Budget compares achievements of previous, present Governments
Qarra’s financial attack on NC
No fresh taxes in 6th zero deficit budget
Govt to bring employment policy in current session
Rebates for industry, trade; de-matting of stamps proposed
Power deficit to go upto Rs 1295 crore next year

By Sanjeev Pargal

JAMMU, Jan 16: Widely dubbed as an "election budget", Finance Minister Tariq Hamid Qarra today presented his second consecutive and coalition Government’s sixth straight budget for financial year 2008-09 worth Rs 18443 crore in the Legislative Assembly proposing no fresh taxes, announcing several incentives for industry, promising an employment policy and declaring 86 per cent development component in next year’s annual plan.

In his exactly an hour long budget speech which include a separate power budget for third straight year, Mr Qarra, keeping an eye on this year’s Assembly elections, clearly made an attempt to score a "political point" over previous National Conference Government by giving a comparison of money spent and generated by present coalition Government and NC Government during their tenures.

This was last budget of present political dispensation and the Finance Minister made every possible effort to take NC to backfoot on economic front by presenting figures of NC Government’s 6 years tenure and present coalition Government’s rule.

"Taking next financial year into account (i.e. full six years of coalition Government), the present dispensation would have spent around Rs 87,000 crore and raised approximately Rs 80,000 crore during its tenure", the Finance Minister said.

Without naming National Conference, he said the previous Government spent only Rs 43,500 crore and earned around Rs 38,000 crore during its six year tenure. This is just about half the amount spent and earned by the present Government, he added.

The State budget has increased from Rs 9000 crore in 2002-03 to Rs 18,400 crore in 2008-09. This is more than double of what we had inherited (from the previous Government), he pointed out.

Giving another political overtone to the budget, Mr Qarra observed: "the seeds of our electoral success have been sown in our six budgets which will see the same coalition present another six budgets in a succession".

Going ahead with his financial attack on arch rival National Conference, the PDP Minister said size of the State plan has increased from Rs 2100 crore in 2002-03 to Rs 5500 crore, again up by more than double. Out of Rs 2100 crore plan that the previous Government implemented, Rs 800 crore were spent on salaries and only Rs 1300 crore on development, which means 40 per cent plan was spent on salaries, a non plan item, he added. However, the present Government has kept Rs 4900 crore out of a total of Rs 5500 crore plan for next financial year on development expenditure, leaving only Rs 600 crore as plan revenue expenditure.

Investment by the State Government in 1997-98 ( an year when NC was in power) was Rs 900 crore. Today, the figure stands at Rs 4900 crore, a five fold increase, the Finance Minister revealed in his budget speech, which was repeatedly interrupted by NC members especially Ali Mohd Sagar and Saifullah Mir, who reminded Mr Qarra that he was speaking in the Assembly and not in the PDP office.

Leader of Opposition and Finance Minister in previous NC Government, Abdul Rahim Rather immediately reacted to Mr Qarra’s statement. Speaking to reporters outside the Assembly, Mr Rather reminded the Finance Minister that plans and other funds are given to States by the Centre. "How it is our fault that we were given lesser funds while previous Government, which has its own party ruling the Centre, was given funds generously"? he questioned.

Mr Qarra, however, didn’t agree with Mr Rather. "This is our talent", he remarked and asked: "why they couldn’t get too much funds"? He said he has presented Government’s success during last five years and compared it with NC’s rule of 6 years. "Did you find self rule in it"? he put a counter question to a reporter who wanted to know his reaction on Mr Rather’s statement that it was a "PDP budget".

He said the previous Government had raised a debt (borrowings) worth Rs 5300 crore to finance expenditure of Rs 43,000 crore while the coalition Government has raised net market borrowing of Rs 8400 crore to finance expenditure of Rs 87,000 crore. "To finance an additional expenditure of Rs 44,000 crore, we have added about Rs 3100 crore of debt liability".

The Finance Minister said the Government has cleaned up fiscal back log that they had inherited from previous Government. "By way of a recitation in 2002-03, there were loans worth Rs 1008 crore that were overdue and had to be regularised. Servicing on Baglihar bonds was not even a part of the budget. We have cleared Baglihar as well as power bonds liability, which were off-budget borrowings. Even this year, we would clear a liability of Rs 668 crore of National Small Savings Fund, a payment due from 2000-01", he added.

Mr Qarra said per capita income of an average persons in the State has increased by Rs 5051 during last five year. In 2003-04, per capita income was Rs 14,848 which will be Rs 19,899 in 2008-09. "This means during our period, per capita income has increased by Rs 5051", he said.

Giving figures of NC Government, he said per capita income increased only by Rs 547 from 1997-98 to 2002-03.

