Capital, revenue expdt to be jointly finalized
Excelsior Correspondent
JAMMU, Nov 1: The Government has set the process in motion for preparation of budget for next financial year of 2019-20 and asked the Finance Department to carry out comprehensive exercise for it by holding Department-wise meetings soon after re-opening of Civil Secretariat in Jammu, the winter capital of the State, on November 5.
This will be for the first time when capital and revenue expenditure will be discussed in one meeting to be taken by the Finance Department as some of the functions of Planning, Development and Monitoring Department had recently been transferred to the Finance by the State Government. Previously, the revenue and capital expenditure meetings were held separately by Finance and Planning Departments.
Official sources told the Excelsior that the budget exercise will be set into motion by the Finance Department by holding Department-wise meetings after re-opening of the Civil Secretariat offices here. The exercise will be done to ascertain needs of different Government departments for the next financial year of 2019-20.
“The Government wants to be ready with the budget preparations and a final call on whether and when to take Vote-on-Account will be taken by Governor Satya Pal Malik, who happens to be the head of the State in the absence of elected Government in the State,” sources said, adding that preparations will be made for both Revised Estimates for ongoing financial year of 2018-19 and Budgetary Estimates for the next fiscal year of 2019-20.
The Government has to assess requirements of all its Departments for incorporation in the budget. However, meetings with other stakeholders linen business and trade bodies are held in case of full budget presentation, which is generally done by the elected Government. But if the spell of Governor’s rule prolongs, the Governor has the powers to present full budget too.
This time, the Planning Development and Monitoring Department will not be taking any budget-related meeting as its functions have been shifted to the Finance Department. Therefore, both capital and revenue expenditure meetings will be taken by the Finance Department, sources pointed out.
“The Government is confident of completing the budgetary exercise within a month and a decision on taking Vote-on-Account was likely to be taken in December after completion of the exercise for Panchayat elections,” sources said, adding that if no Government is formed in the State by then, the Vote-on-Account will become a necessity. However, if the popular Government is formed, the Legislative Assembly will be revived and the new Government will take charge and decide whether to present full budget or take Vote-on-Account.
As next Lok Sabha elections are due in April-May, the Election Commission was likely to make an announcement of the elections in February, leading to imposition of Model Code of Conduct after which full budget can’t be presented by the State Government.
Powers of the Legislature were now vested with the Governor and he could take `Vote-on-Account’ after getting data from the Finance Department and other concerned Government offices. Taking ‘Vote-on-Account’ for three months or six months remains sole prerogative of the Governor, sources said.
The ‘Vote-on-Account’ comes into effect from April 1 of the upcoming financial year i.e. 2019-20.
“A comprehensive preparation has to be done even for the ‘Vote-on-Account’ as the Governor had to take vote for expenditure of particular amount for three months or six months. Similarly, the Government also has to take vote on Revised Estimates for the current financial year,” sources said, adding the Departments have been asked to brace for the estimated figures for both.
But, according to sources, the Departments could be asked to be “budget-ready” if the need arises.
Few days back, Governor Satya Pal Malik had indicated about holding fresh Assembly elections in the State after Municipal and Panchayat polls. However, even if the Centre decided to hold elections in the State, the exercise can’t be conducted before March-April due to weather conditions and in that case, the possibility arises of simultaneous Assembly and Lok Sabha elections provided that no party come forward to form the coalition Government by then.
In that case also, sources said, the ‘Vote-on-Account’ will be the only option before the present Government.
For current financial year i.e. 2018-19, the previous PDP-BJP coalition Government had presented general budget in second week of January.
Then Finance Minister Dr Haseeb Drabu had presented the budget proposals for 2018-19 in the House, comprising a revenue component of Rs 51,244.72 crore and capital component of Rs 44,422.24 crore, on January 11.
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