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Govt diverts Rs 3823 cr to pay salary bill
Development takes backseat again
7/2/2015 12:29:10 AM
Peerzada Ummer
Early Times Report
Srinagar, July 1: The J&K government has diverted Rs 3823 crore, which had been sanctioned by the Centre for state's infrastructure, to pay salary of its employees.
According to the details available with Early Times, the Centre has curtailed its grant to the state to Rs 511 crore, apparently after the latter showed non-serious approach in completion of the pending projects.
The grant-in-aid from the Union government during 2012-13 was Rs 14354 crore which got slashed to Rs 13843 crore this year.
In 2009, Union grants to J&K amounted to 66 percent out of the total expenditure of various developmental projects. In 2010-11, it remained stagnant at 66 percent. But during the financial year 2011-12, the grant was recorded as 59 percent. It further went by four more percent and was recorded as 55 percent during the financial year 2012-13. A decline of four more percent was seen during 2013-14 and the percentage of grants was 51.
The main reason for such a serious trend as per reports is that the state government has diverted thousands of crore, coming from the Centre for developmental projects, to meet its own expenses which include salaries, other costs of employees and para employees and also the pensions and post-retirement benefits.
Such entities constitute nearly 63.77 percent of the total expenditure. It also constitutes 80.12 percent of the total non-plan revenue expenditure which is Rs 25219 crore.
To meet the expenses of employees, the state dispensation has been giving a wide berth to the developmental works with thousands of crore being diverted from plan to the non-plan sector of the state.
The documents reveal that in financial year 2012-13, Rs 3746 crore of plan grants were diverted to meet the non-plan expenditure. During the last financial year, plan grants diverted to non-plans was recorded at Rs 3823 crore.
There has been a steady deterioration of the state finances since 1990 on account of a range of reasons including rising salary, pension expenditure, growing power deficit, rising interest liabilities, loan repayments besides several others.
J&K's Finance Minister Haseeb Drabu had earlier admitted on the floor of the House in March this year that the financial crunch in the state is because of the mis-match between funds flow.
Meanwhile, reports say that the amounts required to clear the pending bills at various treasuries is to the tune of Rs 2282 crore. However, there is no liability on account of emoluments of the employees and other workers in the state.
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