Sanjeev Pargal
JAMMU, May 29: For second consecutive term, PDP-BJP coalition Government would present separate general and power budgets for financial year of 2016-17, both being reforms and growth oriented aimed at making J&K self-dependent to the best possible extent in terms of economy and electricity, in the State Legislature in Srinagar tomorrow. Though reforms in both the sectors of finances and power were an uphill task, the two Ministers would aim their budget in that direction.
Knowledgeable sources told the Excelsior that the State Government headed by Chief Minister Mehbooba Mufti has decided to go for two separate budgets on finances and power for second consecutive year of the coalition Government. Last year also, Finance Minister Dr Haseeb Drabu had presented two separate budgets de-linking power from the finances and, according to sources, the similar process would be followed by the State Government tomorrow, the budget day in both the Houses of the Legislature.
Both the Ministers-Dr Drabu and Deputy Chief Minister Dr Nirmal Singh, who holds charge of the Power Development Department gave final touches to their budgets late this evening.
Sources said while treading the path of making the budget “reforms and growth oriented”, the Finance Minister was likely to continue focus on unemployed youths, trade and industry, common man, flood rehabilitation victims, Government employees, agriculture and horticulture and other major sectors.
“While zero deficit budget has now become requirement of all the State Governments as they have to match expenditure with revenue, keeping the budget tax free was a tough task,” sources said, adding that the Finance Minister had to tread the path to maintain balance between reforms and keeping the budget tax free and, therefore, nominal increase in some taxes or imposition of new taxes hasn’t been ruled out.
Governor NN Vohra during the Governor’s Rule had taken Vote-on-Account for first three months of the financial year i.e. from April 1 to June 30. The PDP-BJP Government had to get the budget passed from both Houses of the Legislature before June 30.
As far as the separate power budget was concerned, sources said it was likely to focus on three key factors including Generation, Distribution and Transmission. At the same time, the Department would go ahead with reforms especially in increasing metering up to 50 per cent of the total population and increasing revenue to keep the deficit between revenue and power purchase bill to the minimum.
Pointing out that Transmission and Distribution (T&D) losses have been brought down from 64 per cent to 60 per cent, which was quite satisfactory, sources said the Power Budget would now target 50 per cent metering in the entire State to save electricity and increase revenue.
The Power Development Department would shortly go public by issuing bonds in the market to overcome its Rs 7000 crores worth losses on account of power purchase bill, which had accumulated over the years.
“The major focus of the budget would be to provide electricity to the people, electrify un-electrified and de-electrified villages, install meters in maximum possible strength, increase revenue and bring down the losses on account of power purchase bill.
This will be second successive budget of Dr Drabu. He had presented his maiden budget in the State Legislature on March 21, 2015 i.e. within 21 days of the takeover of PDP-BJP coalition Government in the State headed by then Chief Minister late Mufti Mohammad Sayeed.
He was scheduled to present his second budget on January 23 this year as Assembly was scheduled to meet from January 18 but with the death of Mufti Sayeed, the Legislature session was cancelled as PDP-BJP took time to form the Government.
This is for the second time in the past seven years that the general budget is being presented in Srinagar, the summer capital of the State as mostly the budgets are presented in Jammu, the winter capital.
While this time, presentation of the budget in Srinagar was necessitated due to death of Mufti Sayeed followed by delay in formation of next Government by the PDP-BJP, it was in 2009 when NC-Congress coalition Government headed by then Chief Minister Omar Abdullah had taken the charge on January 5, 2009 that then Finance Minister Abdul Rahim Rather had taken Vote-on-Account in the Legislature session in Jammu and then presented full budget in Srinagar in the month of August.
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