The Finance Minister said plan expenditure was Rs 2218 crore in 2001-02 which had reached a level of Rs 3179 crore last year and was likely to touch Rs 4463 crore this year. Inclusive of Centrally Sponsored Schemes (CSS), capital expenditure, which was around Rs 2100 crore in 2001-02 (the era of National Conference) is likely to touch a level of Rs 5500 crore this year and over Rs 6300 crore next year—an increase of 300 per cent. This indicates performance of coalition Government with regard to tempo of development, he added.

Even on the issue of tax collection, Mr Qarra’s budget speech continued to target National Conference. "From a level of Rs 409 crore as General Sales Tax (GST) in 2001-02 (the last year of NC Government), commercial tax collections last year showed almost a three time increase at Rs 1159 crore. Commercial tax collections during current year showed a buoyancy of 35 per cent and were likely to reach Rs 1480 crore. And, if the same momentum continue, collections next year will touch an all time high level of Rs 1778 crore", he asserted.

Overall tax revenue has been estimated at Rs 2299 crore for current year while for next financial year, tax collections were expected to reach Rs 2666 crore, Mr Qarra said.

"Considering that overall tax collection was Rs 804 crore in 2001-02, overall tax collections have more than doubled during five years and will go up next years by three times", he added.

With Assembly elections due by October this year, the Finance Minister proposed no fresh taxes in the budget. This was sixth straight budget, which was zero deficit budget of the coalition Government. First four budgets of the present Government presented by present Deputy Chief Minister Muzaffar Hussain Baig and two budgets by Mr Qarra were also zero deficit budget with revenue matching with expenditure.

Coming to the rescue of Jammu Central Co-operative Bank (JCCB), headed by Qarra’s party colleague M S Tariq, the Finance Minister proposed a provision of Rs 4 crore for the Bank for next financial year. This year also, a provision of Rs 4 crore had been kept for the Bank.

He kept a provision of Rs 200 crore for payment of DA installment to employees when they become due. He, however, refused to immediately concede the demand for increase in retirement age of Government employees from 58 to 60. In his post budget customary conference, he said such an important decision can be taken by all political parties and only then it can be ratified by the Government. He also kept a provision of Rs 5 lakh to purchase an ambulance for Civil Secretariat employees and another Rs 5 lakh for medicines for Secretariat dispensary.

He told reporters outside that the Government was working on an employment policy which will most likely be tabled in the House during current budget session of Legislature. Unemployment remained a major area of concern, he said. He added that since there was 86 per cent development component in the budget, this will also generate job opportunities.

He proposed de-matting of stamps in a bid to have scientific management of stamps in line with recommendations of Union Minister of Finance. This system is proposed to be adopted in the State during next financial year.

He proposed Rs 18 crore for Police Department to acquire land for locating newly created battalions. A provision of Rs 9 crore was made for the purpose in current year which was subsequently revised to Rs 12 crore.

Mr Qarra proposed to exempt capital goods (directly linked to manufacturing process), imported for substantial capacity expansion by existing industrial units, from levy of additional toll for a period of one year with effect from April 1, 2008. He proposed to designate four treasuries (Pampore and Tankipora in Srinagar and Gandhi Nagar and Saddar in Jammu) as SSI treasuries for fast track clearance of SSI.

He proposed to exempt from entry tax the import of items essential for expansion and modernisation provided such items are not available locally. Saying the Government’s commitment to revival of tourism as a ‘service’ industry has encouraged revival of this sector, he proposed to continue with the existing package over next year.

Jammu and Kashmir Bank will formulate a special package to finance 1000 new vehicles during next financial year. To give impetus to housing sector, J&K Bank will also consider provision of a line of credit to both Development Authorities, under Government guarantee, for development of housing colonies in the capital cities. He also proposed an amnesty in favour of defaulters of passenger tax, which will cover penalty or interest as the case may be.

Mr Qarra proposed deletion of a number of items from negative list. Empty bottles, except all types of glass bottles, will henceforth enjoy exemption. Oil cakes, wheat bran, maize and rice bran will be exempted from additional toll as long as they are imported for manufacture of poultry and cattle feed. He also proposed exclusion of activity of locally extracted and processed marble stones from negative list. He proposed exemption from levy of additional toll on export of basmati rice.

The Finance Minister proposed to continue with placement of paddy, rice, wheat, pulses, flour, atta, maida, suji and besan in zero deficit VAT schedule for one more year from April 1, 2008. He proposed placement of locally handmade carpets, rakhi thread, raw tobacco and bidis in zero per cent VAT schedule. He proposed to place optical goods like spectacles etc along with both hand made and machine made soap in 4 per cent rate schedule under VAT. He proposed levy of one way toll only at Toll Post Lakhanpur on such local vehicles which undertake return journey within 24 hours.

To promote public-private partnership, he proposed to give option to manage one or two ITIs to industrial association of Bari Brahmana, Samba, Lassipora and Rangreth. The Government will give the associations the same amount of money as is budgeted for the ITI.

