Visitors take images as the location is covered with fallen leaves of the Chinar trees throughout the fall season at Chinar bagh, in Srinagar.|Picture Credit: ANI
Jammu and Kashmir Chief Minister Omar Abdullah’s conference with Union Finance Minister Nirmala Sitharaman today comes as the Union Territory deals with growing financial pressure, decreasing tax earnings and a downturn in tourist following the April 22 Pahalgam attack.
Authorities knowledgeable about the conversations stated Abdullah looked for extra main help to assist the administration handle installing monetary restrictions, in the middle of diminishing earnings and increasing expense dedications.
Main figures reveal Jammu and Kashmir’s Goods and Services Tax (GST) collections was up to 551 crore in October 2025, a 9 percent decrease from 608 crore in the exact same month in 2015. Abdullah stated at the Federation of Indian Chambers of Commerce and Industry (FICCI) occasion in Srinagar last month that modifications in GST rates were most likely to lower the UT’s earnings by as much as 1,000 crore this financial.
Following his conference with the Finance Minister, J&K Chief Minister’s workplace published on X, “The conference concentrated on enhancing facilities, enhancing financial investment and guaranteeing ongoing financial backing for welfare-driven efforts in J&K”.
A senior authorities stated the GST dip is considerable, and the UT’s own tax base is not broadening quick enough. “The CM pushed for continual main assistance”, he included.
Tourist, a significant motorist of regional financial activity, decreased following the horror attack in Pahalgam previously this year. Hotel operators stated reservations fell significantly in the weeks after the attack, and the typical fall uptick did not completely materialise.
“Tourist circulation in October and November stayed much low, which affected numerous sectors, specifically trade, hospitality and transportation”, Qazi Tauseef, representative of the Kashmir Economic Alliance (KEA) informed businessline
He, nevertheless, revealed want to see much better days ahead for the tourist sector.
“Bookings for the upcoming winter have actually currently started to get and stakeholders throughout the sectors are totally prepared to invite travelers”, Tauseef stated.
A downturn in tourism-linked deals has actually even more weighed on service-sector GST. Economic experts state J&K’s minimal internal earnings capability, integrated with controlled loaning ceilings, makes it reliant on main grants to money facilities jobs and well-being plans.
“Until tourist stabilises and GST collections recuperate, monetary pressures are most likely to continue,” stated a Srinagar-based financial expert.
The Finance Ministry has actually not provided a declaration on the CM’s demand, however authorities stated conversations on extra assistance are anticipated to continue in the coming weeks.
Released on November 21, 2025
