New Delhi, Feb 1: The Union Government has allocated ₹43,290.29 crore for the Union Territory of Jammu and Kashmir in the Union Budget 2026–27, marking an increase of nearly ₹2,000 crore over the current financial year and signalling a renewed push for development in the region.
Presenting the Budget in Parliament, Finance Minister Nirmala Sitharaman said the enhanced allocation aims to support infrastructure development, public services and economic growth in Jammu and Kashmir, which remains a priority area for the Centre.
The Budget also places a strong emphasis on eco-tourism and nature-based travel, with Jammu and Kashmir identified as a key beneficiary. Highlighting India’s tourism potential, Sitharaman said the country has the opportunity to offer world-class trekking and hiking experiences.
As part of this initiative, the government will develop sustainable mountain trails in Jammu and Kashmir, along with Himachal Pradesh and Uttarakhand. Similar projects are planned in Araku Valley in the Eastern Ghats and Pudigai Malai in the Western Ghats, aimed at promoting environmentally responsible tourism while generating local livelihoods.
Officials said the combined focus on higher budgetary support and sustainable tourism is expected to boost economic activity, employment and regional connectivity in Jammu and Kashmir in the coming year.
