Srinagar, Aug. 4 -- By Sri Varshith Kumar Reddy E

Indian states now hold nearly a third of the country's general government debt. That single fact should colour how anyone reads a state budget this year, and Jammu and Kashmir's 2026-27 accounts belong squarely inside that larger story.

Its budget rests on a grant rather than a formula. That distinction determines whether its finances can survive a bad year, and on current evidence, they fail that test.

NITI Aayog's Fiscal Health Index 2026 splits India's states into four groups. Odisha tops the list with a score of 73.1. Goa and Jharkhand follow close behind, both pairing controlled deficits with own-tax revenues above 60 per cent of receipts. Punjab sits at the bottom with a score of ...