* Z-Morh, Zojila Tunnel get maximum allocation

Neeraj Rohmetra

Jammu, July 6: To fast track the development in the border State, the Union Ministry for Road, Transport and Highways has included several strategic roads in its package worth Rs 20,000 crores, which was cleared about a fortnight back in a high level meeting in New Delhi. The proposal would entail 2-laning and 4-laning of various stretches along the National Highway, which is lifeline of the State.
Besides, the package involved funding of the prestigious Z-Morh and Zojila Tunnel located on 1D. The importance being given to these strategic projects, which would ensure all-weather connectivity to land-locked region can be gauged from the fact that more than 50% of the funds sanctioned in the package would be utilized in these two Tunnel projects.
Official documents available with EXCELSIOR state, “funds worth Rs 9090 crores have been sanctioned for the construction of the prestigious Zojila Tunnel while as Rs 2780 crores of funds have been earmarked for the Z-Morh Tunnel”.
“Central Government is very keen to upgrade the entire road infrastructure in the vicinity of the Line of Actual Control (LAC), in view of tough posturing by China for the past some time. All resources at the disposal of Government will be utilized to ensure timely completion of these projects”, sources asserted.
“Leh is connected to the mainland via the Jammu-Srinagar-Zojila-Kargil-Leh and Manali-Sarchu- Leh route. This is the only life-line, not only for the strategic interest of the Indian Army, but also for the survival of the people of Ladakh and their socio-economic development”, says the document adding, “but these routes remain completely cut-off for six to eleven months during winter (November to May), due to heavy snowfall and avalanche prone areas, on both sides of route”.
The Ministry of Road, Transport and Highways is responsible for the development and maintenance of Jammu-Srinagar-Zojila-Kargil-Leh stretch of National Highway and the implementing agency is Border Roads Organisation (BRO).
“Rs 9090 crores have been allocated for construction of two-lane Zojila Tunnel of 14.083 km length on NH-1D on Built,Operate,Transfer (BOT) annuity basis”, sources explained adding, “Rs 2780 crores have been sanctioned for the construction of 6.50 Kms long two land bi-directionaltunnel on a new alignment between Gagangir and Sonamarg, along the existing NH-1 at Z-Morh”. The construction of the Zojila Tunnel in continuation of Z-Morh Tunnel is necessary in order to establish all weather connectivity to Kargil and Leh.
The official document has also stated that funds have been earmarked for the 4-laning of the Srinagar-Banihal road (Banihal bypass) and Qazigund-Banihal tunnel. About Rs 1987 crore have been sanctioned for the Qazigund to Banihal tunnel portion and Rs 1100 crore are being provided for the 4-laning of 67.76 Km Srinagar- Banihal stretch of the National Highway.
“The four-laning of Qazigud to Banihal section of NH from189.350 Km to 204.700 Km will reduce the distance between Banihal and Srinagar by 16 Kms thus giving a saving of about Rs 27 crores per year on vehicle operation cost for the present day truck traffic only. Besides, this travel time will be also be reduced by about two hours”, sources said adding, “the project would help to make it an all-weather road , which otherwise remains closed for over 50 days in a year with continuous maintenance”.
The document further added that Rs 2159 crore had been allocated to renovate and widen the Chenani to Nashri Section of NH-1A, which includes new alignment from 89Km to 130 km including a 12 km long two-lane tunnel with a parallel escape tunnel. “The reason for high cost on this stretch is the massive investment required for drilling inthe Himalayan range for the tunnel, movement of machinery, ensuring safety of workers both due to terrain and lawn and order situation”, sources said.
“Funds have also been allocated to provide better connectivity between Jammu and Udhampur through 65 Km four-lane highway with about four tunnels at various stretches and Rs 1813.76 crore have been allocated for the completion of this 65 Km stretch”, says the document.
According to the document, “the expansion work on the 36-km Ramban-Banihal and 43-km Ramban-Udhampur stretches will be done under Engineering Procurement and Construction (EPC) model. About Rs 1100 crore have been allocated for Ramban-Banihal stretch while have Rs 1000 crores are being provided for Udhampur-Ramban link on EPC basis”.

