Jammu & Kashmir’s Gross State Domestic Product (GSDP) growth has remained in the double digits for the past four fiscals, hovering between 11 and 12 per cent, according to the latest report by the Comptroller and Auditor General (CAG). At first glance, these figures suggest a robust and accelerating economy, with the size of the UT’s economy rising from ₹1.67 lakh crore in 2020-21 to ₹2.62 lakh crore in 2024-25 and per capita income climbing steadily from ₹1,01,645 to ₹1,54,826 over the same period.
However, a closer look reveals that this growth is largely jobless. Unemployment remains high across the region, and both private investment and public spending on capital projects have remained constrained. Revenue expenditure continues to dominate the UT’s fiscal profile, accounting for over 85 per cent of total expenditure, with committed costs and subsidies alone consuming nearly 58 per cent. As a result, capital expenditure, critical for infrastructure development, employment generation, and long-term economic resilience, has remained below budgeted levels, limiting the region’s ability to translate economic growth into meaningful livelihood opportunities.
Dependence on central grants also continues to be substantial, while own-tax revenue growth remains modest at 2.5 per cent. Rising debt, ballooning liabilities, and pending off-budget borrowings further exacerbate fiscal vulnerabilities. Moreover, delayed submission of utilisation certificates, pending accounts of autonomous bodies, and misclassification of expenditures under minor heads raise serious questions about transparency and financial governance.
While initiatives such as the Janbhagidari portal and partial steps toward financial digitisation are commendable, they remain insufficient to address structural challenges. Without a sharp increase in public capital spending, systematic revenue augmentation, and policies to incentivise private sector investment, the current growth will remain largely cosmetic—benefiting few while leaving large sections of the population without adequate employment or income growth.
The CAG’s report is a reminder that numbers alone cannot reflect real progress. For J&K to truly prosper, economic growth must be inclusive, fiscally sustainable and employment-generating. The government must urgently focus on job creation, infrastructure investment and better fiscal management to ensure that growth translates into tangible opportunities for all its citizens.
