MUZAFFARABAD: The coalition government in Azad Jammu and Kash­mir (AJK) on Wednesday got its Rs310.2 billion deficit-free budget for the fiscal year 2025-26 approved by the Legislative Assem­bly, just hours after its presentation, capitalising on its numerical strength amid a boycott by the tiny opposition.

In an unusual development, three lawmakers from the coalition partner PML-N, who do not hold any official position, also walked out of the house after Finance Minister Abdul Majid Khan concluded his budget speech and, despite their objection, proceeded with the immediate passage of the budget through suspension of rules.

Earlier, the budget session was delayed by more than two hours as five opposition lawmakers — four from the PTI and one from the regional Jammu Kashmir People’s Party — sat at the entrance to the assembly hall in protest against what they anticipated was the government’s plan to “bulldoze the budget” the same day.

Initially, four to five cabinet members approached the opposition to convince them to end their protest and voice their concerns inside the hall, but they were told that verbal assurances aside, the government’s “ill will” was evident from the budget session’s agenda, which clearly mentioned the planned suspension of rules to pave the way for passage of the fiscal document the same day.

After the ministers returned in disappointment, Speaker Chaudhry Latif Akbar himself attempted to persuade the protesting legislators, but in vain. Later, treasury members made their way into the assembly hall by navigating the space on either side of sofas occupied by the opposition lawmakers.

Before the finance minister began his speech, he moved a resolution to suspend the rules, which was approved by the treasury benches with a majority vote. Mr Khan informed the house that Rs261.2bn for recurring expenditures would be met entirely from AJK’s own revenue receipts.

He said Rs67.47bn would be generated through income tax collection, Rs17.52bn from other taxes, Rs25bn from internal receipts, Rs1bn from water-use charges, and Rs1.2bn from capital receipts (loans and advances). A major chunk of income — Rs149bn — would come from AJK’s share in federal taxes (variable grant).

As for the development budget, he said its volume was Rs49bn, including a foreign component of Rs1bn. Pertinently, AJK’s development budget is provided by the federal government as a ‘development grant’.

Unveiling the 2024-25 budget, Mr Khan had put the development budget portfolio at Rs44bn, but the revised figures presented on Wednesday showed it amounted to only Rs28bn. It remained unclear whether the estimated Rs49bn development budget for the next fiscal year would meet the same fate.

In line with federal government’s proposals, he also announced an increase in pay and pensions of employees.

As he concluded his speech and was about to present the budgetary demands, PML-N regional president Shah Ghulam Qadir questioned the rationale behind the hasty passage of the budget.

“This house is supposed to hold a debate on each and every aspect of the budget,” he said.

Published in Dawn, June 19th, 2025