MUZAFFARABAD (Kashmir English): The Azad Jammu and Kashmir (AJK) Legislative Assembly has unanimously approved the budget for fiscal year 2025-26 with an outlay of Rs 310 billion, a 30% increase from the previous year.
The opposition boycotted the budget session, while key members of the ruling coalition including PML-N President Shah Ghulam Qadir and former Prime Minister Raja Muhammad Farooq Haider, staged a walkout in protest, rejecting the procedure of the budget’s approval.
The AJK Assembly Speaker adjourned the budget session has been till 11 am on June 23
AJK Finance Minister Abdul Majid Khan presented the tax-free budget in the Legislative Assembly. He also announced a 10 percent increase in the salaries of government employees and a seven percent increase in pensions.
Delivering his budget speech in the AJK Assembly in Muzaffarabad, the finance minister, Abdul Majid Khan, said the total estimated budget size for the upcoming fiscal year is set at Rs310.2 billion, with an increase of Rs8.62 billion compared to the previous year.
Due to the efforts of the current government and the support of the federal government, an increase of Rs 86 billion is being made for the next fiscal year, AJK Finance Minister said.
The federal government is projected to contribute Rs 105 billion in the Federal Variable Grant, Rs 75 billion in revenue from inland, Rs 15 billion in electricity, and Rs 0.45 billion in the Forest Department.
Other revenues over Rs 20 billion will accrue from the AJK Transport Authority, Armed Services Board, and other departments.
Key takeaways from budget 2025-26
The government has set the tax revenue target at Rs 85 billion.
- Income tax target – Rs64 billion
- Other taxes – Rs17.52 billion
Furthermore, the other revenue generation includes;
- Variable grants – Rs149 billion
- State revenue – Rs25 billion
- Water usage charges – Rs1 billion
- Capital Receipts (Loan & Advances) – Rs1.2 billion
Development Budget
In his speech, the Finance Minister said that the government has proposed a development program of Rs49 billion for the next fiscal year, which includes foreign aid of Rs1 billion, keeping in mind its needs for the development of the state.
Against the available resources, it is proposed to implement projects in the areas of roads, public health, education, energy and water resources, physical planning and housing, governance, local government and rural development, information technology, tourism, disaster management, irrigation and agriculture, etc.
The budget will spur growth and development in different sectors in AJK. Prime Minister Chaudhry Anwarul Haq stressed that the government is focusing on the education and health sectors, along with taking fiscal austerity measures.
The Finance Minister revealed that total receipts and income are estimated at Rs 2.6120 trillion, and expenditures at Rs 2.6120 trillion.
Detailing the breakdown of total expenditures for fiscal year 2025-26, the Finance Minister allocated Rs 9.2665 billion for Services and General Administration, Rs 1.9875 billion for Board of Revenue, Rs 11.34 billion for Interior Department, Rs 6.7023 billion for Communications and Public Works, Rs 52.7867 billion for Education, Rs 26.2749 billion for Public Health, Rs 2.0128 billion for Relief and Rehabilitation, and Rs 431.3 million for Public Relations.
Similarly, Rs 3.8954 billion has been proposed for Judiciary, Rs 1.3040 billion for Agriculture, Rs 1.18 billion for Livestock and Dairy Development, Rs 37.9942 billion for State Trading, Rs 2.2567 billion for Forests, Wildlife and Fisheries, Rs 12.9270 billion for Energy and Water Resources, and Rs 1.1144 billion for Local Government and Rural Development.
Miscellaneous expenditures account for Rs 31.386220 billion, capital expenditures Rs 5 billion, bringing total expenditures to an estimated Rs 2.6120 trillion. Total development expenditures for the financial year 2025-26 are estimated at Rs 49 billion.
