Srinagar, July 23 (KNS): The Union Budget for 2024-25, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha today, has allocated ₹42,277.74 crore for Jammu and Kashmir, marking a modest increase of 1.2% over the previous fiscal’s allocation.
A substantial portion of this allocation, ₹40,619.3 crore, is designated as Central Assistance to Union Territories to address the resource gap in Jammu and Kashmir.
This amount includes ₹7,900 crore, sanctioned as an advance from the Contingency Fund of India, which will be recouped once the Demands for Grants for 2024-25 are passed by Parliament and the connected Appropriation Act receives presidential assent.
Finance Minister Nirmala Sitharaman stated, “The allocation reflects the Centre’s commitment to the development and stability of Jammu and Kashmir. We aim to address the region’s unique challenges and drive significant infrastructure growth.”
Key Allocations
Disaster Response and Mitigation:
The budget has allocated ₹279 crore to Jammu and Kashmir as grants towards contributions to the Union Territory Disaster Response Fund. This fund is intended to cover expenditures related to mitigating natural disasters.
Hydroelectric Projects:
₹130 crore has been allocated as grants for equity contribution towards the 624 MW Kiru Hydro Electric Project.
₹476.44 crore has been earmarked for the equity contribution to the 800 MW Ratle Hydro Electric Project.
An additional ₹171.23 crore has been allocated as grants for the 540 MW KWR Hydro Electric Project.
Infrastructure and Recovery Initiatives
A grant of ₹500 crore has been provided to support the Jhelum and Tawi Flood Recovery Project (JTFRP), highlighting the Centre’s focus on addressing flood-related issues and improving disaster resilience in the region.
Capital Expenditure and Police Support
To support infrastructure projects, ₹101.77 crore has been allocated for capital expenditure, aiming to bridge the resource gap. Additionally, the Centre has earmarked ₹9,789.42 crore for the Jammu and Kashmir Police, underscoring the importance of maintaining law and order in the Union Territory.
In her address, Sitharaman emphasized the strategic importance of these allocations, stating, “By focusing on infrastructure, disaster response, and security, we are laying the groundwork for a more prosperous and stable Jammu and Kashmir.”(KNS)