He said Provident Fund Act will not apply to the enterprises which employ 10 or above workers and not 5 or more employees as was the case presently. Three per cent interest subsidy on working capital given to new industrial units will not be applicable to existing units also for a period of two years. For expo shows, tourism marts, festivals and fairs, organised by Tourism Department to promote tourism, the budgetary provision has been revised from Rs 3 crore to Rs 10 crore this year.

Mr Qarra proposed a provision of Rs 37 crore to provide old age and widow pension in time. He again made a provision of Rs 50 lakh for welfare measures of journalists to raise a housing colony as and when the land become available. He also kept a provision of Rs 50 lakh—Rs 25 lakh each for Jammu and Srinagar Bar for electronic library facilities for better knowledge connectivity of advocates.

"Appropriate upward revision in advertisement tariff to print media will be considered by Information Department in first quarter of next financial year", he said.

The Finance Minister proposed posts of Assistant Commissioners between Commercial Tax Officer (CTO) and Deputy Commissioners for audit assessment of dealers above a particular turnover limit. He also proposed Special Commissioner of Appeals to hear appeals against the orders passed by Assistant Commissioners and Deputy Commissioners. He proposed two technical members in Appellate Tribunal to be posted from KAS cadre. He also proposed additional Commercial Taxes circles.

He proposed constitution of a Committee headed by Finance Secretary for working out modalities for setting up a ‘Single Window Clearance System’ at Lakhanpur before March 31 this year. The Department of Commercial Taxes will be adding another 750 dealers to its list of Green Channel facility, which is already in place at Lakhanpur to which nearly 250 dealers with clean track record have access.

The Finance Minister said total receipts for the year 2008-09 have been estimated at Rs 18,443 crore, of which, Rs 15,316 crore constitute revenue receipts and Rs 3127 crore as capital receipts. The State is likely to receive an amount of Rs 1985 crore as share of Central taxes wile other Central transfers will be of the order of Rs 9525 crore. Estimates for plan assistance including an amount of Rs 1018 crore under PM’s Re-construction Plan, has been kept at Rs 5156 crore as against revised estimates of Rs 4014 crore for 2007-08.

Out of Rs 18,443 crore total expenditure, Rs 12,175 crore would account for non-plan expenditure while project plan expenditure is Rs 5518 crore which includes Rs 1018 crore under Prime Minister’s Re-construction Plan (PMRP). Under Centrally Sponsored Schemes (CSS), the level of expenditure will be Rs 750 crore. In revenue and capital expenditure terms, the expenditure translates into Rs 12,089 crore on revenue account and Rs 6354 crore on capital account.

The Finance Minister said annual plan of the State for next financial year has been fixed at Rs 4500 crore. An outlay of Rs 1018 crore has been projected under PMRP. The Planning Commission has also agreed to continue the dispensation of Power Reforms Grant (PRG) of Rs 1300 crore for next year also. The PC has also assured the State that last year’s balance of Rs 300 crore under PRG will be released shortly.

Revenue and capital outlay, put together, in education sector will go up by 54 per cent. Similarly, the outlay for health will be Rs 266 crore apart from Rs 85 crore under NRHM and Rs 200 crore under PMGSY.

Taking into account an aggregate of Rs 750 crore under CSS, the total plan expenditure is expected to be Rs 6268 crore of which Rs 5541 crore will be capital expenditure. This would be the highest ever level of development expenditure in the State. The off-budget developmental expenditure of Rs 1150 crore will be in addition.

Saying that the plan shall have three sub plans, the Minister asserted that sectoral sub plan will lay emphasis on connectivity and power, which were both Central infrastructure development. This sub-plan will also focus on building capacities in health and education sectors. The operational sub plan will aim at completion of ongoing works.

Mr Qarra said total receipts during current year are estimated at Rs 17,354 crore against budgetary estimates of Rs 16,267 crore. Rs 13,901 crore have been estimated as revenue receipts and Rs 3453 crore as capital receipts. Receipt on Capital Account, budgeted at Rs 1441 crore, are likely to go upto Rs 2298 crore. While market borrowings will be up by Rs 1200 crore, share in small savings will be down by Rs 400 crore. Against a total projected expenditure of Rs 16,267 crore, revised estimates of expenditure for current year are assessed at Rs 17,354 crore. The Non-Plan Revenue Expenditure is estimated to increase by Rs 1459 crore. In revenue and capital expenditure terms, the total expenditure translated into Rs 11,855 crore on revenue account and Rs 5499 crore on capital account.

He said the State Government is in principle agreeable to implementation of Vaidyanathan Committee on recapitalisation of Cooperative Credit Institutions, particularly Primary Agriculture Cooperative Societies. A provision of Rs 4 crore had been made in the current budget. A further provision of Rs 4 crore is being proposed during 2008-09 for support to cooperative sector, he added.

