JKP to get Rs 9925 cr, Rs 828 cr more from current FY
*Mountain trails development may revive trekking tourism
Excelsior Correspondent
JAMMU, Feb 1: Finance Minister Nirmala Sitharaman today proposed increased grants to Jammu and Kashmir worth Rs 43,290 crore for the financial year of 2026-27, which were nearly Rs 2000 crore more than the current year of 2025-26 and Rs 9925.50 crore to Jammu and Kashmir Police, which is now directly controlled by the Union Home Ministry, up from Rs 9097 cr in the revised estimates of 2025-26.
She announced the grants while presenting national budget in the Parliament today.
Chief Minister Omar Abdullah, who holds charge of the Finance Ministry, will present his second budget in the Legislature here on February 6.
In a significant announcement, the Union Finance Minister proposed development of ecologically sustainable mountain trails in Jammu and Kashmir, Himachal Pradesh and Uttarakhand.
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“Mountain trails in Himachal Pradesh, Uttarakhand and Jammu and Kashmir will be developed besides Araku Valley in Eastern Ghats and Podhigai Malai in the Western Ghats, turtle trains along key nesting site in coastal areas of Odisha, Karnataka and Kerala and bird watching trails along Pulikat lake in Andhra Pradesh and Tamil Nadu,” she said.
Local trekkers and organisers described the announcement as a long-awaited recognition of J&K’s untapped adventure tourism potential saying this could be a turning point for trekking economy.
There are 84 trekking routes identified in Kashmir and 32 in Jammu region.
Under the new budget provisions, mountain trail development will include eco-friendly infrastructure, rescue and communication systems, and training programmes for local youth.
Trekking in J&K was once a vibrant part of the tourism calendar, drawing visitors to alpine routes between May and September.
“If mountain trails are revived with clear safety protocols, signage, waste-management systems and trained guides, it will bring back trekkers who once came from across the country and abroad,” they said, adding the move could boost employment for hundreds of guides and porters who lost livelihoods after trekking routes were suspended.
“If the Government promotes offbeat tourism, including hiking and trekking in forests and alpine regions, it will create significant livelihood opportunities. Local youth and even older adults with fitness can be trained as eco-guides to operate these trails safely,” the officials said.
The Forest Department, as per the officials, has identified and developed several trekking routes across both Jammu and Kashmir regions.
“The routes vary from 2 km to 10 km and are designed with safety in mind, including benches and resting points,” they said.
According to the budget proposals, total transfers to the Union Territory have been pegged at Rs 43,290.29 crore, up from Rs 41,340.22 crore in 2025-26 Revised Estimates (RE).
The funds have been proposed as ‘Central Assistance to Union Territory’, which has risen by Rs 2,030.97 crore, from Rs 40,619.30 crore in 2025-26 to Rs 42,650.27 crore in 2026-27.
There is a rise in the funding for the Jhelum-Tawi Flood Recovery Project (JTFRP-EAP) from Rs 185.34 crore to Rs 259.25 crore in 2026-27, a rise of 39.9 per cent.
The fund transfer towards disaster relief and capital support stands at Rs 279 crore, same as in 2025-26. Also, the amount for capital expenditure of the UT has been retained at Rs 101.77 crore for the next fiscal year.
Additionally, Rs 101.77 crore has been allocated for support for capital expenditure of the Union Territory, intended to facilitate infrastructure creation, promote economic growth and generate employment.
The Centre has also made provision for grants towards equity contribution for the construction of the 624 MW Kiru Hydro Electric Project on the Chenab river in Jammu region. The objective of the project is to harness the river’s energy potential and enhance power generation capacity in Jammu and Kashmir.
All the funds have been provided in the form of grants-in-aid to the Union Territory Government.
Additionally, the Jammu and Kashmir Police – which is now directly controlled by the Home Ministry has been allocated Rs 9,925.50 crore. The allocation is up from Rs 9,097 crore in the revised estimate of 2025-26.
The Union Budget also allocated Rs 255233.53 crore to the Ministry of Home Affairs, with the majority of the funds — Rs 173802.53 crore — being given to Central police forces like CRPF, BSF and CISF, responsible for internal security, border guarding and security of vital installations.
The Union Budget 2025-26 had allocated Rs 2,33,210.68 crore (BE) to the Ministry helmed by Union Home Minister Amit Shah.
The largest among the CAPFs, the Central Reserve Police Force (CRPF) is mostly deployed for internal security duties, operations against terrorists in Jammu and Kashmir, Naxals in central and eastern India and insurgents in the northeast, while the Border Security Force (BSF) is tasked to guard over 6000 km borders with Pakistan and Bangladesh besides conducting internal security duties.
Meanwhile, the announcement by Union Finance Minister Nirmala Sitharaman in her budget speech to support the high-value nut crops, including walnut, has brought a fresh wave of optimism for nearly seven lakh people whose livelihoods depend on the struggling walnut trade in Jammu and Kashmir.
Following the announcement, the air in the Valley orchards feels a little lighter and a possible answer to the struggle which was not limited to the harvest but also about their survival.
The walnut trade of Jammu and Kashmir contributes over 90 per cent of the crop output, but those associated with the trade had been appealing to authorities as it had become increasingly burdensome to sustain.
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