AJK Budget 2025–26: Rs 310.20 Billion Budget with Rs 49 Billion Development Outlay
The Azad Jammu and Kashmir (AJK) government presented a Rs 310.20 billion budget for FY 2025–26, reflecting a significant increase of Rs 86.2 billion from the revised Rs 224 billion budget of the previous fiscal year. Finance Minister Abdul Majid Khan introduced the budget in the Legislative Assembly, emphasizing fiscal discipline and federal support.
Revenue and Income Breakdown
The total estimated income for FY 2025–26 is Rs 261.20 billion, while development expenditure of Rs 49 billion will be supported by federal transfers. Key income sources include:
- Rs 85 billion from Inland Revenue
- Rs 19.58 billion from Electricity Department
- Rs 5 billion from Forests
- Rs 1.3 billion from Minerals
- Rs 1.2 billion from Printing Press
- Rs 555 million from Industries
- Rs 150 million from Tourism
- Rs 900 million from Religious Affairs
- Rs 104.9 billion from Federal Variable Grants
- Rs 1 billion from water use charges
- Rs 1.2 billion from loans and advances from government employees
Salary and Pension Adjustments
The budget includes a 10% increase in salaries and a 7% rise in pensions for government employees, aligning with federal government policy.
Non-Development Expenditures
Non-development expenditure for FY 2025–26 is set at Rs 261.20 billion. Major allocations include:
- Rs 52.78 billion for Education
- Rs 26.27 billion for Public Health
- Rs 49 billion for Pensions
- Rs 11.34 billion for Police
- Rs 6.70 billion for Communication & Public Works
- Rs 12.93 billion for Energy & Water Resources
- Rs 37.99 billion for State Trading (wheat subsidy)
Development Allocations by Sector
The Rs 49 billion development budget includes significant sector-wise allocations:
- Rs 15 billion for Communication & Works
- Rs 9.2 billion for Industries & Minerals
- Rs 8 billion each for Forests & Watershed and Information Technology
- Rs 6 billion for Public Health
- Rs 5 billion each for Education, Sports, and Local Government
- Rs 4.8 billion for Energy & Water Resources
- Rs 3 billion for Social Welfare & Women’s Development
- Rs 2.8 billion for AJK TEVTA
- Rs 2.5 billion for Physical Planning & Housing
- Rs 2 billion for Information & Media Development
- Rs 1.5 billion each for Civil Defense/SDMA and Environment
- Rs 1.15 billion for Land Administration
- Rs 750 million for Wildlife & Fisheries
- Rs 300 million for Transport
The AJK budget for FY 2025–26 reflects a balanced approach to fiscal management and development. With a major increase in resources and federal backing, the government has focused on accelerating social and infrastructure development, employee welfare, and strategic sectoral investment across the region.
