Excelsior Correspondent
JAMMU, Apr 3: Jammu and Kashmir’s Gross State Domestic Product (GSDP) growth moderated to 11.18 per cent in 2024-25, down from 12.51 per cent in the previous financial year, though it has remained in the 11-12 per cent range over the past four fiscals, according to the Comptroller and Auditor General (CAG).
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The CAG report on Union Territory Finances for the year 2024-25 was tabled in the legislative Assembly by the Chief Minister Omar Abdullah on Thursday, also showing that Jammu and Kashmir’s share in India’s GDP inched up marginally to 0.79 per cent in the last fiscal, marking a slight uptick compared to the previous fiscal after a phase of stagnation.
The report said over the five-year period from 2020-21 to 2024-25, the size of J&K’s economy has expanded from Rs 1.67 lakh crore to Rs 2.62 lakh crore, marking an overall increase of nearly Rs 95,000 crore and underscoring the gradual strengthening of its economic base.
Per capita income in the UT has also shown consistent improvement, rising from Rs 1,01,645 in 2020-21 to Rs 1,54,826 in 2024-25, although it remained below the national average. The per capita income of J&K was Rs 1,12,898 in 2021-22, Rs 1,23,614 in 2022-23 and Rs 1,40,051 in 2023-24, the CAG said.
The GSDP growth at 2.25 per cent in 2020-21 (Covid Pandemic impact), rising sharply to 12.38 per cent in 2021-22, 11.27 per cent in 2022-23 and 12.51 per cent in 2023-24 before easing to 11.18 per cent in 2024-25, it said.
Jammu and Kashmir’s share in India’s GDP stood at 0.79 per cent in 2024-25 against 0.78 per cent in the previous year. The UT’s share had declined from 0.85 per cent in 2020-21 to 0.80 per cent in 2021-22 and 0.78 per cent by 2022-23 and 2023-24.
The report said the revenue receipts of the UT during 2024-25 increased by 6.12 per cent, mainly due to an increase in Grants-in-Aid from the centre.
However, growth of own tax revenue was 2.5 per cent, the CAG said, adding though UT’s own revenue performance improved, the dependence on central grants-in-aid remains substantial.
Out of Total Expenditure of Rs 82,547.28 crore, the revenue expenditure (85.37 per cent) was substantial, particularly committed costs and subsidies (68.39 per cent of Revenue Expenditure and 58.39 per cent of TE), leaving limited fiscal space for capital investment.
Capital expenditure remained below budgeted levels, reflecting constraints in infrastructure investment, the CAG said, adding the UT was not able to arrest the fiscal deficit within the target levels set in the budget documents.
It said the outstanding liabilities of the UT increased from 8.87 per cent of GSDP in 2020-21 to 17.21 per cent in 2024-25.However, taking into account the liabilities of the erstwhile state, the outstanding liabilities increased to 48.47 per cent of GSDP in 2024-25 which was excluding the off-budget borrowings of Rs 23,197.08 crore, it said.
Besides, the UT government also carried forward undischarged liabilities in respect of Guarantee Redemption Fund (GRF), interest liabilities, Consolidated Sinking Fund (CSF) and pension fund to the tune of Rs 934.02 crore and 1.13 per cent of TE in the FY 2024-25, the report said.
The CAG said the fiscal year also continued to witness a large-scale excess in one revenue-charged section and overall savings in all 36 grants.
Excess expenditure in FY 2024-25, previous financial years and that pertaining to erstwhile State of Jammu and Kashmir requires regularisation by the legislature, the report said.
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