New Delhi, February 1, 2026 : The Union Government has proposed a total transfer of ₹43,290.29 crore to Jammu and Kashmir for the financial year 2026–27, marking an increase of 4.72 per cent over the ₹41,340.22 crore provided in the Revised Estimates (RE) of 2025–26, according to Union Budget documents presented by Finance Minister Nirmala Sitharaman on Sunday.
The enhanced allocation reflects the Centre’s continued fiscal support to the Union Territory for governance, development, infrastructure creation and disaster resilience.
Key Highlights of the Proposed Transfer:
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Total Central Transfers (FY27): ₹43,290.29 crore
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2025–26 (RE): ₹41,340.22 crore
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Overall Increase: ₹1,950.07 crore (↑ 4.72%)
Central Assistance to UT:
The major component of the transfer comes under ‘Central Assistance to Union Territory’, which has been increased by ₹2,030.97 crore, rising from ₹40,619.30 crore in 2025–26 to ₹42,650.27 crore in 2026–27, reflecting a 5 per cent growth.
Flood Recovery and Disaster Support:
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Allocation for the Jhelum–Tawi Flood Recovery Project (JTFRP–EAP) has been significantly enhanced from ₹185.34 crore to ₹259.25 crore, registering a sharp 39.9 per cent increase, underscoring the Centre’s focus on flood mitigation and climate resilience.
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Funding for disaster relief and capital support has been retained at ₹279 crore, unchanged from the previous fiscal year.
Capital Expenditure:
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The allocation for capital expenditure support to the UT has been maintained at ₹101.77 crore for FY 2026–27, ensuring continuity in infrastructure and development projects.
The proposed transfers reaffirm the Centre’s commitment to supporting Jammu and Kashmir’s fiscal stability, disaster preparedness, and long-term development agenda while maintaining consistency in capital and relief-related funding.
