Neeraj Rohmetra
JAMMU, Jan 21: Alarmed over the virtual break down of the State’s financial balance, Governor N N Vohra has sent a detailed communiqué to Union Finance Minister, Arun Jaitley seeking his immediate intervention in the matter.
Official sources told EXCELSIOR, “the letter to the Finance Minister brings up the severe difficulties faced in funding the Annual Plan (2014-15) and the virtual break down of the State’s financial balance”.
“The Governor has also sought an appointment with the Union Finance Minister to apprise him about the existing financial crisis and need for his immediate intervention, to help to enable the State Government to tide over the existing financial crisis”, sources asserted.
Sources said, “the Governor has taken serious note of the state of fiscal affairs after, Planning and Development Secretary BR Sharma and Finance Secretary BB Vyas apprised him about the worsening state of affairs”.
Elaborating over the existing financial crisis, sources said, “the total resources gap of the State had touched an all-time high figure of above Rs 5000 crores and though there are hardly two months left in the existing financial year, there is no word from Union Finance Ministry over the plan finalisation process”.
“The State has sought immediate release of Plan and other funds from the Central Government, which couldn’t be released earlier on one pretext or the other. At the Central level, there was confusion about the fate of Planning Commission and at the State level, the situation got complicated first with the massive floods, imposition of Model Code of Conduct and subsequently, due to lack of Government formation”, sources asserted.
Sources pointed out, “there is virtual breakdown of the State’s financial balance and the resource gap had touched Rs 5000 crores. Developmental activities across the State have come to a grinding halt and the bills worth Rs 2200 crores were pending in various treasuries across the State”, adding, “even as just about two and half months were left for current financial year of 2014-15 to end, the State was yet to receive majority of funds in three sectors of annual plan, PMRP and Centrally Sponsored Schemes. The total amount due for the State in 2014-15 in all three sectors totalled Rs 11900 crores and about 60 per cent funds of the State were pending.”
“The intensity of the financial crunch can be gauged from the fact that the Government was not in a position to clear even the 17 per cent pending Dearness Allowance of Government employees and pensioners for full year of 2014. While Central Government and other States’ employees got 17 per cent DA in 2014, J&K employees didn’t get anything in view of financial crisis”, sources said.
While five to six per cent more DA was likely to be released by the Centre with effect from January 1, 2015, the State was yet to clear two pending instalments of 10 per cent and seven per cent respectively. The Government is only able to release salaries and meet daily expenses of urgent nature.
Source further elaborated, “the cash flows from the internal resources had also dried up in view of the decision of the Government to defer payment of VAT and other taxes due to the natural calamity that hit the State in September last year” adding, “also, funds to the tune of nearly Rs 800 crores had to be diverted for providing relief to flood-affected areas”.
With the whopping liability of over Rs 2200 crore pending in various Treasuries of J&K, the employees and pensioners are facing lot of hardships due to non- payment of their GP Fund and Gratuity bills for the last many months, while several development works have been stalled with the cash crunch in the State.
During current financial year of 2014-15, the Union Government in the absence of any working mechanism in the then Planning Commission had approved Rs 7300 crores worth annual plan, Rs 600 crores under PMRP and Rs 4000 crores for Centrally Sponsored Schemes for Jammu and Kashmir. However, much amount in all three sectors was pending in the absence of any working Government in the State, leading to financial crunch in treasuries and other sectors.
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