AJK unveils record Rs286b budget with major boost for development

Finance Minister Chaudhry Qasim Majeed presents the largest fiscal package in the state's history, allocating Rs36 billion for development whilst prioritising education, healthcare, and law enforcement.

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 and social justice. Presenting the financial plan during the assembly’s budget session in the state capital, the finance minister stated that 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 fiscal plan allocates Rs36 billion for development expenditures and Rs250 billion for non-development expenditures. The government expects to generate Rs75.2 billion in internal tax revenue, whilst the federal variable grant has been estimated at Rs146 billion.

Announcing the Education Package 2026, Majeed stated that the government would create 3,308 new teaching posts, rationalise 1,629 existing positions, upgrade 709 educational institutions, and strengthen more than 300 schools across AJK. The state package also includes the establishment of 109 new educational institutions and the creation of 726 additional posts in higher education institutions. Significant allocations have also been mobilised to improve healthcare services, with several Basic Health Units scheduled to be upgraded to Rural Health Centres, whilst selected Rural Health Centres will be elevated to Tehsil Headquarters Hospitals. The minister also announced the establishment of a modern cardiac hospital at Chakswari alongside 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, backed by 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 per cent of development spending will be allocated to social sectors, 12 per cent to productive sectors, and 57 per cent to infrastructure projects. Key initiatives under this infrastructure allocation include the construction of 671 kilometres of roads, the rehabilitation of 394 kilometres of existing roads, the construction of RCC and Bailey bridges, the expansion of electricity transmission networks, the installation of new transformers, and the provision of 30,000 new electricity connections.

The budget also focuses heavily on digital transformation and economic empowerment, with plans to establish IT Excellence Centres in all districts, digitise land records, introduce E-Stamping services, and expand telehealth facilities. In the agriculture and livestock sectors, the government 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. Furthermore, 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.