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| Liabilities swell to Rs 68,000 Cr | | JK in centre's `debt trap' | | Early Times Report
SRINAGAR, Jan 31: Jammu and Kashmir government borrows crores of rupees from the Centre annually to meet its expenditure component.
Official documents of the Finance Department reveal that Rs 7531 crore liabilities increased since last year. In the earlier years too, the liabilities have increased over Rs 7000 crore in each fiscal. The figures reveal that Jammu and Kashmir's liabilities have swelled to Rs 68,000 crore.
"The three fiscal parameters - revenue deficit, fiscal deficit and outstanding liability-indicates the extent of overall fiscal balance in the finances of the state government during the specified period. The nature of deficit is an indicator of the prudence of budgetary policy of the state government. Another useful measure of the deficit-base in a state's fiscal policy is the State's Own Deficit (SOD)," the documents reveal.
J&K has been constantly seeking loans from the Centre.
The demand in 2016-17 almost increased by nearly 30 per cent when state was governed by PDP and BJP coalition.
Experts claim the "mismatch" between total public expenditure and revenue generation coupled with implementation of the Goods (GST) has been a driving force behind the increasing demand of grants (loans) by the state.
Figures suggest that New Delhi released more than Rs 1307 crore to J&K as compensation for the loss in revenue during last one year.
Noted economist Professor Nisar Ali said there has been "mismanagement" between expenditure and revenue of the state.
"The power purchase has been an important factor for swelling liabilities. The GST has further increased the mismanagement between expenditure and tax revenue," he said.
He also blamed Jammu and Kashmir's political leadership for increasing state's liabilities. "The annual liabilities increase due to power purchase despite the state having huge hydro resources. The state's leadership has failed to fight for return of power projects," he said. "It also depends upon the government of India how it wants to find a solution to this problem," he added.
Endorsing view of Professor Nisar, a senior official of Finance Department said that revenue generation avenues, power purchases and bulging expenditure on salaries are the main contributor to the increasing liabilities of the state. |
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