The Azad Jammu and Kashmir (AJK) government on Monday presented a Rs286 billion budget for the fiscal year 2025-26 in the Legislative Assembly, with reduced development spending amid a significant revenue shortfall.

Finance Minister Chaudhry Qasim Majeed presented the budget, allocating Rs36 billion for development expenditures and Rs250 billion for non-development spending.

While presenting the budget, Majeed said the government had reduced the development allocation by Rs13 billion after failing to meet its revenue target.

He said the government had projected revenues of Rs85 billion but managed to collect only Rs66 billion, leaving a shortfall of Rs19 billion.

Despite fiscal constraints, the government announced a series of infrastructure and public welfare initiatives.

Under the development programme, 671 new roads will be constructed, while 394 kilometres of existing roads will be rehabilitated. Each electoral constituency will also receive 10 kilometres of new link roads.

The budget earmarks Rs1 billion for the reconstruction of schools left incomplete after the devastating 2005 earthquake.

Another Rs4.1 billion has been allocated for the expansion and construction of hospitals across the territory.

The government said the budget aims to maintain essential public services while prioritising infrastructure, education and healthcare despite reduced financial resources.