The Finance Minister said that the State Government has approved ‘Aam Aadmi Bima Yojna’ (AABY) for landless rural households for implementation, which will come into effect from April 1, 2008. He said a health care insurance scheme for artisans and craftsmen on the line of scheme applicable to Government employees will be worked out.

With the State set to get Rs 1300 crore for Power Reform Grant (PRG) for third year as part of Rs 3900 crore Central assistance for power, Mr Qarra presented a separate power budget.

Mr Qarra said a fresh tripartite Memorandum of Understanding (MoU) has been drafted in consultation with Planning Commission by the PDD for second year of reform programmes. The MoU is likely to be signed shortly by the Planning Commission. The MoU will entitle the State Government to release of PRG of Rs 1300 crore for current year in two installments of Rs 650 crore each, the first one flowing soon after signing of the document.

He said the power deficit, budgeted at Rs 1231 crore for current year, is more estimated to be Rs 1282 crore. Power deficit for next year has been estimated at Rs 1295 crore with revenue recovery expected to increase by 17.5 per cent over current year’s revised estimates as per present tariff order.

While requirement of energy during current year was estimated at 8684 MUs, it was likely to be around 9039 MUs in next financial year. Cost of power purchase is, therefore, estimated at Rs 1781 crore during current year and Rs 1899 crore for next year.

Amount of power receipts till December 2007 i.e. for nine months of current financial years, stands at Rs 381 crore, almost double than Rs 195 crore during corresponding period of last financial year. Average revenue realisation per unit has improved by 67 per cent as compared to last year.

The Finance Minister said improvement in revenue realisation has come not only due to tariff hike but also due to increased level of metering, frequent inspections, computerised billing and improved collection efficiency. Power revenue, which was 24.31 per cent of bulk power purchased cost in 2005-06 has gone upto 29.47 per cent and was expected to improve further.

Mr Qarra, however, admitted that Transmission and Distribution losses have shown no or little improvement.

The Finance Minister said that 390 mw Dulhasti power project has been commissioned resulting in additional 47 mw free power to the State. He added that 450 mw Baglihar Phase-I project was nearing completion and scheduled to be commissioned by the middle of 2008. He said 450 mw Baglihar Phase-II, Sawlakote-I and II, Kirthai-I, Kuru, Kawar, Ratle on Chenab basins, new Ganderbal project on Sindh and Hanu project on Indus river with a total capacity of 3796 mw would be taken up for execution in 11th plan.

Replying to queries at post budget press conference, the Finance Minister said Mr Rather’s claim that Rs 500 crore worth bills were pending with the treasuries was not a "big issue" as the State was yet to receive Rs 1600 crore from the Centre which were expected any time and "we will pay off the bills".

On increase in revenue expenditure, he said pensions remained a matter of concern as far as revenue expenditure was concerned but the Government was trying to get it down.

Budget — Highlights

* Sixth consecutive zero deficit budget

* No new taxes introduced

* Total budget worth Rs 18,443 crore

* 86 per cent development component in budget

* No mention of employment policy

* Qarra, however, says policy will be announced soon

* Budget shows Rs 87,000 cr expenditure by coalition in 6 years

* Rs 80,000 crore raised during 6 year tenure of Govt

* Per capita income up by Rs 5051 in 5 years

* No mention of Overdrafts from J&K Bank in budget

* Overdrafts reported to be over Rs 1900 crore

* Commercial tax collections at Rs 409 crore

* Overall tax revenue estimated at Rs 2666 crore

* JCCB to get Rs 4 crore support

* Rs 200 cr for DA to employees

* Govt says no to increase in retirement age

* Ambulance for Civil Secretariat employees

* De-matting of stamps proposed

* Police to get Rs 19 cr for new battalions

* Capital goods exempted from additional toll

* 4 treasuries to be designated as SSI

* J&K Bank to finance 1000 new vehicles

* Amnesty for defaulters of passenger tax

* Several items to be deleted from negative list

* Raw tobacco, bidis in zero pc VAT schedule

* One way toll at Lakhanpur for 24 hour journey

* Industrial associations to manage ITIs

* PF Act to apply for above 10 employees

* Rs 50 lakh each for journalists, advocates

* Advertisement tariff to go up

* New posts of ACs proposed

* Panel for Single Window System at Lakhanpur

* Govt to implement Vaidyanathan report on Co-op institutions

* Annual plan outlay up from Rs 4850 cr in 2007-08 to Rs 5518 cr

* Power revenue collections to be Rs 781 crore in 2007-08

* Power revenue to be all time high at Rs 922 cr in 2008-09

* Power purchase outgo to increase by Rs 122 cr in 2008-09

* Non-plan salary bill to go up by Rs 392 cr in 2008-09

* Pension bill to come down by Rs 100 cr to Rs 950 cr in 2008-09

* Rs 20 cr for re-structuring loss making PSUs

* Urban local bodies to receive Rs 148 cr

* Provision under Militia Relief increase by Rs 2 cr in 2008-09

Tackle unemployment: Tarigami
Finance Minister frustrated: Rather

Excelsior Correspondent

JAMMU, Jan 16: National Conference leader and former Finance Minister Abdul Rahim Rather today said Finance Minister Tariq Hamid Qarra’s budget speech in which he attacked previous National Conference Government for alleged poor performance indicated his "frustration".

