After Statehood Loss, J&K’s Financial Dependence on Centre Has Grown: CM Omar

 

Suhail Khan

 

Srinagar, Dec 17 : In a candid assessment of the Kashmir’s fiscal health, Chief Minister Omar Abdullah stated on Wednesday that Jammu and Kashmir’s financial reliance on the Central government has intensified following its reorganization as a Union Territory.

 

The remarks came in response to Union Finance Minister Nirmala Sitharaman’s recent emphasis on fiscal discipline for states to manage debt ratios. Abdullah, who also holds the finance portfolio, outlined a significant structural shift in J&K’s financial framework.

 

“Our financial self-sufficiency has diminished,” Abdullah told reporters as per Kashmir Convener. “Where we once received a defined share of central taxes as a state, that channel no longer exists. Consequently, a greater portion of our budgetary requirements must now be directly borne by the Centre.”

Despite these challenges, the Chief Minister affirmed his administration’s commitment to maintaining fiscal responsibility.

 

Shifting to tourism—a cornerstone of the local economy—Abdullah detailed a dual-pronged approach. While promoting adventure tourism, his government places “the highest emphasis” on visitor safety, citing recent incidents elsewhere as a cautionary tale.

 

“We are fully committed to developing this sector,” he said, “but not at the expense of security. We must ensure that stringent safety protocols are in place to prevent accidents.” he said as per Kashmir Convener.

On unlocking the region’s full tourism potential, Abdullah pointed to existing infrastructural constraints. He argued for prioritizing the reopening of well-known but currently restricted destinations before promoting lesser-known sites.

 

“Promotion is ongoing, yet several key destinations remain inaccessible,” he explained. “In Gulmarg, movement beyond the Gondola is limited; areas like Drung and Doodhpathri are closed. Our immediate focus must be on opening these established attractions to the public.”

 

The Chief Minister as per Kashmir Convener also addressed the ongoing electricity crisis, linking reduced power generation to lower water discharge in rivers. With winter intensifying, he appealed to residents for judicious power use while acknowledging the essential need for heating.

 

“We are aware of the severe cold and the public’s needs,” Abdullah said, “and we urge everyone to consume electricity wisely as we navigate this shortage.”