J&K outpaces northern states with 8.81% per capita income growth since 2019: Economic Survey

Though J&K’s per capita income, estimated at Rs 1,68,248 in 2025-26, remains below the national average of Rs 2,19,575, it has risen by around 170 percent between 2014-15 and 2025-26, indicating a narrowing gap over the period. This improvement suggests rising income levels, improved living standards, and enhanced economic opportunities for residents of Jammu and Kashmir, the report added.

Inflation in J&K declined from 4.5 percent in 2024 to 3.8 percent in 2025, while the unemployment rate on usual status (PS+SS) fell from 6.7 percent in 2019-20 to 6.1 percent in 2023-24. The Labour Force Participation Rate (LFPR) and Worker Population Ratio (WPR) also rose to 64.3 percent and 60.4 percent, respectively, in 2023-24, reflecting improved employment opportunities and economic activity.

The Economic Survey placed the credit-deposit ratio at 62.93 percent as of September 2025, with priority sector credit flow led by agriculture (48 percent), followed by MSMEs (23 percent) during the current financial year.

Sector-wise, the primary, secondary, and tertiary sectors are estimated to contribute 20.45 percent, 18.52 percent, and 61.02 percent, respectively, to Gross State Value Added (GSVA) in 2025-26. Gross Non-Performing Assets declined from 3.9 percent in March 2025 to 3.26 percent by September 2025.

Expecting further growth in revenue collection by March 2026, the report said average monthly revenue rose by 5.7 percent in FY23, 16.3 percent in FY24, and 3.90 percent in FY25. Revenue of Rs 13,521 crore was realised till November 2025, accounting for 64 percent of the Rs 21,121 crore collected in 2024-25.

The share of non-tax revenue in own resources increased from 29 percent in 2021-22 to 33 percent in 2024-25, largely due to a rise in power tariff contribution from 56 percent to 71 percent. However, in 2025-26 up to November, the share stood at 32.43 percent.

Tax revenue of Rs 9,136 crore—of which GST accounted for 58.88 percent—and non-tax revenue of Rs 4,386 crore were realised in the first eight months of the current financial year. Between 2022 and 2025, the highest increase in revenue was seen in taxes on power, which rose from Rs 2,716 crore to Rs 4,908 crore (80.71 percent), followed by GST (34.28 percent) and excise (27.42 percent). Collections from land revenue, sales tax, MST, vehicle tax, duties, and other taxes declined by 10.44 percent.

Revenue expenditure in the first eight months of the current financial year stood at Rs 45,157 crore, or 64 percent of the Rs 70,472 crore spent in 2024-25. Salaries and pensions accounted for over 52.42 percent of this expenditure. Capital expenditure during the period was Rs 7,933 crore, or 42 percent of the Rs 18,836 crore incurred in 2024-25.

Highlighting IT-based financial reforms aimed at improving transparency and accountability, the report said public debt constituted about 69 percent of total liabilities in 2024-25, with internal debt forming the bulk (68 percent) and loans from the Government of India accounting for just 0.4 percent. Provident Fund liabilities made up around 19 percent, with the remainder comprising insurance, pension funds, and other obligations.

The share of internal debt has increased from about 55 percent to 68 percent over the past decade, while Provident Fund liabilities declined from around 27 percent to 19 percent, reflecting improved debt management, greater fiscal transparency, longer maturities, and reduced rollover risk, the report added.