Sanjeev Pargal

JAMMU, July 6: The State Government is in for major financial crisis in the upcoming days due to massive delay in approval of its annual plan for current financial year of 2014-15 with own resources of the State exhausting, leading to suffering of developmental works, cash crunch in treasuries and delay in holding of District Development Board (DDB) meetings, which had to approval plan of the districts.
With sword of Model Code of Conduct looming large in next three months, the Government feels that development season of the current year could suffer very badly especially in the elections year when Jammu and Kashmir is scheduled to go to Assembly polls in the months of November-December.
Official sources told the Excelsior that notwithstanding the decision of the Planning and Development Department authorizing the districts for 50 per cent expenditure of plan in both plan and non-plan categories till the district plan was approved in the DDB meetings, the delay in release of the plan, PMRP amount and funds under the Centrally Sponsored Schemes was likely to lead to financial crunch in the State, which could badly affect the development works apart from leading to crisis in the treasuries.
“The Government was trying to run the treasuries with the available resources but they (the resources) would exhaust in next few days until annual plan of the State was approved by then, which appeared distinct possibility,” they said.
According to sources, the Centre Government was likely to take up approval of annual plans and Centrally Sponsored Schemes of various States only after annual budget of the country is approved by the Parliament on or before July 31. Finance Minister Arun Jaitley would present the budget in Lok Sabha on July 10 and it had to secure approval of the Parliament before July 31 as previous UPA-II Government had taken vote-on-account for three months from April 1 to July 31.
As budget session of the Parliament is scheduled to last till August 8, unless extended, the Government of India would take up annual plan of the States after that. The Centre was yet to take a decision on whether to set up the Planning Commission for plan approval or give the responsibility to the Finance Minister by abolishing the Planning Commission.
Sources said delay in approval of the annual plan has also resulted in delay in holding of the DDB meetings for current financial year, which had to approve developmental works to be undertaken by the districts for current financial year and onwards. Though the Government feels that the DDB meetings could be held anytime even without approval of annual plan, as had been the practice in past, yet it hasn’t lined up the meetings so far in the absence of an indication about the current year’s plan.
“Previously the Government used to be sure that annual plan projected by it in the budget would be approved by the Planning Commission as the Commission officials used to drop broad hints to the State officials of Planning and Finance Departments about the plan, PMRP and Centrally Sponsored Schemes. However, during current financial year in the absence of new Planning Commission, the Government has not been able to get any clue about the plan and, therefore, it was indecisive about allocations to be made to the districts,” sources said.
Adding to the worries of the Government is the imposition of Model Code of Conduct for Assembly elections by the Election Commission of India, which was likely to come into effect anytime in the month of September, which would bar the Government from taking up new developmental works.
Sources said Chief Minister Omar Abdullah during his meeting with Finance Minister Arun Jaitley in Srinagar last month had taken up the issue of early approval of annual plan of Jammu and Kashmir to save the State from the financial crunch. However, the Centre has decided that it would take up annual plans of all States after approval of budget by the Parliament. However, it has decided to take up plans of five poll bound States including Jammu and Kashmir, New Delhi, Maharashtra, Haryana and Jharkhand at the earliest.

Avtar Bhat

JAMMU, July 6: With 18,994 pilgrims performing darshan in holy cave on day nine today, the Amarnath yatra has crossed the one lakh mark since the 45 day long pilgrimage started on June 28.
According to an official spokesman, 18,994 pilgrims performed darshan in cave shrine today from both Baltal and Pahalgam tracks. With this, the total number of pilgrims paying obeisance to Icy Lingam so far has touched 1,12,143.
He said two pilgrims died on way to holy cave today. They were identified as K Renuka of APJS Anandnagar Channi and 61 year old J Arumnjam of M R Nagar Chennai, Tamil Nadu. Renuka died near holy cave after performing darshan while Arumnjam died at Brari Marg. With this the death toll in ongoing yatra has mounted 11, spokesman added.
Both the dead bodies have been kept at Sonamarg Hospital and after completion of the formalities they will be handed over to their relatives for last rites, spokesman said.
He said out of 1,12,000 pilgrims who performed darshan in cave shrine, 90,000 pilgrims have returned to the summer capital. Up to 4 pm 7,685 pilgrims had reported at Baltal after performing darshan at cave shrine, he added.
The spokesman said that the rush of pilgrims is picking up day by day and there has been over 100 percent increase in yatris rush after the Pahalgam track was opened for darshan on July 2.
Meanwhile, Minister of Horticulture, Culture, Housing, and Youth Services & Sports, Raman Bhalla today visited Nunwan base camp in Pahalgam and took stock of the facilities and arrangements for yatris.
The Minister interacted with yatris and enquired about the arrangements made at the camp. The yatris expressed their satisfaction over the arrangements. The Minister was accompanied by the senior officers of district administration, Anantnag and police, besides officers on yatra duties.
Meanwhile a fresh batch of 2160 pilgrims left Bhagwati Nagar Yatri Niwas for the holy cave which included 1533 male, 433 female and 145 Sadhus. They left in a cavalcade of 61 vehicles under tight security early this morning.
All the yatris have reached their respective base camps at Pahalgam in South Kashmir district of Anantnag and Manigam in Central Kashmir district of Ganderbal till last reports came in.
As announced yesterday Baba Amarnath & Buda Amarnath Yatri Niyas today started free bus service for Amarnath yatris from Jammu to Pahalgam and Pahalgam to Jammu. The Niyas has decided to start more buses in future also. On the occasion puja was performed by Mahant Maha Mandleswar, Rameshwar Dass Ji who was assisted by Karan Singh Charak a member of the Niyas. The bus was flagged off by Shakeel Beigh DIG Jammu and Kathua Range, Ajit Khajuria president Khajuria Biradri and president of Niyas, Surinder Aggarwal were also present on the occasion. Mr Aggarwal reiterated his demand and urged Shrine Board to open more registration counters.

