Govt to present separate budget for Panchayats worth Rs 4500 cr

Sanjeev Pargal
JAMMU, Dec 26: In a rare decision of its kind across the country, the State Government would be presenting a separate budget for Panchayats in Jammu and Kashmir Legislature and do away with the practice of presenting separate power budget as the Power Development Department continued to run under heavy losses.
“The separate Panchayat budget, which would be presented for the first time in history of Jammu and Kashmir, could be to the tune of Rs 4500 crores. It would be presented by Finance Minister Dr Haseeb Drabu immediately after the general budget in the Legislative Assembly on January 11,” official sources told the Excelsior.
Pointing out that total number of Panchayats in Jammu and Kashmir after latest delimitation exercise is 4500, sources said Rs 4500 crore budget would give every Panchayat Rs 1 crore for development works in a year, which was handsome amount and would be in addition to what the elected Panchayats get from other sources like direct funding from the Central Government, Rural Development Department etc.
“The budgetary provision of Rs 4500 crore, would give immense powers to the upcoming elected Panchayats, which were likely to be in place from May next year. As each elected Panchayat would get Rs one crore, the Sarpanchs and Panchs would be able to identify and carry out works in their areas, thus, boosting development of the rural belt,” sources said.
They added that the budgetary support and presentation of separate budget for the Panchayats would also dispel the impression that Panchayats in Jammu and Kashmir lacked powers. In addition, the Government would also devise a comprehensive strategy to give more powers to the elected Panchayats, which, in turn, would lead to development of rural areas.
Describing presentation of separate Panchayat budget along with general budget as “historic”, sources said the new exercise was likely to be made an annual exercise along with the budget presentation and the amount could be increased every year to send a message both within the State as well as to the Central Government that the Jammu and Kashmir Government was serious about strengthening the Panchayati Raj system.
Sources disclosed that separate Panchayat budget for the State could also spell out broader guidelines on more powers to the elected Panchayats, both financial and otherwise.
It may be mentioned here that previous Panchayats, which were elected in June 2011, had completed their five year term in June 2016 without elections being held to Block Development Committees (BDCs) and District Development and Planning Boards (DDPBs), the two other tiers of the Panchayats.
While presenting separate budget for the Panchayats, the Finance Ministry has decided to do away with the exercise of presenting separate power budget, which was going on for past quite some time.
This, according to sources, has been decided as the Power Development Department continued to face heavy losses on account of revenue earning for power supplied to the consumers, Transmission & Distribution losses and various other factors.
The process of presenting separate power budget had been initiated during the tenure of Congress-PDP coalition Government headed by Ghulam Nabi Azad in 2006 as the then Centre Government had given special power grant to Jammu and Kashmir for Rs 1800 crore each for three years. The present Government had also presented separate power budget in 2015, 2016 and 2017.
Only yesterday, Chief Minister Mehbooba Mufti had announced her Government’s decision to hold Panchayat elections in Jammu and Kashmir after more than one and a half years gap as the previously elected Panchayats had ceased to exist in June 2016.
Mehbooba had briefed Governor NN Vohra yesterday that the Government would start Panchayat elections from February 15, 2018.
Central grants running into hundreds of crores of rupees have been blocked in the absence of elected Panchayats in Jammu and Kashmir. Similar is the case with Municipalities, which have also been deprived of Central grants worth several crores as there were no elected Municipalities in the State since March 2010.
Budget session of the Legislature would start on January 2 with Governor’s Address to joint session of the two Houses and Finance Minister Dr Haseeb Drabu is scheduled to present budget in the Assembly on January 11.