Modi to provide liberal financial aid to J&K - Early Times Newspaper Jammu Kashmir

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Modi to provide liberal financial aid to J&K

2/1/2015 10:27:13 PM

That the BJP led NDA Government is keen to provide financial assistance to Jammu and Kashmir state which is faced with severe financial crisis is evident from the release of over Rs1100 crores for immediate restoration of public infrastructure that had been damaged owing to floods that caused massive devastation in various parts of the state.The centre plans to provide liberal financial assistance to the Government in Jammu and Kashmir which is facing unprecedented fiscal crisis.And the first step taken by the centre was when the Union Home Minister Rajnath Singh approved a rehabilitation package for restoration of public infrastructure in the flood-ravaged Jammu and Kashmir.The decision was taken after Jammu and Kashmir Governor NN Vohra met Rajnath Singh in New Delhi the other day. The Central Government revealed that Rs 1,102.56 crore had been sanctioned from the National Disaster Response Fund to meet expenditures incurred by the state government for the immediate restoration of public infrastructure.A Sum of Rs 20 crore has been sanctioned from the National Rural Drinking Water Programme and Rs 634.99 crore have already been spent on immediate rehabilitation in the wake of floods. Vohra who met Prime Minister,Narendra Modi,too raised the issue of financial crisis apart from briefing him about the political situation with the reference to prospects of formation of BJP-PDP coalition Government having brightened.
The Governor had separate meetings with Finance Minister Arun Jaitley and Home Minister Rajnath Singh. He discussed with them financial crisis being faced by the state government and measures being taken for the relief and rehabilitation of flood victims of Jammu and Kashmir.The state was hit by devastating floods during September last year badly crippling its economy. Consequently, the state now has empty coffers with liabilities swelling to over Rs 2,000 crore. The Governor apprised the Finance Minister of the situation in the state. He said that the state government continued to reel under the burden of huge structural negative Balance in Current Revenues (BCR) which has grown over the years.Vohra pleaded with the union Finance Minister for immediate release of additional funds so that the state Government was not forced to embark on market borrowings. Since the state of Jammu and Kashmir banks on over 80 per cent financial support for its plan and non-plan activities, the current financial crisis could be addressed and tackled only by the Central Government. Reports indicated that the State Government may not be able to release monthly salary to its employees and wages to the contractual labourers in case there was delay in the release of first instalment of additional financial assistance. The state Government wants the centre to help Jammu and Kashmir Government to resolve liabilities that have swelled to over Rs.2,000 crores. Once these liabilities were cleared the state Government could be relieved of severe problem. Reports said that once the BJP-PDP Coalition Government assumed office, the Modi led Central Government will enhance the annual plan and non-plan allocations.According to these reports,the union Government may allow increase of 10 to 20 per cent on the annual financial assistance to the plan and no-plan activities and on state and centrally sponsored schemes so that people could realize that the BJP-PDP coalition had been framed for the benefit of the masses.
No doubt that during the last six years the central Government remained liberal while releasing additional funds but the benefit of these funds were not percolated to the masses because of poor governance resulting in misuse of these funds.
During 2014-2015 financial year the annual plan and non-plan figures were Actual Budget Revised Budget 2012-13 Estimates Estimates Estimates 2013-2014 2013-2014 2014-2015 Budgetary Support for Central Plan 304739.05 419068.00 356492.88 236591.51 Internal and Extra Budgetary Resources of Public Enterprises 193736.99 261055.39 257641.13 247940. 94 Central Plan Outlay 498476.04 680123. 39 614134.01 484532.45 Central Assistance for State and Union Territory Plans 108885.68 136254.00 119038.93 338408.49 And if the Modi led Government enhanced this support by only 10 per cent it could promote and increase development level.

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