Sanjeev Pargal
JAMMU, July 9: The Planning Commission of India (PCI) today approved only Rs 7300 crores annual plan for Jammu and Kashmir for current financial year of 2013-14 rejecting the State proposal for Rs 8050 crores worth plan, a 10 per cent hike over the previous year.
Last year (2012-13) also, the State had been allocated Rs 7300 crores worth plan but had eventually been given only Rs 5800 crores with the Planning Commission imposing a cut of Rs 1500 crores.
The State’s annual plan was finalised in about one and a half hour long meeting between Planning Commission Deputy Chairman Montek Singh Ahluwalia and Chief Minister Omar Abdullah at Yojana Bhawan, the headquarters of the PCI, in New Delhi this afternoon.
In addition, the Planning Commission gave its nod to Rs 600 crore for the State under Prime Minister’s Re-construction Plan (PMRP), about Rs 3500 crores under various Centrally Sponsored Schemes and Rs 710 crores for land acquisition under Prime Minister’s Grameen Sadak Yojana (PMGSY).
Prime Minister Dr Manmohan Singh had announced Rs 710 crores package for the State under PMGSY during his visit to the State on June 25. The Cabinet had later approved the package.
Official sources told the Excelsior that total amount sanctioned by the Centre for Jammu and Kashmir today under annual plan, PMRP, PMGSY package and Centrally Sponsored Schemes stood at Rs 12,110 crores.
For financing the State’s annual plan and the PMRP, apart from Rs 4892 crores of Central Assistance admissible to the State Government, an additional tranche of Central Assistance of Rs 5505 crores will be made available through a combination of Special Plan Assistance (SPA) and Special Central Assistance (SCA).
Sources said Rs 3100 crores under the Centrally Sponsored Schemes for the State were confirmed at this stage but the amount would go up to Rs 3500 crores.
In the plan meeting, Omar was accompanied by Finance Minister Abdul Rahim Rather, Planning Minister Ajay Sadhotra, Minister of State for Finance and Planning Dr Manohar Lal Sharma, Economic Advisor to Government Jalil Khan and Chief Secretary Mohammad Iqbal Khandey.
Though there was no official comment from the State Government on Rs 7300 crores worth annual plan, equal to the amount approved during last financial year, sources said the Government was not satisfied as it stuck to its proposal of Rs 8050 crores worth plan for this year, which it had even mentioned in the annual budget for 2013-14 presented before the Legislature here in March this year.
“The plan would upset the entire budget,” sources said.
They added that after intense negotiations between the J&K Government and the Planning Commission, it was agreed that total Central Plan assistance to the militancy-hit state would be to the tune of Rs 12,110 crores during 2013-14.
“We have approved plan size that is Rs 7,300 crores for Jammu and Kashmir for current financial year of 2013-14. In addition, there is PMRP (Prime Minister’s Reconstruction Plan) of about Rs 600 crores and there will be flow of approximately Rs 3,500 crore under various Centrally Sponsored Schemes. The State would also get Rs 710 crores under the PMGSY”, Mr Ahluwalia said after a meeting with Omar.
J&K’s plan size during 2012-13 also stood at Rs 7,300 crores, which means the State hasn’t been granted any increase in the plan this year.
“We had a very good discussion with Chief Minister and ministerial delegation covering all aspects of development progress in J&K. (Planning Commission) Members were impressed with the fact that in many dimension there has been very very satisfactory progress and we complimented Chief Minister Omar Abdullah for that”, Mr Ahluwalia said.
Omar did not respond to queries from reporters on whether he was satisfied with the plan allocation after he came out of the Yojana Bhawan.
The PMRP amount was, however, the same what the State Government had asked for (Rs 600 crores). The funding under various Centrally Sponsored Schemes (Rs 3000 crores) was slightly less than the State’s expectations but it was all right. However, sources said, what has disturbed and embarrassed the State Government was the Planning Commission’s refusal to approve Rs 8050 crores worth plan, a normal increase of 10 per cent over the previous year.
For the past few years, the State had regularly been getting 10 per cent hike in the annual plan. From Rs 5800 crores in 2010-11, the State had received Rs 6600 crores in 2011-12 and Rs 7300 crores in 2012-13. It had projected Rs 8050 crores for 2013-14 under plan and Rs 600 crores under PMRP. Last year, the State had been approved Rs 700 crores under the PMRP.
