Budget 2026 proposes Rs 43,290 crores transfer to J&K in FY27, up 4.72 percent

New Delhi: Finance Minister Nirmala Sitharaman on Sunday proposed transfer of over Rs 43,290 crore to Jammu and Kashmir for 2026-27, higher by 4.72 per cent over the current fiscal.

According to the budget document, 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, an increase of 5 per cent.


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.