Srinagar, Feb 05 : Jammu and Kashmir’s economy is estimated to grow by 5.82 per cent in real terms during 2025-26, while nominal GSDP is projected to expand by 8.89 per cent, according to official estimates.
The size of the Union Territory’s economy has been placed at Rs 2.86 lakh crore in nominal terms and Rs 1.50 lakh crore in real terms for 2025-26. During the period 2019-20 to 2024-25, J&K recorded a compound annual growth rate (CAGR) of 4.47 per cent in real GSDP.
Per capita income (NSDP) in nominal terms is estimated at Rs 1,68,243 in 2025-26, lower than the national average of Rs 2,19,575. However, J&K’s per capita income grew at a CAGR of 8.81 per cent between 2019-20 and 2024-25, higher than several northern States and UTs including Himachal Pradesh, Delhi, Punjab, Chandigarh and Haryana.
Jammu and Kashmir contributes about 0.8 per cent to the national GDP, broadly in line with its population share. The tertiary sector continues to dominate the economy, contributing 61.02 per cent to GSVA in 2025-26, followed by the primary sector (20.45 per cent) and secondary sector (18.52 per cent).
Inflation in the Union Territory declined from 4.5 per cent in 2024 to 3.8 per cent in 2025, a drop of 0.7 percentage points.
During the current financial year 2025-26 (up to November 2025), revenue realisation stood at Rs 13,521 crore, about 64 per cent of the Rs 21,121 crore realised in FY 2024-25. Tax revenue of Rs 9,136 crore and non-tax revenue of Rs 4,386 crore were realised in the first eight months of FY26.
Non-tax revenue’s share in own resources increased from 29 per cent in FY22 to 33 per cent in FY25, with power tariff accounting for 71 per cent of non-tax revenue in FY25. Among major revenue heads, taxes on power rose by 80.71 per cent between FY22 and FY25, followed by growth in GST and excise collections.
Revenue expenditure in the first eight months of FY26 was Rs 45,157 crore, while capital expenditure stood at Rs 7,933 crore.
The unemployment rate on usual status declined from 6.7 per cent in 2019-20 to 6.1 per cent in 2023-24. Labour Force Participation Rate and Worker Population Ratio increased to 64.3 per cent and 60.4 per cent, respectively.
Under employment and credit-linked schemes, over 10,800 units were established in 2024-25, providing self-employment to around 0.85 lakh youth. Banking infrastructure expanded to 14,007 points by September 2025, with the credit-deposit ratio at 62.93 per cent and gross NPAs declining to 3.26 per cent.
In agriculture, food grain production increased by 1.33 per cent over the last year, while vegetable production reached 496 thousand quintals in 2024-25, reflecting a shift towards high-value and organic crops.(KNS).
[12:04 pm, 05/02/2026] Sajid Raina KNS: Revenue realisation at Rs 13,521 crore till Nov; power taxes drive non-tax growth in J&K
Non-tax revenue share rises to 33% in FY25, driven by power tariff, Power taxes register 80.71% growth between FY22 and FY25
Sajad Hussain
Srinagar, Feb 05(KNS): Jammu and Kashmir has realised Rs 13,521 crore in revenue during the current financial year 2025-26 till November, accounting for about 64 per cent of the Rs 21,121 crore collected in FY 2024-25, according to official data.
The contribution of non-tax revenue to total own resources increased from 29 per cent in FY 2021-22 to 33 per cent in FY 2024-25, largely due to a sharp rise in the share of power tariff, which grew from 56 per cent to 71 per cent during the same period. In FY 2025-26 up to November, the contribution of non-tax revenue stood at 32.43 per cent.
Average monthly revenue growth stood at 5.7 per cent in FY23, 16.3 per cent in FY24, and 3.9 per cent in FY25. Officials expect revenue growth to improve by the end of FY26, as a significant portion of collections is typically realised in the last quarter.
During the first eight months of FY26, tax revenue of Rs 9,136 crore was realised, which is 64.12 per cent of the Rs 14,249 crore collected in FY25.
GST accounted for 58.88 per cent of tax revenue during the period. Non-tax revenue stood at Rs 4,386 crore, or 63.82 per cent of the Rs 6,872 crore realised in FY25.
Between FY22 and FY25, the highest increase in revenue was recorded in taxes on power, which rose by 80.71 per cent from Rs 2,716 crore to Rs 4,908 crore, followed by a 34.28 per cent increase in GST collections and a 27.42 per cent rise in excise revenue.
However, collections from land revenue, sales tax, motor spirit tax, vehicle tax, duties and other taxes declined by 10.44 per cent.
Revenue expenditure during the first eight months of FY26 stood at Rs 45,157 crore, about 64 per cent of the Rs 70,472 crore spent in FY25.
Salary and pension payments accounted for over 52.42 per cent of revenue expenditure. Capital expenditure during the period was Rs 7,933 crore, or 42 per cent of the Rs 18,836 crore incurred in FY25.
In FY 2024-25, public debt constituted about 69 per cent of J&K’s total liabilities, with internal debt accounting for 68 per cent, while Government of India loans formed just 0.4 per cent, indicating a shift towards market-based borrowing.
The share of the Provident Fund declined to 19 per cent, reflecting changes in debt composition over the past decade.
The UT’s FY26 budget of Rs 1,12,310 crore is lower than the Rs 1,18,390 crore budgeted in FY25. Central grants remain the largest source of funding, accounting for 56–66 per cent of total resources, while own revenue contributes 22–24 per cent and borrowings make up 10–19 per cent.
Officials said IT-enabled financial reforms, including BEAMS, GeM, e-Stamping, e-Abgari and public monitoring portals, have improved transparency and execution, with completed projects rising to 69,285 in FY25 and 11,821 works completed so far in FY26.(KNS).
