42 pc, one of the highest in North India. The crisis is particularly severe in Ladakh, where the dropout rate soars to an alarming 19.84 pc. These figures paint a grim picture of a system that is failing its students, forcing many to abandon their education due to inadequate support, lack of transport, and poor learning environments.

Javeed Bhat

Javeed Bhat

With only 1.6 pc of students dropping out at the primary level, the sharp rise at the secondary stage highlights the government’s failure to provide quality education beyond the basics. Instead of addressing these critical gaps, budgetary allocations have remained stagnant, with no major policy interventions to curb dropout rates or improve school facilities. Without urgent action, the education crisis in Jammu & Kashmir is set to deepen, further widening the region’s social and economic divide.

Javeed Bhat, Presdent Industries and social activist speaks candidly about the dire state of education in Jammu and Kashmir. He emphasises the growing gap between government claims of progress and the harsh reality faced by students and teachers on the ground.

“The education sector in Kashmir is in a state of crisis. Nearly 60 pc of government schools are on the brink of closure, yet there is little attention being paid to the issue. The dropout rate is rising, as many schools lack even the most basic facilities, there are hardly enough classrooms for students, and children from different grades are being taught in the same room. Our schools don’t have proper washrooms, clean drinking water, or even enough books for students. Instead, we have more teachers than students in many government schools. I truly don’t understand where the funds are going, because when we look at the ground reality, we see nothing being done to improve the situation,” Bhat tells Media India Group.

Bhat also raised serious concerns about the disparity between the government’s claims and the ground reality of education in Jammu and Kashmir. He expressed frustration over the conditions of government schools, highlighting the struggles faced by the weaker sections of society.

“If the condition of government schools were truly as good as the government claims, why don’t the officials send their own children there? The reality is, the elite are not affected by these shortcomings they can afford private education. But the weaker sections of society, who can’t afford to send their children to private schools, are left with no choice but to endure substandard conditions in government schools. Our government schools are simply not in a condition where any parent would want to send their child, and that speaks volumes about the state of education in our region,” he adds.

Jammu & Kashmir stands at the top of the country’s unemployment charts, with an alarming 32 pc unemployment rate among jobseekers aged 15-29 in urban areas, says a report by the latest quarterly Periodic Labour Force Survey (PLFS). This positions J&K in a worse situation than states like Odisha.

Rohit Ul Bashir

Rohit Ul Bashir

The survey, covering the July-September quarter, revealed that the overall unemployment rate for youth aged 15-29 in urban areas was 15.9 pc down from 16.8 pc in the April-June period. The unemployment rate across all age groups in urban areas fell to 6.4 pc in the July-September quarter from 6.6 pc in the previous quarter. Among females, the unemployment rate in the July-September quarter was highest in Jammu & Kashmir at 53.6 pc the highest in the nation.

Rohit Ul Bashir, Assistant Professor of Economics, emphasises the urgent need for targetted employment generation in Jammu and Kashmir.

“The government must focus on creating 300,000 jobs, particularly in key sectors like agriculture, horticulture, tourism, and industry. This will not only help alleviate the unemployment crisis but also contribute to the region’s economic development. Additionally, enhancing support for grant-in-aid colleges, such as Islamia College of Science and Technology and Gandhi College, is essential for improving educational outcomes and preparing the youth for these opportunities. Only through a comprehensive approach that includes both employment and education can we ensure sustainable growth for the region,” Bashir tells Media India Group.

Healthcare

Healthcare in Jammu & Kashmir faces similar challenges. Jammu & Kashmir’s healthcare system has been grappling with severe challenges for years, despite repeated promises from the PDP-BJP Coalition Government to improve services.

According to a report by Excelsior, the region continues to face a critical shortage of doctors and para-medical staff, with over 2,478 doctor vacancies and 3,750 para-medical staff vacancies. The doctor-patient ratio in Jammu & Kashmir stands at 1:1880, far exceeding the World Health Organisation’s recommended ratio of 1:1000. The shortage of medical personnel is particularly severe in district headquarters and remote areas, where health institutions are struggling to provide even basic care.

Data from Excelsior further highlights the magnitude of the crisis in rural districts. In Doda district, for example, there are only 72 doctors against a sanctioned strength of 211, and in Kishtwar, just 37 doctors serve a population that should have 98 doctors. This lack of healthcare professionals has led to inadequate healthcare delivery, with many areas lacking the essential services required to meet the needs of the population. Furthermore, the situation in government medical colleges is equally dire, with significant vacancies among faculty members. At the Government Medical College in Jammu, for instance, 163 faculty positions remain unfilled out of 392

According to a recent report the healthcare system is also grappling with severe staffing shortages, particularly in specialised positions, which has led to compromised patient care. Despite having 52 Community Health Centres (CHCs) catering to 890 Primary Health Centres, the region faces a shortage of 104 specialists out of 220 sanctioned positions, including 25 surgeons, 25 anaesthesia specialists, 22 maternity specialists, and 26 paediatricians. As a result, patients are forced to seek treatment at higher-level facilities or private hospitals, further straining the healthcare infrastructure. Additionally, 647 out of 1677 posts for medical officers remain vacant, exacerbating the workload on existing doctors and contributing to substandard care.

At SKIMS Soura, the region’s premier tertiary hospital, only 1,900 of the 5,000 sanctioned positions are filled, severely impacting patient care. The nurse-to-patient ratio in all hospitals across Kashmir is dismal, raising concerns over the quality of care provided. The shortage of paramedical staff across various categories continues to worsen, with little progress made in addressing these long-standing gaps, thus undermining the effectiveness and accessibility of healthcare services in the region.

