Sanjeev Pargal
JAMMU, June 10: The State Government was expecting at least 25 per cent jump in the award of 14th Finance Commission of India, which was likely to submit its report to the Government of India in October this year.
The 14th Finance Commission award would be applicable from April 1, 2015 for the next five years i.e. till March 31, 2020.
Official sources told the Excelsior that the 14th Finance Commission headed by Dr Y V Reddy, Chairman has dropped enough hints during its meetings with Governor NN Vohra, Chief Minister Omar Abdullah, Finance Minister Abdul Rahim Rather and other State delegations that Jammu and Kashmir could get at least 25 per cent jump in the 14th FC award as compared to 13th FC.
The 13th Finance Commission had given the State Rs 38,200 crores worth award, whose term would be expiring on March 31, 2015. The State Government had then expressed satisfaction over the award, which had liquidated the State’s entire Overdraft with Jammu and Kashmir Bank.
Sources said though the State Government has projected demands worth Rs 53,775 crores before the 14th Finance Commission for next five years beginning April 1, 2015, the Finance Commission has reportedly dropped hints that Jammu and Kashmir being a sensitive border and hilly backward State could get 25 per cent jump as compared to 13th Finance Commission.
The increase in Jammu and Kashmir’s award would be more than other States, which could get 15 to 20 per cent increase over 13th Finance Commission.
A jump of 25 per cent over 13th Finance Commission award for Jammu and Kashmir means that the State could get at least Rs 47,500 crores from the 14th Finance Commission for five years from April 1, 2015. Though the State Government would like entire amount worth Rs 53,775 crores projected before the 14th Finance Commission, which visited Jammu and Kashmir from June 5 to 7, to be granted to the State, it would be satisfied with 25 per cent increase over 13th Finance Commission award.
Sources said the State Government has projected its priorities sectors like health, urban and rural development, construction of roads, power projects and starting new water supply schemes, taking up new hospitals especially in rural areas, special grants for Urban Local Bodies, Panchayats and various other new projects, which it proposed to launch over the next five years when the award of the 14th Finance Commission would start.
Sources said the Government has also sought certain debt relief from the 14th Finance Commission of India. It may be mentioned here that debts of the Jammu and Kashmir Government has constantly been rising and had crossed Rs 50,000 crores.
“The Finance Commission has assured the Government that it would take into account its demand for debt relief to some extent as Jammu and Kashmir has been infested by the militancy for over two and half decades,’’ sources said.
Meanwhile, the 14th Finance Commission was likely to submit its report to the Government of India in October this year. The Commission has covered almost all States with Jammu and Kashmir being third last State visited by it. It would take suggestions of all the State Government before finalizing its recommendations and submitting them to the Union Government in October.
The Government would study the report before implementing award of the 14th Finance Commission in respect of the States from April 1, 2015.
The Finance Commission headed by Dr YV Reddy as Chairman comprised Prof Abhijit Sen, Sushma Nath, Dr M Govinda Rao and Dr Sudhipto Mundle as Members.
The Government of India had mandated the 14th Finance Commission to review the State of the finances, deficit and debt levels of the Union and the States, keeping in view, in particular, the fiscal consolidation roadmap recommended by the 13th Finance Commission, and suggest measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth including suggestions to amend the Fiscal Responsibility Budget Management Acts currently in force and while doing so, the Commission may consider the effect of the receipts and expenditure in the form of grants for creation of capital assets on the deficits; and the Commission shall also consider and recommend incentives and disincentives for States for observing the obligations laid down in the Fiscal Responsibility Budget Management Acts.
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