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| Budget 2010-11 : Rather has much to review | | |
(* Daya Sagar :: Sr coloumnist of Kashmir affairs and a social activist [email protected] )
*"Har Ek Raah Mein Chiraag Jalana Hai Mera Kaam, Tewar Hawayon Kay Mein Dekha Naheen Karta", said Abdul Rahim Rather while presenting the JK Budget 2010-11. Good, people expect a lot good from him. A. R Rather is known for his commitment for betterment , rather he has proved in the past as well, great people’s hopes rest in him for putting reins on money drain.
The J&K Finance Minster deserves great appreciation for his zero tolerance budget estimates of Rs.22885 Crore and just O.4% increase ( Rs.9 Crore ) in the fiscal deficit for the year previous year. State GSDP for current financial year was estimated at Rs 38,298 crore but , at constant prices, the GSDP was worked out to Rs 26,153 crore, a growth rate of 6.87 per cent. This tells the status of economy that Mr. A. R. Rather has been given to handle.. Per capita income in the State has been worked out at Rs 33,285 at current prices and Rs 22,730 at constant prices. In case this figure is believed , it means that there a very wide disparity of income of a few JKites and bulk of JKites.. The Government has assigned for monitoring to an independent professional agencies its 150 projects costing Rs 744 crore in consultation with the Planning Commission. Finance Minister must push early reporting so that corrections could be applied. It is a welcome disclosure. But there should be a sealed time frame.
Even for ADB funded projects evaluation be got done by agencies outside ERA / ADB /Associates so that new ADB /WB loan /AID funded works are not mismanaged.
E economy of the Sate has been exposed where in a Budget 2010-11 of Rs.26000 crore the non plan expenditure is as high as Rs 18000 crore. . A major amount of about Rs.8500 crore would go to the government employees ( Rs 8200 crore pay and allowances of the Government employees / ex employees, Rs 129 crore on migrant salaries even after 20 years of migration and , Rs 180 crore for pensions and retirement benefits ). The direct State tax revenue as disclosed is hardly Rs 5000 crore from State So what ever growth and market expenditure is being seen would be out of funds from center.
No doubt Mr. A. R. Rather can not do much under circumstances . But he has disappointed the POK Displaced persons once again. When you can pay Rs.129 crore as migrant salary without your having any genuine resources (even after 20 years .It otherwise also reflects on the seriousness of the Governments of the past about the J&K affairs ) why has not been there a clear declaration once for all for the relief / compensation / claims to the POK displaced persons could be simply asked. Sheikh Abdullah had so passionately reacted to the requirements of the POK DPs even in hard days of 1950 y ( though it was after their displacement and ceasefire).
The Government has constituted two Rehabilitation Task Force for Kashmir and Jammu divisions to revive closed and sick units. The Task Force constituted by the Prime Minister has recommended soft loans for revival of sick units for which a corpus fund of Rs 100 crore has been recommended. But budget proposals are silent about the reorganization and reconstruction of State Public Sector. It was .in 2005 that government disclosed plans for assets reconstruction fund and funding viable PSE. The PSEs are sick. The employees resort to strikes and remain without wages for months. Even wages under payment of wages act are not paid, the gratuity under payment of gratuity Act is in arrears for many, a number of PSE employees have died without getting superannuation benefits. When government can not honour the obligations under Acts of Parliament / Legislature for its own companies how could government get the same enforced for those who are working in private sector. Although the budget has a provision of Rs.60 crore for PSU employee handshake schemes it has no mention for clearance of the liability on account of employees already retired from the companies / corporations owned by the Government and for that Finance Minister must allocate in this budget as some liabilities are may be over 5 year old. Mr. Rather must consider this in the name of justice and moral / legal duty of his government as employer keeping in view that so deficit government has kept 900 crore for DA of employees and nearly Rs.129 crore for (migrants non working ) . It has also been alleged that some Kashmiri employees of public sector after retirement have managed registration as migrants and are getting relief ( including cash ) where as other retired of the PSUs who do not have pension are starving. The PSUs that can not be run the Chief Executives appointed by Government must be immediately closed.
It is encouraging that new projects / in hand projects including Fly Overs, Lake on Tawi river, third bridge over river Tawi, Wailoo-Simpur canal , Mughal road and the like shall be given special attention in the coming financial years. But the budget speech of Mr. Rather had no special reference to time over run and cost over run of even the time bound projects like the first infrastructure rehabilitation project funded with ADB loan under the guarantee of Central Government that has already over run by one year. For reference the Sidhra Mansar road improvement work that was to be completed ending 2008 as per advice given by Ghulam Nabi Azad is still going on in 2010 ( even the original sanction period of ADB Loan is over since 2009). Over and above the plan outlay of Rs 6000 crore, Rs 1206 crore have been proposed to complete the schemes under Prime Minister’s Re-construction Plan (PMRP). It is good that Rs 118 crore out of PMRP is being kept as State counter part share to enable the Economic Re-construction Agency (ERA) to raise matching loans from the World Bank but immediate third party review with involvement of local voluntary sector would be the need as regards ERA and PMRP.
No doubt Mr. Proposals for a special revolving fund of Rs 10 Crore for setting up self employment units by women through Women Development Corporation (WDC) at a interest rate of 5 to 6 per cent is appreciable. But Mr. Rather must immediately order a review on the working of the WDC so far..
