AJK presents Rs286 billion budget for FY27

MUZAFFARABAD: Azad Jammu and Kashmir Finance Minister Chaudhry Qasim Majeed on Monday laid out a Rs286 billion budget for the 2026-27 fiscal year in the Legislative Assembly, saying it was the biggest financial plan in the territory’s history and aimed at welfare, economic progress and social equity.

During the budget session in the state capital, Majeed said the new outlay stood at Rs286 billion against a revised estimate of Rs262.165 billion for 2025-26, marking an increase of Rs23.835 billion. Of the total, Rs36 billion has been earmarked for development spending and Rs250 billion for non-development expenditures.

The finance minister said the government expected Rs75.2 billion in tax receipts, while the federal variable grant had been estimated at Rs146 billion. He also announced the Annual Development Programme for 2026-27 at Rs36 billion, including Rs1 billion in foreign assistance.

Education and health allocations

Under the Education Package 2026, the AJK government plans to create 3,308 new teaching positions and rationalise 1,629 existing posts. The package also provides for the upgradation of 709 educational institutions, strengthening of more than 300 schools, establishment of 109 new institutions and creation of 726 additional posts in higher education institutions.

Majeed said the budget included major allocations for the health sector. Several Basic Health Units are to be upgraded into Rural Health Centres, while selected Rural Health Centres will be raised to the level of Tehsil Headquarters Hospitals. He also announced a modern cardiac hospital at Chakswari and said stipends for house officers and postgraduate medical trainees would be increased.

Police, infrastructure and digital plans

To bolster law enforcement capacity, the minister announced the formation of a Counter Terrorism Department within AJK Police with 473 new posts. He also unveiled a martyrs’ package for police personnel under which compensation will range from Rs100 million to Rs200 million depending on rank, while the families of martyred officers will continue to receive salary and service benefits until the officers’ retirement age.

According to the budget details presented in the assembly, 31 percent of development spending will go to social sectors, 12 percent to productive sectors and 57 percent to infrastructure. Planned schemes include construction of 671 kilometres of roads, rehabilitation of another 394 kilometres, construction of RCC and Bailey bridges, expansion of power transmission systems, installation of new transformers and provision of 30,000 fresh electricity connections.

The budget also includes measures focused on digitisation and service delivery. The government plans to set up IT Excellence Centres in all districts, digitise land records, roll out e-stamping services and widen telehealth facilities.

Agriculture and youth support

In the agriculture and livestock sectors, the government plans to distribute 100,000 fruit plants, establish demonstration plots for ginger, turmeric and soybean, provide grants for the purchase of 600 high-breed cows and distribute 70,000 poultry birds among widows and low-income women.

Majeed further said interest-free financing would be provided to 2,267 skilled young people under the Prime Minister’s Youth Loan Programme, while 30,000 beneficiaries would receive support through Akhuwat Islamic Microfinance.