*Rebates, non-recovery of full amount main concern

Mohinder Verma

JAMMU, July 6: In the much-publicized multi-crore Roshni scam, Public Accounts Committee (PAC) of State Legislature is going to examine tehsil wise details in respect of 14 districts tomorrow with grant of rebates in blatant violation of the legislation and inordinate delay in recovery of full amount in approved cases remaining the areas of main concern.
Official sources told EXCELSIOR that Public Accounts Committee headed by People’s Democratic Party (PDP) MLA, Abdul Haq Khan has called the meeting of Deputy Commissioners of 14 districts—10 of Jammu province and four of Kashmir valley tomorrow morning with the direction to furnish tehsil-wise information of the Roshni Scheme.
The Public Accounts Committee will examine the details to be furnished by the Deputy Commissioners of these districts before passing further necessary directions in order to unravel the irregularities committed during the implementation of the Roshni Scheme by the officers and officials of the Revenue Department and the heads of the Price Determination Committees.
The four districts of Kashmir valley, whose heads would be furnishing details to the House Panel, are those which were covered by the Comptroller and Auditor General during the audit, sources said, adding the Public Accounts Committee has also called Revenue Secretary, both the Divisional Commissioners and Principal Accountant General (PAG), J&K in order to discuss all the aspects related to the multi-crore Roshni scam.
The Deputy Commissioners will explain the House Panel on the tehsil-wise total State land available prior to the enactment of J&K State Land (Vesting of Ownerships to the Occupants) Act and total number of applications received for vesting of ownership and disposed of besides the number of pending applications, sources said.
As per the earlier directions of the House Panel, the Deputy Commissioners of 14 districts will furnish details with regard to the total claims approved/rejected by the committees. “They will inform the Public Accounts Committee about the total amount worked out while determining the market price of the State land under illegal possession and the actual amount received from the applicants”, sources said.
“They will apprise the Committee about the reasons behind inordinate delay in receiving the full amount for the regularized land”, they said, adding “the Deputy Commissioners will also furnish the case-wise details as sought by the House Panel”.
Responding to a question, sources said, “rebates and concessions given to certain illegal occupants of the State land and inordinate delay in recovery of full amount against the total land regularized are the two major concerns of the House Panel as both these acts have caused huge loss to the State exchequer”. The Deputy Commissioners will have to explain their stance on both these grave issues.
“Though the Act doesn’t provide for rebates or concessions yet the Government extended the same to certain illegal occupants of State land under the garb of Rules in order to confer undue benefits”, sources said.
Apart from furnishing information on these issues, the Revenue Department will explain the Committee about the officers, who were given the powers to give concessions to the occupants of State land while conferring ownership rights.