Though the increase of Rs. 200 to 300 proposed in the remuneration of Anganwari helpers and workers is appreciable but the amount should have been more since the present payment level is too less for conceiving that the anganwaries may be working to meet the purpose truly. They have hard and responsible task. As disclosed the number of workers / helper is as large as 57000 and government proposes to open 3000 centers more so otherwise also there is need to get a assessment of the programme conducted through some outside agency at the state level ( even voluntary organizations could be involved )
Mr Rather has proposed to constitute a Committee comprising senior officers of Commercial Taxes, Excise and Finance Department to re-examine various provisions of the law and propose changes. Mr. Rather should also get included in the scope of references the need to pass on the benefits / incentives received by the businessman from the government also to their working class that is in very bad shape..
The Finance Minister has proposed for coming out with a simplified procedure for granting exemption from payment of Entry Tax on earthmoving machines required for execution of works in Centrally Sponsored Schemes /other projects but it would have better had he come out with the system itself. It is too late.
There are still more questions left unattended. On one hand every next day the State leadership keeps on demanding assistance from the center even for salaries of employees (As per the Finance minister there is a resource shortfall of Rs.4200 crore for meeting the wage increase to be paid to government employees due to extension of VIth pay commission . In case the State can not afford why the pay commission has been extended and in case it has been extended there is no justification in not paying due wages. Inview of this the employees frequently go on strikes and the services to the common man are hampered. Finance minister must consider some immediate method for clearing the deferred wages so that the employees do not take the common man to ransom by going on strike every next day).
Rs 2251 crore kept for payment of interest and Rs 959 crore on re-payment of loans ( State is not a business house ).On the other hand the finance minister has disclosed in his speech that the Economy of the State has grown up this year by 10.03 per cent well ahead of country’s 7.5 per cent..Is it true growth? Surprising.
The finance minister did not rule out acceptance of the demand for enhancing the retirement age to 60 years where as the state is facing unemployment problem. There had been suggestions that for government employees retirement age be reduced to 55 yrs and any appointment after that should be on yearly contract basis since the liabilities of the government grow after that. More over J&K has undone the provision of pension for Government employees appointed after Jan 1 2010 therefore all those who would get benefit would be already under pension scheme. Rather Finance Minister need to reconsider continuing pension for government employees in view of the social moral obligation of such services.
Government preparing a vision document and master plan for sustainable tourism for all three regions of
Power sector remained a major cause of worry for the Finance Minister. The Government has kept a provision of Rs 2050 crore for power purchase budget during next financial year as against revenue realisation target of Rs 1055 crore, (This excludes the energy available free of cost ). Simply increasing the tarrif would be no solution. What needs to be looked into seriously is that why even the Hydo power costing so high and why the distribution / costs are unrealistically so high ?.
Hardly one percent increase in sales tax (VAT) deserves appreciation though on paper items like processed food, vegetables, jam, pickles, squash, fruit drinks, all type of yarn, threat, silk yarn, utensils, aluminum and alloys, articles made of roll gold, bed sheet, covers, pillow covers, beedis, bicycles, tricycles, buckets, drugs, carpets, coal, coffee beans, coir products, computer stationery, plastic cup and glasses, edible oil , dry apricots,rectified spirit, adhesive gum, hoardings AC plants, air purifier, coffee machines, arms, ammunition and explosives, machines used in Gyms and health clubs, cables, cement including white cement, bakery items including biscuits, batteries, beds, pillows, quilts, bulldozers, excavators, earthmovers etc would go costlier.
The basic toll tax on goods materials has been increased from Rs.40 to Rs.50 per quintal and this would contribute in inflating the living costs of the fixed income group lower classes, particularly those in the unorganized and private sector. Mr. Rather has targeted a 23 per cent increase in tax revenue collection for 2010-11 and for this he has seen the scope more in better management of the tax collection system and growth in economy instead of imposing additional levies. He deserves support.
Exemptions have been granted on some items of agriculture, horticulture and allied sectors .But inview of acute lack of self generated revenue the exemptions would not make much difference in a budget where a fiscal deficit of Rs 2090 crore for the current year was expected.
Abolition of VAT and toll tax on agricultural tools and implements as well as on pesticides, weedicides and insecticides, fertilisers and fodder, bee hives, bee colonies, solar cookers, solar heaters, solar dryers, solar lantern, solar street lighting etc that are often subsidized also by the government is very wise action. Feni consumed by women during Karva Chouth and the fodder for the cattle would cost less ( may not be cheaper ).The Finance Minister announced continuation of exemption from General Sales Tax (GST) Act for a period of one more year beginning April 1, 2010 on income arising out of room rent by hotels, lodges and guest houses, that needed help.
The Government has set a target of upgrading 2000 water mills and installation of 3000 bio-gas plants during next two years. The Union Ministry for New and Renewable Energy has agreed to provide assistance of Rs 45 crore for implementation of micro hydel projects. It is mere government spending. The subsidized promotion of NCES / NCED has been there for over last more than 3 decades. But so far not even the solar cookers are bought on cost for use by the people. Most of the sales by manufacturers are done under government financed programmes. The Finance Minister must order test evaluation of even agencies like JKEDA for applying corrections and to increase the money use efficiencies of subsidies. People from voluntary sector could be involved.
The Government has kept a provision of Rs 113.80- crore under plan and non-plan for implementation of various schemes falling under Sher-i-Kashmir Employment and Welfare Programme for Youth (SKEWPY) but it has to be time tested. Some prospective beneficiaries have expressed doubts..
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