The Government of Jammu and Kashmir is set to allocate ₹285 crore for the Constituency Development Fund (CDF) for its legislators, to be released starting the next financial year, beginning April 1, 2025. While salaries for the Members of the Legislative Assembly (MLAs) have already been disbursed under existing guidelines, the lack of a budgetary provision for the remaining months of the current financial year (2024-25) means that MLAs will not receive the CDF until the new fiscal year.

No CDF for Current Financial Year

Due to the absence of a Legislative Assembly when the annual Union Territory (UT) budget was approved by Parliament, no provisions were made for the MLA CDF for the ongoing financial year. Officials confirmed that an internal review by the Government has indicated no potential for increasing the annual allocation, which stood at ₹3 crore per legislator in 2018 when the Assembly was dissolved.

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At the time, Jammu and Kashmir lacked both Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs). Today, however, the Government has initiated grants for PRIs and ULBs and plans to conduct elections for these bodies. Furthermore, the District Development Councils (DDCs) have one year of tenure left and continue to receive budgets for developmental works. This ensures balanced development across all administrative levels, leaving no scope for enhancing the CDF beyond the ₹3 crore annual allocation.

Provisions for the Upcoming Budget

For the upcoming fiscal year 2025-26, the Government will allocate ₹285 crore to cover the 90-member Assembly, which could increase to 95 with the nomination of five additional MLAs. This provision will be introduced in the Legislature during the budget sessions scheduled for February-March 2025.

The Assembly is likely to decide whether the CDF will be applicable from April 1, 2025, or retroactively from October 2024, when the MLAs officially took their oaths of office.

Vacancies and Nominated MLAs

The current Assembly has two vacancies in Nagrota and Budgam constituencies, which are expected to be filled before April 2025. These vacancies arose from the resignation of former Chief Minister Omar Abdullah, who retained the Ganderbal seat, and the untimely death of BJP MLA Devender Singh Rana from Nagrota.

Additionally, five nominated MLAs, including two women, two Kashmiri migrants (one of whom will also be a woman), and one refugee from Pakistan-occupied Jammu Kashmir (PoJK), will further expand the Assembly. Although these members do not represent specific constituencies, they will be given the option to designate segments for CDF expenditure.

Guidelines for CDF Utilization

Along with releasing the CDF allocation, the Government will issue detailed guidelines outlining permissible expenditures and sectoral ceilings. This ensures accountability and targeted utilization of funds for developmental projects within constituencies.

Salary and Allowances for MLAs

The MLAs currently receive a monthly package of ₹1.60 lakh, which includes ₹80,000 each for salary and allowances, the same as in 2018. Any changes to these amounts would require the Assembly to pass a bill for salary and allowance revisions.

Historical Context: Abrogation of Special Status

Before the abrogation of Jammu and Kashmir’s special status and its conversion into a Union Territory, the region also had an Upper House, the Legislative Council, whose members (MLCs) were entitled to CDF allocations equal to MLAs. However, the Legislative Council was dissolved in 2019, leaving the Assembly as the sole legislative body.

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The Council had 36 members, including a chairperson and vice-chairperson, and members had the option to choose their constituencies for CDF utilization.

As the Government finalizes its plans for reintroducing the MLA Constituency Development Fund in Jammu and Kashmir, the allocation of ₹285 crore in the 2025-26 budget reflects a commitment to development at the grassroots level. With detailed guidelines for fund utilization and equitable distribution, the initiative aims to empower legislators while balancing the development needs of PRIs, ULBs, and DDCs.

Stay tuned for updates as the budgetary provisions take shape, ensuring a robust framework for sustainable development in the Union Territory.