Nishikant Khajuria

LATTI-DUDU, July 6: Despite being at par with neighbouring Himachal Pradesh in scenic natural beauty with additional feature of surrounding places of high religious significance, the picturesque Sudhmahadev-Ramnagar circuit is deprived of required attention and development for becoming a major tourist destination.
Surrounded by lush green deodar forests, this circuit comprises of scenic Latti, Jakhed, Dudu, Shiv Gali, Gandh Top, Kulwanta etc and offers great views of the mountain landscape in the surroundings. The breathtaking views of natural beauty make it worthy of a visit.
Further, there are places of high religious significance such as Gourikund, Sudhmahadev, Mantalai, Vasuki Naag temple, Chandi Mata temple, Paap Nashni Bowli (natural spring), Devak etc where a large number of pilgrimage tourists come in particular seasons of the year.
However, notwithstanding the abundance of natural beauty and historic places of high religious significance, this entire circuit in the Southern region of NH-1A from Chenani upto Ramnagar, lacks facilities like good road connectivity and accommodation etc for the tourism promotion.
The situation can be gauged from the fact that despite the influx of thousands of pilgrims and tourists to Sudhmahadev, not even a toilet facility has been provided in the area by the Government authorities while for night stay of tourist, the only accommodation is a temple Sarai, which remain overcrowded during the summer days, said Sarpanch Pritam Chand.
A Yatri Bhawan was proposed near the Hospital building around three years back but nothing could materialize in this regard for the reasons best known to the concerned authorities while for creating the toilet facility, the authorities are still looking for a suitable space for the last several years, he added.
Situated a few kilometers further away from Sudhmahadev, Mantalai is the place associated with the legend of the marriage of Lord Shiva with the Goddess Parvati.
This temple is also of great archaeological significance as red earthenware and terra cotta figures were discovered at this place.
Besides the Shiv Temple, the major attraction of this place is the grand complex created by Swami Dhirendra Brahmachari, which includes a tree shaped house, an air strip, a hostel, a zoo and a number of other unfinished projects spread over 1008 kanals of land surrounded by Deodar trees.
However, what to say of creating additional facilities for the visitors, the Department of Tourism and more particularly the Patnitop Development Authority, which has been entrusted the job of developing this circuit, are apparently not taking care of even the available infrastructure.
The grand complex created by Swami Dhirendra Brahmachari at Mantalai is turning into ruins day by day with no efforts to save the precious property while the Guest Houses of Tourism Department at Sudhmahadev have turned into ruins and are closed since years.
The State of existing infrastructure can be further gauged from the fact that PDA hut at Dudu near Vasuki Naag temple is virtually lying closed due to no upkeep and maintenance while Tourism hut at Dudu has been occupied by CRPF, informed the locals.
The road link from Chenani to Latti is good but the connectivity to places ahead, like Jakhed, Dudu, Shiv Gali, Gandh Top, etc is very bad though work at several places is going on.
Keeping in view the tourism potential of the area, a number of locals even offered creation of facilities such as Guest Houses and Huts on Public-Private Partnership (PPP) mode but they rued that there was no response from the Government and Tourism Department.
“If the Government develops this circuit by providing good road connectivity and facilities like accommodation, these places can attract a large number of tourists like Himachal Pradesh, said K L Gupta of Latti.
Chairman of the Patnitop Development Authority Dr Raman Kesar admitted that this Sudhmahadev-Ramnagar circuit has the potential at par with Himachal Pradesh in attracting tourist for enjoying natural beauty but the poor road connectivity was the major hurdle in developing these spots.
“However, the PDA is trying its best to create facilities there for the visitors and several mega projects in this regard are in offing. We have developed a park at Gandh Top and a Guest House at Dudu besides two view points while a mega project of Rs 5 crores has been approved for renovation of the Mantalai Ashram,” he said.

