JAMMU/SRINAGAR, FEB 08 : Jammu and Kashmir’s transport sector generated Rs 942.22 crore in revenue for the government in 2024–25, emerging as a significant non-tax contributor to the Union Territory’s finances, with another Rs 706.35 crore already realised in the first nine months of 2025–26, according to the Economic Survey.
Official figures show that against a revised target of Rs 1,430 crore in FY25, the Transport Department mobilised Rs 942.22 crore through vehicle registrations, route permits, driving licences, fitness certifications and other regulatory services. In the ongoing fiscal, Rs 706.35 crore has been collected by December against a higher target of Rs 1,530 crore, indicating steady inflows from mobility-linked fees and taxes
The revenue growth is being driven by a rapid expansion of the vehicle base and a sharp rise in licensing activity across the Union Territory. The total number of registered vehicles has climbed to 27.36 lakh by the end of March 2025, reflecting the widening scale of the transport economy. During FY25 alone, 1.69 lakh new vehicles were added to the fleet, while another 1.47 lakh were registered in the current year up to December, each addition contributing to registration charges, taxes and related fees
District-wise concentration shows the scale of activity in urban centres. Jammu district accounts for over 10.61 lakh vehicles, the highest in the Union Territory, followed by Srinagar with more than 4.71 lakh vehicles, together forming the largest share of registrations and collections
Permit issuance and licence services also expanded significantly, directly feeding into departmental earnings. In FY25, the department issued 12,332 fresh route permits and renewed 21,289 permits. It processed 98,739 fresh driving licences and renewed 81,857 licences. For commercial vehicles, 13,558 fresh fitness certificates were issued and 91,644 renewals carried out, indicating the scale of regulatory oversight and fee collection
The momentum has continued in the current financial year. Up to December, 1,01,191 fresh driving licences were issued and 70,153 renewed. Authorities also processed 7,466 new route permits, 10,130 renewals and more than 82,000 vehicle fitness certifications, pointing to sustained growth in transport-related transactions
Revenue trends over the past few years show a consistent upward trajectory. Collections rose from Rs 629.65 crore in 2021–22 to Rs 762.63 crore in 2022–23 and Rs 925 crore in 2023–24 before reaching Rs 942.22 crore in 2024–25. With Rs 706.35 crore already realised within nine months this year, the department is on course for another strong performance
The Survey attributes improved compliance and collections to digitisation and service reforms. Key functions such as vehicle registration and licensing have been brought under the VAHAN and SARATHI platforms, enabling online processing and reducing delays. Several services are covered under the Public Services Guarantee Act to ensure time-bound delivery, while new infrastructure such as driver training and inspection centres and aggregator licensing for app-based taxis are being rolled out to formalise and strengthen the sector
With a growing fleet, rising number of licences and permits, and streamlined digital systems, the transport sector is steadily expanding its footprint in Jammu and Kashmir’s economy. The latest figures suggest it is not only facilitating mobility but also emerging as a dependable source of revenue for the government.
