A Detailed Analysis of Union Budget 2025: Expectations and Reactions from Kashmir
As Union Finance Minister Nirmala Sitharaman gears up to unveil the Union Budget on February 1, 2025, hopes are high across Jammu and Kashmir. The region, known for its natural beauty and cultural richness, has faced unique economic challenges that demand special attention in the upcoming budget. Citizens, business leaders, and youth alike are eager to see measures that stimulate economic growth, boost tourism, enhance infrastructure, and create jobs.
From the picturesque valleys of Ganderbal to bustling trade centers in Srinagar, voices resonate with a mix of hope and urgency. Here’s an in-depth look at the aspirations, allocations, and implications of the Union Budget for the people of Kashmir.
Voices from the Valley: Aspirations of the People
Grassroots Development and Funding Needs
Javid Ahmad, a resident of Ganderbal, calls for significant funding to address pending projects and grassroots development. “There are many unresolved issues, with several major projects pending. The government should allocate sufficient funds so that Jammu and Kashmir can progress at the grassroots level,” he emphasized.
His sentiment echoes the broader demand for investments in infrastructure and welfare programs to uplift rural areas, improve connectivity, and enhance the quality of life.
Youth Scholarships and Employment Opportunities
Manzoor Ahmad, a young Kashmiri, highlights the need for special scholarships and employment programs. “The budget should benefit the middle class and unemployed youth,” he said, adding that government-backed initiatives could provide skills training and entrepreneurial support for the younger generation.
With Kashmir’s youth population brimming with potential, targeted policies could unlock new opportunities in education, technology, and tourism.
Reviving Business and Trade
Bashir Ahmad, a businessman in Srinagar, emphasized the urgency of reviving the local economy. “We are unable to pay bank EMIs, school fees, or make payments to our dealers. We hope for a special package for businessmen,” he explained.
The demand for financial relief and incentives extends across multiple sectors, including handicrafts, horticulture, and hospitality. These industries form the backbone of Kashmir’s economy and have been severely impacted by recent challenges.
Key Highlights of Union Budget 2025
The Good News: Promising Developments
- Education and Skill Development
- ₹50,077.95 crore for higher education: A 7.74% increase from last year, enabling the establishment of 50,000 Atal Tinkering Labs and 10,000 additional medical college seats.
- This focus aligns with the aspirations of Kashmiri youth seeking scholarships and enhanced educational infrastructure.
- Middle-Class Tax Relief
- Individuals earning up to ₹12 lakh annually will pay no income tax under the new tax regime.
- This move aims to reduce the financial burden on middle-class families, allowing for higher disposable income and consumer spending.
- Infrastructure and Capital Expenditure
- A record ₹10 lakh crore allocated for capital expenditure, marking a 33% increase.
- The fund includes ₹2.4 lakh crore for railway modernization and ₹35,000 crore for energy transition projects.
- Improved roads, better transport facilities, and upgrades to Srinagar Airport could directly benefit the region.
- Agriculture and Horticulture Support
- ₹20 lakh crore target for agriculture credit, ensuring better access to financing for farmers.
- This could bolster Kashmir’s horticulture sector, known for apples, saffron, and almonds.
- Healthcare Expansion
- Plans for 157 new nursing colleges and an expansion of medical seats by 75,000 over five years.
- This is a significant step toward addressing healthcare infrastructure gaps in remote regions of Kashmir.
The Bad News: Challenges Ahead
- Fiscal Deficit Concerns
- The fiscal deficit target is 4.4% of GDP, higher than previous years.
- Increased borrowing could lead to long-term debt challenges.
- Higher Taxes on Consumer Goods
- Basic Customs Duty on certain products, like interactive flat panel displays, increased from 10% to 20%, potentially impacting affordability.
- Exclusion of Exemptions
- While the new tax regime offers middle-class relief, it eliminates exemptions on insurance, housing loans, and other investments, which might not suit everyone.
- Inflation Risks
- Despite measures to curb food inflation, global agricultural prices and weather uncertainties remain threats.
Expectations from Kashmir’s Business Fraternity
The business community in Kashmir has outlined clear priorities for the Union Budget:
- Tourism Revival
- Incentives to promote winter tourism in Gulmarg, Pahalgam, and Sonamarg.
- Investments in snow-clearing equipment and infrastructure to ensure uninterrupted access to these destinations.
- Handicrafts Sector Support
- Subsidies for artisans and exporters to revive traditional crafts like pashmina shawls and papier-mâché.
- Transport and Connectivity
- Upgraded road networks and expanded air connectivity to improve trade and tourism.
- Financial Relief Packages
- Loan restructuring schemes and incentives for businesses to recover from losses incurred during the pandemic and other disruptions.
- Employment Programs
- Special focus on skill development centers for youth and targeted employment programs for daily wage workers and unemployed SPOs.
A Balanced Budget for Growth and Welfare
The Union Budget 2025 has the potential to address Kashmir’s unique challenges while laying the foundation for sustainable growth. Key focus areas include:
- Education and Youth Empowerment
- Scholarships, skill development programs, and job creation are critical for tapping into Kashmir’s demographic dividend.
- Tourism Infrastructure
- Modernizing facilities in tourist hotspots and promoting eco-tourism can attract visitors year-round, boosting the local economy.
- Agricultural Innovations
- Encouraging the adoption of modern farming techniques and providing better market access for horticulture products can uplift farmers.
- Strengthening Small Businesses
- Financial incentives, easier access to credit, and subsidies can support entrepreneurs in handicrafts, trade, and hospitality.
Hope for a Bright Future
As the Union Budget 2025 unfolds, the people of Kashmir are optimistic yet vigilant. Their aspirations for development, employment, and economic revival reflect the collective desire to see their region thrive.
