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| J&K caught in serious fiscal web | | |
Jammu, May 31
Despite tall claims of fiscal discipline and series of packages from the central government, the economic position of Jammu and Kashmir is going from bad to worst.
Even though the state government is making organised efforts to plug the gaps in income and expenditure but only long term sustainable program can take the state out of present economic scenario which has already assumed dangerous proportions. Adding more to the worries of the state government is the anytime-expected recommendations of the sixth pay commission.
The chairman of the sixth pay commission, who was recently in Jammu and Kashmir during the last leg of his consultations in various states, is likely to submit its report to the Central government in next few days. Though the recommendations are yet to be formally made public but it is reliably learnt that the pay commission has recommended a 33 per cent hike in the salaries of the central and state government.
Since implementations of the recommendations come almost at uniformity at state and the centre, a hike in 33 per cent in the existing salaries will literally breakdown the back bone of the fiscal position of Jammu and Kashmir. This will consume a major portion of the annual and budget and leave little for the developmental program in the state sector.
An ever-growing demand for employment notwithstanding and the political promises galore, a whooping 38 per cent of the total annual budget of Jammu and Kashmir is coughed in salaries and pensions. No other state has such a huge salary and pension component in the overall budget.
The state government currently has 375,000 employees whose and their annual salary budget is Rs 4389 Crore. Adding to this is annual dispensation of another Rs 1010 crores in the shape of pensions. This makes 38 per cent of the total annual budget of Jammu and Kashmir.
This economic fragility is happening in a scenario when over 30,000 posts in various departments are lying vacant. There are more than four lakhs registered unemployed youth in the state but the government does not have required money even to support the salary budget of 30,000 vacancies.
In past five months, different departments have referred 12,000 posts to the State Public Service Commission, Subordinate Services Recruitment Board and other recruiting agencies at divisional level. Their recruitment is currently under several stages of the process.
According to financial experts, with recruitment of 12,000 more employees and implementing the recommendations of the sixth pay commission the salary and pension component will go upto 75 per cent of the total annual budget –thus leaving behind only 25 per cent for the development and social sector.
“Such an alarming situation is unimaginable when state shells out more money in salaries and has little for development, there will be no development at all”, said a financial expert. When asked about the remedial measures, a top officer in the Finance department said that the Government is considering forego of pensions. There may be negotiations at certain level to have one time retirement package instead of recurring pensions, said the officer.
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