“The healthcare sector in Kashmir is in a deplorable state, where even basic necessities like rabies vaccines are unavailable. In rural areas, hospitals have become little more than abandoned structures or makeshift cow sheds. Many hospitals that were promised remain under construction or have been left incomplete, leaving the people to suffer in silence,” says Bhat.

Infrastructure

While the health and education sectors continue to struggle, the infrastructure in Jammu & Kashmir has seen significant improvements in recent years. The region’s urban areas have experienced a boom in infrastructure development, with major upgrades to roads, public transport, and electricity supply.

The long-awaited dream of the people of Jammu & Kashmir to have a railway network has been realised, with new tunnels being constructed that will significantly reduce travel time. These developments are particularly evident in the Sonmarg Highway and the Jammu-Kashmir National Highway, where the improved connectivity is set to transform travel and trade, making the region more accessible than ever before.

“The only positive development in Kashmir has been the focus on roads. While rural areas continue to suffer from neglect, urban regions have seen significant improvements in infrastructure, with roads being the sole area of focus for years. It is the one thing that has been achieved, but it remains the only bright spot in an otherwise challenging landscape,” Bhat adds.

Mir Imran

Advocate Mir Imran  from Handwara believes that the key issues of accountability, unemployment, and the lack of a conducive business environment in Jammu & Kashmir have not been adequately addressed.

“I believe that there is a pressing need to focus on accountability, equitable development, water supply, sanitation, and improving the overall quality of life in the region. To combat unemployment, we must invest in skill development and support local entrepreneurship, particularly in agriculture and tourism. The internet and technology can be a game changer for us. By investing in digital infrastructure and innovation, J&K can leap ahead, just as many successful nations have done before. This is not just about keeping up, it is about creating opportunities and shaping the future,” Imran tells Media India Group.

Imran emphasises that the upcoming budget should focus on infrastructure development, especially in remote areas, as it will pave the way for broader economic growth.

“The budget must prioritise employment generation, particularly in tourism, agriculture, and small industries, as these sectors hold immense potential. Agriculture is crucial to our local economy and provides livelihoods for many. We also need to invest more in healthcare and education, decentralising healthcare to improve access and focusing on specialised, student-centered education to prepare the next generation for the future. Looking at the progress of developed nations, their growth has stemmed from empowering their people to think, innovate, and create. They invested in technology and infrastructure, focusing on education, healthcare, and global connectivity. The internet has revolutionised economies, creating opportunities for industries to grow and facilitating global trade. For Jammu & Kashmir, the digital world can open new industries and create fresh avenues for growth in tech, agriculture, and tourism,” Imran adds.

Experts emphasise that the upcoming budget must prioritise key areas for the region’s development.

“Key promises made during the election, such as free electricity for eligible families, monthly stipends for economically disadvantaged women, and subsidised rations and LPG cylinders, must be delivered. Employment generation is critical, with a focus on creating 300,000 jobs, especially in agriculture, horticulture, tourism, and industry. A INR 200 billion special package from the central government is essential to fund critical projects like road connectivity, tourism infrastructure, and rural development. Strengthening healthcare infrastructure, with targeted funding for hospitals and the Basic Health Care Fund, is also a must. Moreover, skill development programmes aligned with tourism, technology, and agriculture are vital to tackle unemployment and bridge skill gaps. We must also improve fiscal discipline by cutting unnecessary administrative costs and reallocating resources effectively. Finally, promoting local entrepreneurship and supporting national initiatives like Make in India can further drive growth in tourism and industry in the region,” Bashir adds.

Bashir emphasises the need for a strategic approach in this year’s budget.

“The previous year’s budget was ambitious with its goals, but its execution was hindered by structural issues, bureaucratic incompetence, and financial dependence on the center. This year, it is crucial that the budget focuses on ensuring self-reliance, fostering economic growth, and creating long-term stability for the region. We cannot afford to repeat past mistakes, and we must take concrete steps to empower the region to thrive on its own,” Bashir adds.

Call for special package

As Jammu & Kashmir braces for its first state budget in six years, there is an urgent call for the allocation of a special financial package to address these persistent challenges. Government officials have proposed a INR 200 billion special package to cater to the unique needs of the region, which would focus on areas such as infrastructure development, employment generation, healthcare, and education.

This special package would aim to support local industries, including agriculture and handicrafts, which are major contributors to the region’s economy. Additionally, it would prioritise the development of high-quality educational and healthcare facilities, ensuring equitable access for all residents, particularly in remote areas.

As the J&K budget is about to be presented, stalkholders want budget to  focus on a holistic development strategy that goes beyond short-term administrative solutions. Experts argue that the region needs a comprehensive development plan that includes not only immediate financial allocations but also long-term investment in human capital, infrastructure, and local industry.

The special INR 200 billion package, if approved, could provide the much-needed boost to the region’s struggling sectors. However, many experts remain cautious, noting that funding alone will not solve the region’s problems. The key challenge lies in ensuring that funds are allocated wisely and transparently, with a focus on grassroots development.

For residents, however, the real question remains: will this budget be the turning point they have long waited for, or will it be just another missed opportunity? Only time will tell.

YOU MAY ALSO LIKE

0 COMMENTS

Leave a Reply

Your email address will not be published. Required fields are marked *