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| Rather dispels oppn fears, says govt well within 'targets' | | | Early Times Report
Jammu, Mar 10: After a marathon of discussion by the members for four days over Budget , in a bid to remove and dispel the apprehensions on various and dismiss the criticism of opposition as unfounded , J&K Finance Minister A R Rather today asserted that the state was well within targets both in respect of debt and borrowings as also in reducing the fiscal deficit.
Maintaining that the State is moving forward in right direction to minimize the fiscal deficit, as per the guidelines and principles laid down in the J&K Fiscal Responsibility and Budget Management (FRBM) Act, the Minister for Finance and Ladakh Affairs, Mr. Abdul Rahim Rather today forcefully rejected the criticism made by some Legislators during the debate on Budget that the State was falling in a debt trap.
Replying to the debate on budget in the Legislative Assembly today Rather while playing down the apprehensions projected mainly the former Finance Minister and PDP leader Muzaffar Hussain Beig on the front of state falling under debt trap and maintained the present government was on right track while complying with the guidelines under Fiscal Responsibility and Budget Management Act, which suggest how this state could financially viable on various parameters. Taking a dig at PDP Rather said even though the law came into existence during PDP's rule in 2006, they were not able to do anything on this front for two years despite it having been notified .
Quoting figures in support of his arguments the Finance Minister reiterated State has been able to contain the fiscal deficit to 4.2% against the target of 5.3% fixed by 13th Finance Commission which, he said is a matter of satisfaction." This achievements becomes more significant when viewed against implementation of the 6th Pay Commission recommendation and the government decision to pay off the arrears. He said the wage bill including pensions has touched an all time high of Rs 16,140 crore, a phenomenon which is beyond any body's control", he observed. He added that the state's tax revenue has increased by 38% during the current financial year as compared to last fiscal. "As against the revenue of Rs 3480 crore realized last year, the tax revenue during the current year is about to touch Rs 4800 crore marking a quantum jump of over Rs 1300 crore, which is highest ever in the history of the State", Rather added. He said the current year's collection under commercial taxes alone has gone up by Rs 1057 crore which is an increase of 42% over the previous year. The growth rate of tax collection for April to November 2011 of the J&K State was the highest in the country as per the figures which had been complied by the Secretariat of the Empowered Committee of the State Finance Ministers for all States.
Rather said that the GSDP during the current fiscal stands at 6.8% which is nearer to the national level GDP figure of 6.9%. "The growth in GSDP is strictly measured in accordance with the global principles and accepted as a major fiscal indicator, to ascertain the march of economy towards development and progress.
The Finance Minister also discounted the fears expressed by some members that the state's that dependence on Central funds was on increase , Rather said it was not a worrying matter as the funds state is entitled to the funds it getting as per the provisions of the constitution. "J&K like other parts of the Country gets funding from the Centre from out of the divisible pool, which has been guaranteed under Article 268, Art.280 and Art.269 of Constitution of India. He said whatever funding the State receives from the Centre is its right under the Constitutional Scheme", he explained.
He further said the new system with respect to arrangement with Reserve bank of India, things were of mutual advantage of the State Government and the Jammu and Kashmir Bank and also beneficial for the people of the state. Under the new arrangement the State has been able to save interest payment to the extent of about Rs 219 crore so far in the current fiscal. "on the one hand, the J&K Bank made a record profit and declared an all time high dividend of 260% to its share holders. The over draft of Rs 2300 crore repaid to the Bank was re-invested by the Bank and it generated economic activities in the State," the Finance Minister explained. |
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