"No where you will see a Finance Minister starting his speech from attack on the Opposition. Left with no arguments, he straightway started a fight with National Conference", Mr Rather said in his reaction to the budget before mediapersons this afternoon.

"It’s unprecedented in history of the Legislature that a Finance Minister blamed previous Government for his failure", he said describing the budget as "unrealistic, presumptive, anti-farmers, anti-workers, anti-unemployeds and good for Opposition in the election year".

Asserting that he will post-mortem the budget word by word during debate in the Assembly, the Leader of Opposition said "ghost of giving zero deficit budget" has created many problems for people of the State.

"Rs 500 crore worth bills were pending in treasuries. There was no salary for employees, no payment for contractors. Even the Government employees were not getting their own GP Fund", the former Finance Minister said and questioned that "how under such circumstances a budget can be called as a zero deficit budget"?

He regretted that there was nothing in the budget about agriculture despite the fact that 75 per cent population in the State was dependent on agriculture. There was not a single word on unemployment, he said.

Mr Rather said Mr Qarra should have explained what the State has achieved from Rs 87,000 crore spendings during five years. He added that Planning Minister Muzaffar Hussain Baig has admitted that upto November this year only 35 per cent funds have been incurred. The Government will just rush through the funds in February-March, he alleged.

He also voiced concern over the employees of PSUs, who have not been paid salary and COLA.

The NC leader reiterated his opposition to Government move to appoint political persons as chairmen and vice chairmen to Corporations saying this "amounted to political corruption".

CPM leader Mohd Yusuf Tarigami said the Government has not addressed areas of concern in the budget. "We were hoping a balance sheet as this was last budget of present political dispensation", he asserted.

"Re-structuring of economy should have been focus of the budget, which is not the case", he regretted.

Noting that unemployment has reached ‘alarming heights’, Mr Tarigami said the Government has taken no concrete steps to tackle the menace except for announcing Committees after Committees. Also, he said, there was no word in the budget about rehabilitation of the victims of violence.

"People have been fed up with slogans and it was not time to act", he said.

He quoted a couple to sum up the budget "Pahle Aati Thi Haley Dil Pay Hansi, Aab Naheen Aati".

House proceedings paralysed over PHE schemes, wages
NC members storm well, stage dharna

By Mohinder Verma

JAMMU, Jan 16: Disparity with the constituencies represented by the Opposition MLAs in sanctioning of Public Health Engineering (PHE) schemes and denial of minimum wages to the Community Participation workers of Jammu region today paralyzed the proceedings in the Lower House with National Conference (NC) members staging dharna in the well of the House amidst massive sloganeering against the coalition Government.

The massive protest by Opposition members and also by members of the ruling Coalition over alleged hiding of information by the Government forced the Speaker to defer both the questions.

The wild protest by the National Conference MLAs began when written reply of the Minister of State for PHE Dr Ramesh Sharma to the question of NC’s Mir Saifullah revealed glaring discrimination with the constituencies of Opposition members in sanctioning PHE schemes and release of funds.

"Speaker Sir, details about the Rafiabad, constituency of PHE Minister have not been mentioned in the reply", Mir Saifullah shouted and alleged that only the constituencies of influential Ministers and PDP Members were receiving benefits of PHE schemes.

Amidst shouting of slogans against the Government, all the NC members left their seats in protest while Mir Saifullah, Kafeel-ur-Rehman, Sharif-ud-Din Shariq and Qaiser Jamsheed Lone trooped into the well of the House.

"The Government exchequer is not for the Ministers and PDP MLAs but for the people", they said while requesting the Chair to defer the question for want of inadequate information. As there was no response from the Chair, these MLAs staged dharna in the well of the House.

Leader of the Opposition Abdul Rahim Rather said that Government cannot hide information from the House and there should be uniformity in sanctioning of schemes and release of funds. He subscribed the allegations of Mir Saifullah that crores of rupees were being released in the constituencies of PDP MLAs at the cost of constituencies of National Conference.

As the pandemonium continued to prevail in the House, the Speaker deferred the question leading to restoration of the order in the House.

Even earlier the House witnessed pandemonium when Minister of State for PHE Dr Ramesh Sharma, in reply to the question of Congress Member Raman Bhalla stated that disparity with the community participation workers and need based workers in the wages could not be removed for want of Rs 47 crore.

The statement of the Minister created protest by the Members of the ruling coalition with Raman Bhalla pointing out that whenever the issue was raised on the floor of House only assurances were given by the Government instead of removing the disparity.

