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Optimism over J&K Budget

Kashmir Times. Dated: 3/24/2015 2:42:55 PM

Goals set forth for achieving self-reliance in J&K economic well being will be an achievement if realistic targets are achieved in a definite time-frame

The budgetary proposals for the next fiscal 2015-16, the first by PDP-BJP coalition government, presented by the Jammu and Kashmir Finance Minister Haseeb Drabu with the aim of achieving self-reliance so far as revenue collection and spending s concerned can be described as optimistic. It will be very right to observe that if these goals can be achieved under the present economic conditions in J&K when the latter has suffered extensive losses due to devastating floods last September, it will be a big achievement for the state. Moreover, it is also to be seen how the state government can come out of the economic mess of the past one decade when it has suffered extensive losses in terms of infra-structure, income generating units and above all the business districts of Kashmir valley, which are described as the hub of business activity. Despite the fact that the new government will have to work hard in the process of re-evaluating the extent of losses suffered due to floods, which have been estimated to be in excess of Rs 44000 crores. The Finance Minister has very rightly described the assessment of losses as completed in an adhoc and hasty manner and many things have been left out for calculation of the damages caused to infra-structure and income generating units. The process of ensuring payment of insurance amount to the insurers is also likely to take a long time because of the reason that insurance companies do not collect premiums for making good the losses of its clients but to make profits from this exercise. Many a companies are yet to receive payments from the insurance companies despite interventions from the courts and the state government agencies. These payments are a crucial factor for calculating the provisions of revenue collections and spending for the state government. A lot of services have been brought under tax regime, which are likely to pinch the pockets of the consumers at large. Some of them that are used by the rich and influential families are unlikely to affect the common masses. Similarly, hike in VAT and Sales Tax rates by the state government on some of the items imported by the state will definitely impact the prices of some of the commodities which are not produced in the state.
Some skepticism has been expressed on the achievable targets set by the present government for revenue collection for the next year. Attracting investments in power sector for tapping the huge hydel power generation potential is a welcome step but a lot of hard work needs to be done for simultaneously making commitment for these investments when investors are scared of the prevailing situation in J&K. A lot of explanation is also owed by the coalition government when a resource gap of Rs 4336 crores has been left uncovered for the next financial year. So far addressing the concerns of flood survivors, farmers, employees and women, which constitute sensitive groups for any ruling dispensation, the Finance Minister has tried to strike a right chord in the budgetary proposals. Provision of granting financial help to the women on attaining the age of 21 as part of the scheme to promote girl child and address the gender gap is a welcome step. But more than the financial provisions, the state government also needs to focus on improvement of overall peace maintenance so that one area of concern for protection of girl child is also taken care of. Creation of special models for apple and basmati for their enhanced production in J&K is a welcome initiative but this needs to be followed up with concrete action on the ground and should not be allowed such projects to die a premature death as has happened in the past when announcements have been made only to attract the attention of the people. It will be in the fitness of the things to take a holistic look at the entire proposals and see how they can be achieved in the better interest of the state and its people.