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Let centre bail J&K out of fiscal crisis 2/4/2015 10:24:08 PM If a recent communication from Governor, N.N. Vohra, to the Union Finance Minister is any indication the state Government in Jammu and Kashmir is faced with a serious financial crisis. The level of crisis has increased so much that the Government does not have money to pay salaries to the employees, especially to a large section of college teachers. These teachers have not received their salary for the last three months. And most of the development works, projects and activities stand stalled because contractors' bills have not been cleared. Governor N.N. Vohra has confirmed that the state is facing a serious financial crisis and needs immediate support of the central government to avert it. A Raj Bhavan spokesman said after several rounds of personal discussions with the state planning and finance secretaries and consultations with the chief secretary, the governor has addressed a detailed communication to the union finance minister regarding the financial crisis. "The governor's letter to the finance minister brings up the severe difficulties faced in funding the annual plan (2014-15) and the virtual break-down of the state's financial balance". The governor's recent visit to Delhi was part of his initiative to bail the state out of the fiscal crisis. He had a detailed meeting with Prime Minister, Narendra Modi and other functionaries of the central Government for seeking their urgent help to enable the state government to tide over the obtaining crisis. In fact the responsibility for finding a solution to the financial crisis has fallen on the shoulders of Vohra following the imposition of Governor's rule. The state had to be placed under the Governor's rule because the recent Assembly election had thrown up a hung House. And there was no other alternative but to impose the Governor's rule as various mainstream political parties had failed to forge an alliance for sharing power in Jammu and Kashmir. In 2002 and 2008, when the elections had thrown up a hung Assembly, coalition Governments were formed when the Congress framed an alliance with the PDP in 2002 and with the National Conference in 2008. This time the PDP, which had emerged as the single largest party in the Assembly had turned down offer of support from the NC and from the Congress. This had left scope for the PDP to forge an alliance with the BJP. And even if the new coalition rule assumes shape in Jammu and Kashmir it may take another 10 to 15 days and by that time the state Government will have nothing left in its coffers. Hence Vohra has to use all his cards for motivating the BJP led NDA Government to release additional funds. Apart from difficulties being faced by employees in receiving their salary on time other sectors too have been affected and this includes the power sector. Power Development Department in its Annual Performance Review 2014-15 has blamed "insufficient maintenance grants" for prolonged outages in the state. According to the APR submitted to State Electricity Regulatory Commission (SERC), the funds released for the maintenance of grid sub-stations and transmission lines to the PDD are not sufficient and that the department is facing many difficulties on this account. The Government does not have money for carrying out regular repair and maintenance of transformers. "Periodic maintenance of grid sub-stations and transmission lines is being carried out regularly. However, sufficient maintenance grants as per required norms don't remain available with the department making it to face difficulties on this account", the PDD report reads. It is time Vohra makes yet another determined bid for motivating the central Government for releasing additional funds. Even those college teachers who have not received their salary for the last three months, have appealed to Prime Minister Modi to intervene and ensure that funds were released in favour of the state Government. It is not yet clear whether the centre was awaiting the civilian regime to take over so that whatever additional money was released the credit for that should go to the new state Government. If that is the scheme of the BJP it is bad politics because till then the entire activities in the state of Jammu and Kashmir may get paralysed. This is not the time to study whether the previous NC-Congress Government was responsible for the current fiscal crisis or not. The primary job of the centre is to provide financial help to the state and that is all.   Share This News with Your Friends on Social Network     Comment on this Story

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