"There is no ground to deny minimum wages to these workers as their nature of job is equavalent to those of daily wagers and casual labourers engaged in the PHE Department", he said and wanted categoric reply from the Government for removal of disparity.

Joining Mr Bhalla in grilling the Government, another Congress Member Yogesh Sawhney said "even Chief Minister had assured to remove this disparity but no action has been taken on the CM’s instructions so far", adding "this is a serious issue and Minister should inform the House about the time-frame for removing this disparity".

Mr Sawhney became more angry when Minister of State for PHE could not give constituency wise number of casual labourers engaged by the PHE Department during the last two years. "Speaker Sir this question should be deferred as Minister has failed to give satisfactory reply", he shouted.

NC’s Ali Mohammad Sagar also joined ruling Coalition MLAs in grilling the Government over the issue of ‘un-prepared Ministers’ and said "the question is House’s property. Either Speaker should direct the Minister to give the reply or defer the question".

National Panthers Party (NPP) remarked: "The failure of Minister to give satisfactory reply is violation of Members’ privilege. Moreover, Government is justifying the regional imbalance at the cost of Rs 47 crore".

Coming to the rescue of colleague, Minister for Health and Medical Education Mangat Ram Sharma said that the Planning and Finance Department will be requested to release the funds to ensure uniformity in the wages. But he was immediately countered by NPP’s Balwant Singh Mankotia, who shouted "Kal CM Sahib Aayenge Aur Kahenge Ki Pandit Ji Ney Waise Hi Keh Diya Tha Kyonki Dilimitation Ke Masle Par Bhi Aisa Hi Hua Tha".

Finding an issue to grill the Government, all the members of National Conference left their seats and started alleging that crores of rupees are being sanctioned in the constituencies of ruling MLAs while constituencies represented by the Opposition parties are being discriminated against in the PHE schemes.

"The PHE Minister engaged workers from his constituency and deputed them in the constituencies of Opposition members", NC’s Sharif-ud-Din Shariq said amidst shouting of slogans—"PHE Wazir Se Isteefa Lo", "PHE Mein Dhandliyon Ki Enquiry Karo", "Na-Insafiyan Bandh Karo".

Finding dilution of issue of Jammu’s community participation workers, NPP’s Balwant Singh Mankotia, Independent MLA Ashwani Sharma and BJP’s Jugal Kishore started shouting "Jammu Ke Saath Insaf Karo" and "Daily Wagers Ke Saath Insaf Karo".

As the pandemonium continued in the House, Speaker deferred the question about constituency wise details with the remarks: "Government should increase the wages of community participation workers".

Noisy scenes in Upper House
Govt to remove encroachments from Bathindi, Sunjwan

By Gopal Sharma

JAMMU, Jan 16: Noisy scenes and clashes between the National Conference and PDP members were witnessed in the Upper House today, followed by the outburst of the Minister for Forest and Environment, Qazi Mohd Afzal that entire forest land encroached upon at Bathindi and Sunjwan with the help of land-mafia will be got vacated.

"Mein Sara Najaiz Kabza Janglat ki Zamin Se Hata Ke Hi Rahunga. Maine Chief Minister Se Bhi Bathindi Aur Sunjwan Ke Baray Mein Baat Ki Hai. Insha Allah, Hum Bahut Jald Action Lene Ja Rahe Hain," Mr Qazi maintained.

The minister’s outburst came amidst heated arguments between the PDP and NC members during Question Hour in the Council. The heat was generated over the issue of encroachment on forest land on the question raised by PDP legislator from Mendhar Murtaza Khan. He sought reply regarding total Forest land encroached upon by some influential and land- mafia men at Chhajla and other parts of Mendhar area.

It was followed by series of supplementaries raised by Mr Murtaza Khan and other Members including M R Qureshi, Devinder Rana, Nizamuddin Bhat who sought action against land mafia and details of encroachments removed in other parts of the State in Jammu and Srinagar.

The minister even had exchange of heated arguments with PDP member Murtaza Khan on poor response to his supplementaries. The minister argued that Forest Department had no sufficient powers to deal with the cases of similar nature. Mr Qureshi and Murtaza claimed that sufficient powers were there with the department and minister should enhance his knowledge.

The remarks of Nizammudin Bhat, however, sparked furore in the House when he suggested NC members to go to the court and file PIL to remove encroachments. Qureshi and Rana were at their feet over the remarks and shouted at Mr Bhat to take his words back. They said Nizamuddin Bhat has brought disgrace to the House by saying this he should take his words back. This House possess sufficient powers. Directions be passed from the Chair over it. The NC members sought intervention of the Chairman in this regard and said Nizamuddin Bhat should beg pardon and also take his words back. The heated arguments continued for some time.

Chairman of the Council, Ghulam Nabi Lone then asked minister what steps have been taken by the Government to deal with the big land mafia and remove encroachments. The minister then claimed that matter has been discussed in detail with the Chief Minister and now action is waited to clear encroachments from forest land in the entire State including Jammu and Srinagar.

