Sanjeev Pargal
JAMMU, May 13: Decks were today cleared for sanction of highest ever annual plan for Jammu and Kashmir as top level bureaucrats of the State gave a detailed briefing to the Planning Commission of India on funding pattern of the plan and measures being taken to cut Government expenditure.
The Planning Commission Advisors and Members, who inter-acted with top officials of the State throughout the day today in three sessions at Yojana Bhawan, New Delhi, were finally satisfied that the State was in a position to fund the highest ever annual plan of Rs 8050 crore for the financial year of 2013-14.
Top official sources told the Excelsior that the Planning Commission Advisors and Members, who inter-acted with the State delegation, issued a long list of Advisories to the State including cut on revenue expenditure and reducing losses on account of electricity and bringing down Transmission and Distribution losses.
The State delegation, which attended the penultimate plan meeting, comprised B R Sharma, Principal Secretary, Planning and Development Department, B B Vyas, Principal Secretary, Finance Department, Arun Kumar Mehta, Principal Secretary, Power Development Department (PDD), Rashim Kashyap, Director, Resources and Institutional Finances and Special Secretary, Finance Department, Shehzada Bilal, Joint Director, Planning and Development Department and Showkat Hussain Mir, Deputy Director, Resources, Finance Department.
Three Advisors and Members from the Planning Commission attended the meeting, which came just a week ahead of the State’s final plan meeting on May 20 in which the annual plan of Jammu and Kashmir for the year 2013-14 would be clinched.
Deputy Chairman Montek Singh Ahluwalia and Chief Minister Omar Abdullah would attend May 20 plan meeting. Finance Minister Abdul Rahim Rather, Planning and Development Minister Ajay Sadhotra, Minister of State for Finance and Planning Dr Manohar Lal Sharma and Economic Advisor to Jammu and Kashmir Government Jalil Ahmad Khan, would accompany Omar.
Sources said in today’s meeting, the Planning Commission Advisors and Members wanted to know from the State officials of Finance and Planning Departments the resources of the State Government for funding the highest ever annual plan of Rs 8050 crore, if the Commission approved it.
The State officials reportedly conveyed that the State was in a position to fund the plan as its tax base was growing rapidly and during last financial year, it had collected over Rs 5500 crore only from Commercial and Sales Tax recording a significant growth in the tax base during past few years.
Sources said the Planning Commission dropped enough indication during the meeting that it would approve Rs 8050 crore worth annual plan for the State for 2013-14 and Rs 600 crore under Prime Minister’s Re-construction Plan (PMRP). This would be 10 per cent hike in the annual plan for current year as compared to the last year, sources said.
During 2012-13, the State had been awarded Rs 7300 crore worth plan and Rs 700 crore under PMRP. However, at the end of financial year, the Centre didn’t release full quota of the State’s funds and withheld a substantial amount.
The State has already staked claim before the Planning Commission for re-validation of lapsed funds of the last year. Chief Minister Omar Abdullah, in his meeting with Mr Ahluwalia and other Central leaders was also likely to rake up the issue of re-validation of last year’s funds.
Sources said the Planning Commission was concerned over ever increasing revenue expenditure of the State, power losses, T&D losses and Government expenditure on some other counts. It categorically asked the State bureaucrats to cut down the revenue expenditure including the Government own expenses and reduce losses on account of power purchase bill.
The Government delegation explained that the State was suffering power losses on account of Indus Water Treaty for which it was required to be compensated. The State had to purchase Rs 4000 crore worth electricity during current financial year, which would take its losses as compared to revenue to around Rs 2500 crore.
The State had repeatedly been asking for power reforms grant but the Centre hasn’t acceded the request on the ground that Rs 1300 crore each worth power reforms grant given to the State for three years including 2006-07, 2007-08 and 2008-09 was not properly utilised.
On cut in revenue expenditure, the State clarified that it was incurring massive amount to pay salary and pension bills to the Government employees. However, it explained that with introduction of new recruitment policy, the revenue expenditure will substantially come down. On cut in Government expenses, the State has explained that it can be done only to some extent keeping in view security consideration of the State.
The State’s annual plan finalisation on May 20 would help it start the developmental works well in time. During last year, the State plan was finalised on July 13.
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