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| Cutting down expenses on wages and power purchase a tall order for J&K | | | If the reports indicating that the union Finance Ministry and the planning commission have asked the Jammu and Kashmir Government to reduce the annual wage bill of the employees and the expenses on purchase of electricity are true it is definitely a tall order for the state Government.There is no doubt that the annual wage bill to the tune of Rs.14500 crores is too high to spare enough from the state sector for the development projects and schemes.Similarly the annual power purchase bill having crossed Rs.2400 crores when the revenue from the power sector ranges between Rs.800 and Rs.900 crores is a major luxury..In fact the state of Jammu and Kashmir presents a picture of a consumer state banking not only on imports of foodgrains,veget ables,milk, mutton, chicken,eggs,edible oils and scores of other items but also on liberal central Government financial support.This way the high rate of expenses continues to cause economic bleed for the Government of India because the centre has been providing over 80 per cent of financial support to the state's plan and non-plan activities.Yes,the centre's direction to Jammu and Kashmir Government to cut down expenses by way of adopting severe austerity measures cannot be disputed.
But are the internal resources and the political situation favourable for adopting severe austerity measures by cutting down expenses on the annual wage bill of the employees and on the power purchase? This is a major question that has bothered successive state Governments during the last 21 years.During these years,when the state remained under the cloud of militancy related activities and violence, the Government,whether in Sringar or in New Delhi,has tried to provide jobs to the educated unemployed youth so that they were not lured to militancy.The civilian strife witnessed in he Kashmir valley during the summer of 2010,in which 120 boys were killed in police action,had convinced the Government that growing unemploymnt problem had created a situation in which the valley had a large force of unemployed youth who resorted to stone pelting against the security forces while demanding better deal.As it may not be possible for the state Government to cut down the annual wage bill when increasing job avenues in the Government sector alone could resolve the problem of unemployment.
As far as central Government's directive to the state Government to reduce expenses in the power sector is concerned it seems to be so tall an order that the state Government may have to think twice before it embarks on austerity measures. On one hand there has been no marked increase in power generation in the state on the other the demand for eletricity in Jammu and Kashmir has been on the increase.This way the growing gap between the demand and the availability forces the state Government to bank on power purchases.On an average power availability ranges between 1500 and 1600 MWs against the demand of 2200 MWs and 2400 MWs.The gap,to some extent,is filled through power purchase from the northern grid and at times it overdraws electricity.Whether the state's expenses on power purchase is Rs.2200 or Rs.2500 crores the centre has to bear the burden.Whether the annual wage bill is Rs.12000 or Rs.14000 crores about 80 per cent of the amount on the wage bill is reimbursed by the centre.The wage bill has further increased following implemntation of the 6th pay commission report.Two things are needed to help the state to cut down its expenses on the wage bill and on power purchase.First,the Government of India has to reserve a suitable quota of jobs in the Armed Forces,paramilitary forces and the central Government depar tments besides the central public sector enterprises for the educated unemployed youth.Secondly the centre needs to raise its annual investment in power generation projects so that Jammu and Kashmir achieved self-sufficiency in electricity.Once it was done it would give the state a chance to reduce its annual expenses on power purchase. |
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