Earlier, responding to main question, Mr Qazi said 70 hectare of forest land was under encroachment in Mendhar and the eviction proceedings have been initiated. Eviction orders in respect of 71 cases of Forest land covering 66 hac at Chhajla have been issued by DFO Poonch.

Budget — Sidelights

* Like previous budget session in January 2007, former Chief Minister and PDP patron Mufti Mohd Sayeed made his first appearance during current session in the Assembly on the day of budget, which was presented by his staunch loyalist, Tariq Hamid Qarra.

* Mufti Sayeed entered the House about five minutes after Mr Qarra had started reading his budget speech at 12.01 pm. Chief Minister Ghulam Nabi Azad came to the Assembly a couple of minutes before Mr Qarra’s speech. The Finance Minister entered the House at 11.55 am and read budget speech in Urdu.

* Both Mr Azad and Mr Sayeed kept on sitting in the Assembly during an hour long budget speech of Mr Qarra. They also inter-acted frequently especially when NC members interrupted Mr Qarra’s speech. During last budget session also, the Mufti had attended the House only on the day of budget. Mr Sayeed had been allotted the seat next to Mr Azad.

* Deputy Chief Minister and former Finance Minister Muzaffar Hussain Baig, Incharge Planning, Law & Parliamentary Affairs and Tourism, who had presented first four budgets of the coalition Government, was conspicuous by his absence in the Assembly during budget presentation.

* NC MLAs and former Ministers Ali Mohd Sagar and Mian Altaf strongly objected to Mr Qarra taking name of the Mufti first and Mr Azad later in his budget speech. This is totally wrong, they remarked and urged Speaker Tara Chand to give his ruling. However, Mr Qarra went ahead with his budget speech. Both Mr Azad and the Mufti were seen inter-acting after the remarks of two NC MLAs.

* "Yeh Konsi Currency Mein Budget Pesh Kar Rahe Hain (in which currency he is presenting budget)", NC MLA Dr Mehboob Beg asked chiding Mr Qarra who had recently favoured a separate currency for Jammu and Kashmir.

* It’s Assembly and not PDP office, Dr Beg and Mr Sagar remarked alleging that Mr Qarra’s budget speech was political.

* "Kahaan Kharch Kiye, Hawa Mein Yaa Zameen Par (where the money was spent, in air or on ground)"? Dr Beg, Mr Sagar and NC MLA from Kupwara Saifullah Mir asked when Mr Qarra referred to expenditure of Rs 87,000 crore by the coalition Government. "Batmaloo Mein Kharch Kiye (the money was spent in Batmaloo)", Saifullah Mir said. Mr Qarra represents Batmaloo in the Assembly.

* Dr Beg charged Mr Qarra with reading party’s manifesto and reminded him of the tag of second most corrupt State given to Jammu and Kashmir by Transparency International.

* The State is in debt trap. There is no salary for employees, Mr Sagar and Dr Beg remarked as Mr Qarra highlighted the Government achievements. Mr Sagar sought tabling of Kundal Commission report in the Assembly saying this will silence the PDP.

* "I know which bureaucrat has given the figures", Mr Sagar said when Mr Qarra compared figures of expenditure and earnings of NC and coalition Government.

* Per capita income has increased for PDP workers only, Dr Beg said when the Finance Minister referred to an increase of about Rs 5000 in per capita income in the State during last five years.

* There is nothing in the budget. CMP (Common Minimum Programme) has not been implemented. Delimitation Commission has not been constituted. The Government is misleading the House, Panthers Party leader Harshdev Singh remarked at fag end of the Finance Minister’s speech and walked-out. He was followed by his party colleague, Balwant Singh Mankotia, who also walked-out of the House.

* In his budget speech, Mr Qarra referred to Deve Gowda and Vajpayee package of one lakh jobs and what not. Those promises made in the air have now been replaced by Prime Minister’s Re-construction Plan (PMRP) on the ground, he said.

* "Is there any mention of self rule in the budget"? Mr Qarra asked in his post budget customary press conference in response to NC leader Abdul Rahim Rather describing it a "PDP budget".

Peerzada not lucky 3rd time

Excelsior Correspondent

JAMMU, Jan 16: Congress Minister Peerzada Mohammad Sayeed has not been lucky third time. He had escaped narrowly from a close public scrutiny on two earlier occasion.

In 1989, a Congress Legislator Ghulam Nabi Nayak had levelled serious charges against Peerzada, then Minister of State for Education, in the House. The Speaker Mirza Abdul Rashid had referred the matter to a House Committee. But before the House Panel could finish its work the Assembly was dissolved in early 1990.

In 2005, Justice R P Sethi-headed State Accountability Commission (SAC) started investigation against Peerzada in the multi crore Panchayat Ghar electrification scam. Justice Sethi had remarked: Peerzada was involved ‘neck-deep’ in the scandal.