In 2012-13 plan, the Planning Commission had imposed a cut of Rs 1500 crores reducing approved plan of Rs 7300 crores to just Rs 5800 crores. Even for 2013-14, the Planning Commission had initially proposed an annual plan of only Rs 5800 crores, leading to differences between the Commission and the State Government and cancellation of plan meetings thrice-May 20, June 2 and July 2.
Sources said the Planning Commission was of the view that the State was not in a position to fund the huge plan of Rs 8050 crores in view of meager resources of its own. It had asked the officers during preliminary plan meetings with the State bureaucrats that the State should increase its own tax base, cut revenue expenditure (which included expenses of the Government, salaries and pension of employees etc), reduce ever increasing deficit between power purchase and revenue generation and take other possible measures to make the State self reliant instead of referring all proposals and schemes to the Centre for funding.
In the last financial year, the Centre had imposed a cut of Rs 2130 crores worth funds on the State including Rs 1500 crores of plan, Rs 210 crores from Share in Central Taxes and Rs 420 crores of PMRP. However, the PMRP funds are non-lapsable.
An official handout said that Omar acknowledged stiff financial constraints of the Central Government and appreciated the support and financial assistance provided by the Union Ministry of Finance and the Planning Commission to meet development requirements of the State. He assured full and proper utilization of plan assistance for delivering mandated developmental outcomes.
Sources said the State had got an inclination of things to come i.e. a less annual plan than proposed in the meeting held between top State bureaucrats and Planning Commission’s Advisors and Members this morning as a prelude to final plan meeting between Montek and Omar. The resource meeting attended among others by Chief Secretary Mohammad Iqbal Khandey, Principal Secretary, Planning and Development, B R Sharma and Principal Secretary, Home, BB Vyas had insisted that the State had resources to fund Rs 8050 crores worth plan.
However, the Planning Commission didn’t accept this argument and suggested certain measures to the State for improving its tax base and taking some austerity measures to cut revenue expenditure.
The resource meeting lasted two years, which was also attended by Administrative Secretaries of few Departments other than the Planning and the Finance.
The State Government had projected Rs 8000 crores worth annual plan and Rs 600 crores under PMRP in its annual budget of 2013-14 presented in the State Legislature in March this year. While the State got exactly the same amount under the PMRP, the Planning Commission has cut its amount by Rs 700 crores in the plan, which would change the budget figures entirely.
In his meeting with Montek Singh Ahluwalia, the Chief Minister made a detailed presentation covering the highlights of various developmental initiatives undertaken by the State Government during the last fiscal (2012-13) and the key priority areas included in current year’s plan.
He hailed the Central Government and Planning Commission for various new developmental initiatives for J&K particularly the extension of industrial package beyond June 2012, in-principle agreement of 90:10 State Share for all Centrally Sponsored Schemes (CSS) and allotment of coal block which will enable the State to meet its power requirement in winter months.
Omar said the year 2012 has been by far the best year in all parameters and had witnessed a 25 per cent decline in violence. He highlighted the positive atmosphere of hope, optimism and harmony obtaining in the State and the need for a sustained focus on developmental efforts to build upon peace dividends.
The Chief Minister briefed the Deputy Chairman about the progress of a number of mega and important projects which have been taken up during the last year. He also shared measures aimed at smart governance in J&K.
He mentioned the efforts being made to rein in the power deficit. He also apprised the Planning Commission of the target of 9000 MW of power generation over the 12th and 13th plan.
Referring to the City Mobility Plans prepared by M/s RITES , Omar sought the assistance of Planning Commission for putting in place Mass and Rapid Transport Systems in the two capital cities.
Sharing the concerns regarding adverse sex ratio in certain parts of J&K, the Chief Minister endorsed the need for effective implementation of Pre-Conception and Pre-Natal Sex Selection/Determination (PCPNDT) Act.
The Planning Commission appreciated the significant achievements made by the State Govt. in health and education sectors and in particular complimented it for putting in place the Juvenile Justice legislation.
The Planning Commission also took note of the State Government’s efforts on Skill Development of youth. The meeting also took stock of measures to step up the pace of implementation of HIMAYAT and UDAAN schemes.
Emphasizing the centrality of agriculture & allied sectors in J&K economy, the State Government sought liberal assistance from Planning Commission for comprehensive assistance for command area development so as to fully utilize the created irrigated potential.
In his intervention, Mr Ahluwalia complimented the Chief Minister for making an extensive presentation on the obtaining development scenario in J&K.
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