AJK unveils record Rs286b budget

Rs36b earmarked for development as education, health receive major boost

MIRPUR:

Azad Jammu and Kashmir (AJK) Finance Minister Chaudhry Qasim Majeed on Monday presented a record Rs286 billion budget for the fiscal year 2026-27 in the Legislative Assembly, describing it as the largest budget in the state's history and a reflection of the government's commitment to public welfare, economic growth and social justice.

Presenting the budget during the assembly's budget session in the state capital, the finance minister said the total outlay for the new fiscal year has been fixed at Rs286 billion, compared with the revised estimate of Rs262.165 billion for 2025-26, reflecting an increase of Rs23.835 billion.

The budget allocates Rs36 billion for development expenditures and Rs250 billion for non-development expenditures. The government expects to generate Rs75.2 billion in tax revenue, while the federal variable grant has been estimated at Rs146 billion.

Announcing the Education Package 2026, Majeed said the government would create 3,308 new teaching posts, rationalize 1,629 existing positions, upgrade 709 educational institutions and strengthen more than 300 schools across AJK. The package also includes the establishment of 109 new educational institutions and the creation of 726 additional posts in higher education institutions.

The finance minister said significant allocations had been made to improve healthcare services. Several Basic Health Units will be upgraded to Rural Health Centres, while selected Rural Health Centres will be elevated to Tehsil Headquarters Hospitals.

He also announced the establishment of a modern cardiac hospital at Chakswari and increased stipends for house officers and postgraduate medical trainees.

To strengthen law enforcement, the government approved the establishment of a Counter Terrorism Department (CTD) within the AJK Police with 473 new posts.

A comprehensive martyrs' package was also announced for police personnel, providing compensation ranging from Rs100 million to Rs200 million, depending on rank, along with continued salary and service benefits for the families of martyred officers until their retirement age.

The Annual Development Programme (ADP) for 2026-27 has been set at Rs36 billion, including Rs1 billion in foreign assistance.

According to the finance minister, 31 percent of development spending will be allocated to social sectors, 12 percent to productive sectors and 57 percent to infrastructure projects.

Key initiatives include the construction of 671 kilometres of roads, rehabilitation of 394 kilometres of existing roads, construction of RCC and Bailey bridges, expansion of electricity transmission networks, installation of new transformers and provision of 30,000 new electricity connections.

The budget also focuses on digital transformation and economic empowerment. The government plans to establish IT Excellence Centres in all districts, digitize land records, introduce E-Stamping services and expand telehealth facilities.

In the agriculture and livestock sectors, it will distribute 100,000 fruit plants, establish demonstration plots for ginger, turmeric and soybean cultivation, provide grants for the purchase of 600 high-breed cows and distribute 70,000 poultry birds among widows and underprivileged women.

Interest-free loans will be extended to 2,267 skilled youth under the Prime Minister's Youth Loan Programme and to 30,000 beneficiaries through Akhuwat Islamic Microfinance.