Again, before the Commission could finish its probe Justice Sethi was made to quit it. Thus on both the occasion, the power-that-be appeared to have come to Peerzada’s rescue.

On third occasion now, Peerzada had no escape. He became too hot a potato for the Congress and the Government headed by it to hold. He was exposed to the charge of having accepted bribe of Rs 40,000 from a Legislator to do a routine work.

Any takers for Peerzada’s theory of conspiracies against him?

Petrol to go up by Rs 4

NEW DELHI, Jan 16: The Government is likely to hike prices of petrol and diesel by Rs four and Rs two per litre respectively as global crude oil prices continued to surge, hitting the revenues of domestic Oil Marketing Companies (OMCs).

An announcement to this effect is likely to be made by the Government very soon.

Giving a tacit go-ahead for a fuel price hike, the ruling Congress last evening had said that all steps would be taken to minimise the impact on the common man.

"The Congress party wish to put on record its hopes that the Government will take all steps to minimise and soften, to the maximum degree possible, any impact of the global rise in oil prices," AICC spokesman Abishek Manu Singhvi said, in a virtual endorsement of the hike proposal.

Dr Singhvi said the Government should take all reasonable steps within the larger macro economic perspective. "Any decision on the issue should be based on overall national perspective," he said.

He said the entire hike in the international prices of oil should not be passed on to the consumer.

Earlier in the month Petroleum Minister Murli Deora had said hiking retail prices of oil is not the only solution to combat the rising prices of crude oil and the Government was also considering duty cut to deal with the situation.

"We have to find the best solution and we are considering duty cuts to deal with the situation," Mr Deora said.

Mr Deora said the Government has been in touch with all parties on the issue and the Left parties were ready to co-operate with it to find a solution to the problem of surging oil prices.

Petroleum Secretary M S Srinivasan had said prices of petrol and diesel are expected to go up by Rs four and Rs two per litre respectively.

The Government had last increased petrol and diesel prices on June 6, 2006.

With the crude oil prices touching an all-time high, the Government was reluctant to increase the fuel prices because of the Assembly elections in Gujarat and Himachal Pradesh.

The crude oil prices in the international market touched an all time high of 100 dollars-a-barrel on January 3, 2008.

Mr Deora said the matter was of serious concern for the Government and said Group of Ministers (GoM) headed by External Affairs Minister Pranab Mukherjee had already met to take a final call on the fuel prices.

The high-powered GoM was formed by Prime Minister Manmohan Singh late last month which is to report back to the Cabinet.

The other members of the GoM include Defence Minister A K Antony, Finance Minister P Chidambaram, Railway Minister Lalu Prasad, Road Transport, Highways and Shipping Minister T R Baalu, Consumer Affairs Minister Sharad Pawar and the Petroleum Minister.

Petroleum Minister Murli Deora earlier met Finance Minister P Chidambaram to discuss measures to cope with the record crude oil prices, as the country imports over two-thirds of its oil.

The three Government-owned OMCs such as Indian Oil, Bharat Petroleum and Hindustan Petroleum are projected to lose Rs 69,753 crore on sale of petrol, diesel, LPG and PDS kerosene as the Government has not allowed them to raise prices in line with the price of imported crude.

Petrol is being sold at a loss of Rs 8.74 a litre, diesel at Rs 9.92 per litre, kerosene Rs 20.53 a litre and LPG at a loss of Rs 256.35 per cylinder. (UNI)

Kotwal gets addl charge of Secy Home

Excelsior Correspondent

JAMMU, Jan 16: Pawan Kotwal, Secretary to Chief Minister will temporarily hold the additional charge as Secretary to Government, Home Department till further orders.

Mr Kotwal will submit all papers on policy matters and other important administrative issues through the Chief Secretary.

Traffic on highway suspended

Excelsior Correspondent

JAMMU, Jan 16: The vehicular traffic on Jammu-Srinagar National Highway was suspended this evening as major portion of the road had become slippery because of heavy snowfall around Jawahar Tunnel and continuous rainfall on other portions since morning.

Senior Superintendent of Traffic Police, National Highway Danish Rana said that traffic on the highway was suspended at around 5 pm as a precautionary measure, adding the accumulation of snow in certain stretches around Jawahar Tunnel and rainfall on the major stretch of the highway made the road slippery.

He said that about 400 Srinagar-bound passengers and around 600 trucks carrying essential commodities for the Valley were stranded at different places when the traffic on the highway was suspended this evening.

Mr Rana disclosed that throughout the day today passenger vehicles from both sides and heavy vehicles from Srinagar to Jammu were plying smoothly despite rainfall on major portion of the highway.

"Tomorrow, the highway will be thrown open for passenger vehicles from both sides and heavy vehicles from Jammu to Srinagar", the SSP Traffic National Highway said.