Early Times Report
Srinagar, Dec 4: Jammu and Kashmir’s financial system is completely dependent on central grants. The figures paint a grim picture about the dependency syndrome dominating the fiscal set-up of the erstwhile state.
As per the official documents in possession of the Early Times, the Jammu and Kashmir government is dependent on grants-in-aid from the Government of India to the extent of around 50 percent entirely of the revenue receipts. The GoI had operated new Sub-Major Heads under Major Head-1601 Grants-in-Aid (GIA) for providing GIA to States during 2017-18 and discontinued Plan and Non-Plan classification.
Documents reveal that during 2017-18 an amount of Rs 22,702 crore was routed through State Budget as grants by the Government of India. In addition, there were more than 55 schemes involving a total amount of Rs 1,105 crore, which continued under direct funding mode by the Union Government to the J&K Implementing Agencies (Institutions, Corporations, Societies, etc.) during 2017-18. There was increase of Rs 477 crore i.e.76 per cent in direct transfer of funds from Union Government to implementing agencies.
As per the documents, the total grants were 51 % in the financial year of 2013-14, and in the Financial year of 2014-15, the grants were 56%. In the year 2015-16, the grants were 47 percent and in the year 2016-17, the grants were 49 percent. The non- plan grants were amounting to 4009 crores in 2013-14, and in 2014-15, 2015-16, 2016-17, they were 33343, 11,135, 12,776 respectively. Grants for centrally assisted and sponsored schemes were 826, 87, 1228 and 56 crores since 2013-14.
Jammu and Kashmir’s financial set up had a liability of Rs 79060 crore in 2018-19. The liability increased to Rs 83573 crore with an increase of Rs 4513 crore in 2019-20. These include 34291 crore market borrowing, 1237 crore loan from the center, Rs 3370 crore special security issued in the name of National Small Savings Fund, Rs 3574 crore loan from financial institutions and banks, 692 crore loan from RBI. 37162 crores from PF, 9709 crores from Reserve Fund. 3573 crore were borrowed from Power Bond. The CAG also warned the government of the increasing debt burden back then and asked it to take remedial measures at an earliest. In the budget for the year 2020-21, additional grant demands of 1200205.75 lakh have been approved by the central government for Jammu and Kashmir. It consists of Planning and Development Department-2935.29 Lakh, Power Development Department-990947.13, Finance Department-199225, Law-1598.10, Revenue-1124.18, Public Works-50158.42, Health-50323.76, Social Welfare-20523.98, Waterpower-50671.06, Fisheries Department 1998.83 an additional grant of Rs. Lakh was sought. |
