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Why J&K traders are upset with Budget 2026: ‘Allocation doesn’t match losses after Pahalgam attack’

In her Budget speech in Parliament Sunday, Sitharaman proposed Rs 43,290.29 crore in transfers to J&K for 2026-27—Rs 1,959.07 crore more than the revised estimate of Rs 41,340.22 crore for the current year.

Union Minister for Finance Nirmala Sitharaman. (Express Photo by Tashi Tobgyal)

4 min readJammuFeb 2, 2026 08:04 AM IST First published on: Feb 2, 2026 at 07:16 AM IST

The Union Budget presented by Finance Minister Nirmala Sitharaman, which proposes an additional allocation of nearly Rs 2,000 crore for Jammu and Kashmir over the current financial year, has failed to satisfy traders in the Union Territory, who say it did not match the tourism losses suffered in the aftermath of the Pahalgam attack.

In her Budget speech in Parliament Sunday, Sitharaman proposed Rs 43,290.29 crore in transfers to J&K for 2026-27—Rs 1,959.07 crore more than the revised estimate of Rs 41,340.22 crore for the current year. The allocation includes Rs 279 crore as grants for the UT Disaster Response Fund, Rs 259.25 crore as equity for the Jhelum Tawi Flood Recovery Project, and Rs 101.77 crore to support capital expenditure.

However, Jammu Chamber of Commerce and Industry president Arun Gupta said the increase was inadequate in view of the losses suffered by the general public — including traders, hoteliers and transporters. He attributed the losses to the departure of tourists following the Pahalgam terror attack and the subsequent hostilities between India and Pakistan after the launch of Operation Sindoor to destroy terror infrastructure across the border.

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He added that incessant rains, cloudbursts and floods had also caused extensive damage. “Though the Union Budget has addressed all sectors across the country, the allocation to J&K does not match the losses suffered by the general public, including traders, hoteliers, transporters and others,” Gupta said.

Rahul Sahai, chairman of the Indian Chamber of Commerce and Industries in Jammu and Kashmir, described the budget as progressive and sustainable for the country as a whole but said it had failed to meet the expectations of J&K as a conflict-affected region.

“The Budget reflects a strong focus on sustainable infrastructure development and appears balanced from a national perspective, but from a region-specific point of view, it is not as per our expectations in terms of industries, especially considering that Jammu and Kashmir is a conflict zone,” he told reporters.

However, he said there was a noticeable absence of a targeted and special economic framework for Jammu and Kashmir. “Our biggest expectations were with regard to Jammu and Kashmir, that it should receive a little more funding, especially to strengthen the MSME sector,” he said.

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J&K Democratic Conference general secretary Kabla Singh criticised the budget, saying it reinforces policies that benefit big capital, financial markets and private investors instead of addressing India’s deep structural inequalities. By retaining the existing share of central taxes for states and pushing fiscal austerity in the name of “discipline,” the government had chosen balance sheets over basic human needs, he said.

Describing the budget as capital-friendly and not people-centric, Singh said that while unemployment, inflation and agrarian distress continue to devastate workers, farmers and small traders, there was no serious move towards progressive taxation of wealth and corporate profits. “The richest sections of society are shielded, while public services remain underfunded,” he added.