As J&K spends highest Rs 65,000 cr, Centre to release most of budget in FY beginning

DPCs, DDCs, BDCs to get grants in April start

After Parl nod, funds to start pouring-in

Sanjeev Pargal
JAMMU, Mar 21: In view of highest ever spending worth around Rs 65,000 crore during current financial year, the Central Government is likely to release majority part of the budget for 2021-22 to Jammu and Kashmir, which is expected to get the Rajya Sabha nod in next couple of days, from April 1.
The Finance Department of the Union Territory Government will also place 35 percent of budget at the disposal of District Development Councils (DDCs), District Planning Committees (DPCs), Block Development Councils (BDCs), Head of Departments (HoDs) and others immediately after receiving the Central Government sanction to give pace to development works.
The DPC, DDC and BDCs are likely to be asked to finalize their plan of development works in the month of April itself to avoid any delay in development works.
“There has been highest ever spending of around Rs 65,000 crore in Jammu and Kashmir during current financial year of 2020-21. This was despite COVID pandemic which marred the year bringing works at several projects to halt. The Union Territory had been allotted Rs 1.01 lakh crore worth budget for 2020-21 which, in view of highest spending, has been increased to Rs 1.08 lakh crore,” officials told the Excelsior.
The Centre as well as UT Governments are expecting spending to further go up this fiscal year as the pandemic has subsided and there are good grounds for development. Moreover, the DDCs, BDCs and Panchayats are already in place while the DPCs are expected to be constituted within the next few days after issuance of revised protocol for the DDC chairpersons, vice chairpersons and members.
The Jammu and Kashmir budget was introduced in the Parliament by Finance Minister Nirmala Sitharaman on March 17. It was passed by Lok Sabha the next day and is expected to be cleared by the Rajya Sabha in next couple of days.
“Soon after the budget is passed by the Parliament, the Central Government will release majority part of the budget to Jammu and Kashmir Government. The in-time receipt of the budget will facilitate the UT Government to further release budget to newly elected bodies, HoDs and all other Sectors for timely expenditure on development works including ongoing projects and new works to be taken in hands for next financial year,” the officials said.
While 25 percent expenditure is incurred in every quarter, the Finance Department is likely to release over 35 percent budget for the concerned quarters immediately after receiving approval from the Government of India to ensure that development works don’t suffer.
“There is not going to be any dearth of funds during upcoming financial year of 2021-22 from April 1 as budget of Jammu and Kashmir has been further increased by Rs 7000 crores for next fiscal as compared to current financial year,” the officials said.
The Centrally Sponsored Schemes for Jammu and Kashmir are now being funded at 90:10 in most of the cases. Only few schemes are in the ratio of 80:10, they added.
The District Planning Committees, District Development Councils, Block Development Councils and Panchayats besides the Urban Local Bodies are likely to get the budget at the very beginning of the financial year to set pace for development works.
This is for the first time that the District Planning Committees and District Development Committees will finalize plan of the districts following elections held to the DDCs, which form third tier of the Panchayati Raj System in Jammu and Kashmir.
The DPCs, DDCs and BDCs are likely to be asked to finalize their plan in the month of April itself to start development works at the beginning of financial year itself.
In the budget for 2021-22, Finance Minister Nirmala Sitharaman has kept a provision of Rs 200 crore for 20 newly elected District Development Councils i.e. Rs 10 crore for each DDC and Rs 71.25 crore for 285 Block Development Councils, which comes out at Rs 25 lakh every BDC as ‘Development Fund’.
Sitharaman had also earmarked Rs 30 crore in the budget for establishment of DDC/BDC offices and Rs 1313 crore for Panchayati Raj Institutions (PRIs)/Urban Local Bodies (ULBs) for rural and urban infrastructure besides Rs 80 crore for PRI Security.
The budgetary provision, according to sources, will strengthen all three tiers of the Panchayati Raj Institutions and Urban Local Bodies and boost development at the grass-root levels.