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| Think of more infrastructure, regional balance: Economists to FM | | |
AMANDEEP SINGH
Jammu, Jan 30: While layman is feeling pinch of inflation without knowing the terminologies like ‘recession’ and ‘depression’ new Government’s Finance Minister Abdul Rahim Rather is the subject from kitchens to the classes of economics as Jammu and Kashmir keenly awaits new budget proposals for the upcoming financial year.
Early Times spoke to a cross section of well meaning economists who have been associated with policy or guidance, in or the other way. For Rather, there is a common suggestion from all: focus on infrastructure, put regions in balance and show figures as they actually stand.
As the annual budget is anticipated to be out soon the economists of Jammu are of the opinion that as the budget is an instrument of achieving the goals established under a macroeconomic policy of the state, the Finance Minister should focus more on the basic infrastructural development in the state as it is a condition precedent for all sort of resource and revenue development.
Prof. R.L. Bhat, Department of Economics, JU who for a number of times has been a part of the pre budget meetings called by the finance minister before every budget formulation, explains budget as an instrument by which the goals set up in the macro economic policy of the government are achieved. He emphasizes that the budget should be a pure reflection of the macroeconomic policy of the government and should not be effected by pressure asserted by any pressure group and at present should focus on the overall infrastructural development of the state.
According to Prof. Prakash Chandra, Department of Economics, JU, the annual budget floated by the government shall not be biased in favor of any one region of the state but should focus to reduce inter regional and intra regional disparities in terms of infrastructure. Prof. Chandra alleged that according to his study and researches the policies of the government, even in terms of development, has been discriminatory against Jammu and Ladakh regions.
Explaining the meaning of infrastructural development the economists of Jammu emphasize on developing the road network across the state, telecommunication network, electricity supply and other basic amenities. The economists also emphasize that a proper education policy is required to generate industrially employable labor force and even after spending a huge amount the literacy rate in the state is very low so the policies of the government should be focused more on providing technical education rather than mere theoretical education. In the long term it will be this infrastructural development which will lead to resource development in the state.
Further, till now the state has been very much dependent upon the central government to meet its financial commitments because of a comparatively low revenue generation. For this the government should focus to promote tourism not only in the valley but also in the other regions as all the three regions of the state have potential to become desired tourist destinations. Along with tourism horticulture, floriculture and handicraft industry if developed properly can generate great revenue and employment opportunities in the state but according to the economists our state has yet not been able to exploit the natural advantages of climate and resources for the purpose of horticulture and floriculture as compared to our neighbors like Himachal Pradesh and Punjab.
On the issue of industrialization in the state the economists are of the opinion that the government should focus on developing the traditional handicraft industry along with small scale or medium scale industries but should encourage local entrepreneurs rather than inviting industrialist from outside by presenting perks because such industrialist enter the state only to enjoy the perks and are not much bothered about creating job opportunities in the state. According to Prof. Bhat the special status of the state is also a hindrance in the inflow of capital into the state as the industrialist from outside cannot plan a permanent settlement in the state. Therefore, the government should encourage the local entrepreneur.
According to Prof. Dipankar Sen Gupta, another challenge to be faced by the government while formulating the annual budget is the over-employment in the government sector. He furnished that the government employee ratio to the general public is the highest in our state as compared to any other state in our country, thus, posing a heavy salary burden on the state government. Further the government should try to solve the unemployment issue by increasing opportunities in the private sector and by providing self employment packages rather than further employment in the government sector resulting into non-productive employment.
So the economists of Jammu are of the opinion that resource and revenue generation should be the priority of the government for which infrastructural development is a prerequisite. So the annual budget shall focus on the infrastructural development, technical and professional education and promotion of local entrepreneurship along with development of tourism throughout the state.
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