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Early Times Report
JAMMU, Apr 9: The erstwhile government led by Peoples Democratic Party in Jammu and Kashmir could not achieve the target of Revenue Surplus and Fiscal Deficit as per 14th FC targets.
According to the details available with Early Times Fiscal Deficit (FD) increased from Rs 2,778 crore in the financial year of 2017-18 to Rs 13,337 crore in 2018-19 with outstanding market loans amounting to Rs 30,947 crore which was 73 per cent of outstanding total internal debt of Rs 42,221 crore.
Financial records in possession of this newspaper reveal that Jammu and Kashmir remained in Revenue Deficit (RD) during the period 2014-15 to 2018-19, except 2016-17 and 2017-18. There was Revenue Deficit (RD) of Rs 4,859 crore in 2018-19 as compared to Revenue Surplus (RS) of Rs 7,595 crore in 2017-18 mainly due to implementation of 7th Pay Commission recommendation for J&K Government employees. There was an increase in salary by Rs 8,029 crore during 2018-19 contributing to the Revenue Deficit. This increase in salary also included arrears to the tune of Rs 3,900 crore on account of implementation of pay commission recommendation which were credited to GPF Accounts by way of book adjustment. This has resulted in onetime impact on Revenue Deficit to that extent. The Revenue Deficit of Rs 4,859 crore during 2018-19 was also understated by Rs 2,277.88 crore owing to misclassification and short transfer of funds/interest to the Reserve Funds.
The Fiscal Deficit (FD) increased from Rs 5,608 crore in 2014-15 to Rs 13,337crore in 2018-19. The percentage of FD to GSDP increased from 5.70 per cent in 2014-15 to 8.64 per cent in 2018-19.Fiscal Deficit increased by Rs 10,559 crore from Rs 2,778 crore in 2017-18 to Rs 13,337 crore in 2018-19. During 2018-19, 64 per cent of Fiscal Deficit was financed from Public Account and remaining 36 per cent was financed through market borrowings. Non Debt Receipts of the State mainly included Revenue Receipts and recoveries of loans and advances which were higher than the Primary Revenue Expenditure. The Total Primary Expenditure increased from Rs 31,017 crore in 2014-15 to Rs 59,363 crore in 2018-19. This was on account of increase in Primary Revenue Expenditure by Rs 25,085 crore, while Capital Expenditure increased by Rs 3,279 crore. The Primary Revenue Surplus which was Rs 3,143 crore in 2014-15 increased further to Rs 12,259 crore in 2017-18 and during 2018-19 it reduced to Rs 350 crore. The Primary Deficit which was Rs 2,075 crore in 2014-15 converted to Primary Surplus of Rs 1,885 crore during 2017-18 and in 2018-19 there is again Primary Deficit of Rs 8,128 crore.
Furthermore, Jammu and Kashmir being a special category state, had high share in Central Taxes and grants from the Central Government. The State's dependence on central resources increased from 71 per cent in 2014-15 to 72 per cent in 2018-19. Over the last five years, there was increase in the Total Capital Expenditure (including Loans and Advances) from Rs 5,221 crore to Rs 8,482 crore.
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