A People’s Budget |
As Jammu and Kashmir prepares to present its budget for the coming fiscal year, the administration stands at a critical juncture. The Union Territory’s economic landscape bears the scars of prolonged uncertainty, yet it also presents opportunities for transformative change. What J&K needs now is not merely a financial statement but a comprehensive economic vision. It should be a budget that addresses ground realities and lays the foundation for sustainable prosperity.
Understanding the Ground Reality
The economic challenges facing J&K are multifaceted. Unemployment rates, particularly among educated youth, remain alarmingly high. The private sector continues to struggle in creating its space in the economy of J&K with issues of creditworthiness and access to institutional finance. Agriculture, which employs nearly half the population, remains vulnerable to climate uncertainties and market volatilities. Meanwhile, the tourism sector, despite its revival, has not translated into broad-based economic benefits for local communities. The industrial base remains weak, and the manufacturing sector’s contribution to GSDP continues to lag behind national averages.
These challenges are compounded by infrastructural deficits like poor road connectivity in rural areas, unreliable power supply, inadequate healthcare facilities, and an education system struggling to meet contemporary demands. The fiscal situation itself constrains policy options, with the UT heavily dependent on central transfers while own tax revenues remain limited.
Prioritizing Employment Generation
Any meaningful budget must place employment generation at its core. The administration should announce a comprehensive J&K Employment Mission with clearly defined targets and timelines. This requires a multi-pronged approach: first, aggressive promotion of labour-intensive sectors like food processing, handicrafts, and tourism services through fiscal incentives and simplified regulatory frameworks. Second, establishment of sector-specific skill development centres aligned with market demands, particularly in hospitality, healthcare, construction, and IT-enabled services.
The budget should allocate substantial resources for entrepreneurship development, creating a dedicated fund for youth start-ups with easier access criteria than conventional banking channels. Special provisions for women entrepreneurs and marginalized communities would ensure inclusive growth. Additionally, reviving and strengthening industrial estates with modern amenities, reliable power, and streamlined clearances can catalyse manufacturing activities and create employment........