Avtar Bhat

Roads known as life line of people are hallmark of development and most important means of communication in a country. The prosperity of any area depends on a good network of roads.
An area sans basic facilities of roads can never be called a developed area as such an area is inaccessible and no development is possible there.
The Billawar Assembly Segment in Kathua district which borders Hiranagar and Samba Segments in West, Basohli and Kathua in South and East, Bani in North East and Udhampur and Jammu in North has a poor road network at present.
Except the Dhar Road which passes through some areas of this hilly terrain Constituency, most of the roads have not been developed in this Constituency and are in dilapidated condition.
It is a shame that after over 65 years of independence the area has no easy accessible road network and people face many hardships in reaching their destinations. The Dayalachak -road which is in such a dilapidated condition that a travel through it to Billawar seems one is passing through medieval India.
This road is totally in a shambles and not even a light motor vehicle can move on it at a speed of over 15 km/hr. By driving in third or fourth gear one may run into the risk of damaging his vehicle in this secluded area where no mechanic is available to help you.
Not to talk of laying the macadam on this road, even the shingle boulders have not been laid in this hilly road for about 20 kilometers.
The condition of Samba, Mansar road is also in no way better. This reveals how the successive Governments in general and coalition in particular have ignored this area. Despite the fact it is represented by Dr Manohar Lal Sharma who had been a Minister in previous coalition and is also a Minister in present Government.
The people in this area besides blaming the Government also curse their luck that they have been living in this remote area and those who are well to do find no alternative except to migrate to other towns of the region like Kathua, Hiranagar, Samba or Capital city of Jammu to avail better facilities.
The people who have been altogether neglected by the Government face host of problems in this Constituency from power and water crisis, to lack of medicare facilities, shortage of doctors and teaching staff in schools. As the area has a poor road network system, the employees posted in the Assembly segment can’t reach their duties in time also and those having approach in corridors of power manage postings of their convenience and do not prefer to work in this secluded area.
People in this hilly belt have many complaints about the public representative saying that he has failed to provide justice to them. In Kakra village which is 10 kilometers away from Dayalachak National Highway, people have a tale of woes to tell. “We face water scarcity and farmers are worried as Karma nullah every year during rainy seasons erodes their land and no one at the helm of affairs listens to the problem”, said Ram Kumar a local resident.
The people face 13 to 14 hours power cut while the power tariff has increased many fold. Earlier the people were getting the power bill for Rs 300 to Rs 400 per year and now they have to pay from Rs 2500 to Rs 3000 and still there is no electricity, said Raj Singh a farmer. When problems are taken to public representative, he gives nothing except assurances, he added.
Tirath Singh a farmer of village Maglore which is 15 kilometres from Dayalachak in Billawar Constituency said over 12 years back Shan to Mangloor bridge was constructed which connected 22 villages in the area but the condition of the road is dilapidated as work on the same has been stopped for unknown reasons.
He said the people of the villages of Dinga Amb, Balot and Garb who are being separated from each other due to Tarnah nullah were demanding Jullah bridge to reduce their distance but the same has not been conceded till date.
He said every year during rains the nullah takes one precious life but no one in the Government takes pains to accept the demand. Ashwani a shopkeeper at Dinga Amb said that Government announced block status for Dinga Amb but the work has not been started till date. No change has been visible in the area during last 12 years except the construction of a passenger shed, he added.
Ravi Abrol, Naib Sarpanch Ding Amb says that the road is the life -line of the people but it is in a dilapidated condition. The MLA gave hand pumps in those areas where they are not needed, he added.
The people in the area say that the High School which was constructed in 1964 has not been upgraded to Higher Secondary level till date while other schools established after than that of Ding Amb were upgraded to 10+2. The people face 12 hour power cut instead of routine eight hour. The village post office established in 1928 has not been upgraded though Ding Amb is a central place in the area, he added.
This small town with a population of over 20,000 people lacks basic facilities of life and there is no bank branch in the area.
The road side encroachments’ is a testimony to the prevailing nexus between officers and land grabbers in the area. The people say that there is lack of staff in schools and dispensaries and in case of any eventuality people are put to hardships.
Thain is another village in Billawar having a population of over 500 people which has no link road and people face problems in taking their luggage to the village as they have to take it on their shoulders, says Janak Singh a farmer of the village.
The people in the area are dependent on agriculture which is subservient to weather. If there is rain the crop can grow in the fields and if it is a dry spell the people can’t expect any thing from their land.
The local tube well has developed a snag and people face water scarcity for a long time. The people fetch water from a tube well which is one km away or drink the contaminated water of a local pond that can expose them to health hazards, says Naseeb Singh a local villager.
Glakh which is a Panchayat having a population of over 3000 people faces water scarcity. The road up to this area is totally in bad condition. There is only one Ayurvedic dispensary and people’s demand regarding establishing of an allopathic dispensary has not been conceded till date, says Ved Parkash Shopkeeper. People have to go to Ramkote hospital which is six kms away from the village, he added.
Criticizing the local MLA, he said he did not come to the expectations of the people. The High School boys and Middle School for Girls have no building. These are old schools and the High School established in 1971-72 has not been upgraded to Plus 2 level, he added.
Kewal Krishan a Government employee of the area while narrating the tale of woes, says people have many grievances against their representative as he failed to solve the problems which compounded during the last 12 years of coalition rule in the State.
He said the people face water and power crisis. Though there is a spring in Nand Kanth village but no efforts are being made to tap this water for supplying to the areas facing water scarcity. The Nand Kant village also does not have a link road and people have to take their luggage on back.
Model village Komla Bardhat which is 1.5 kms from Dhar Road has no link road, says Azad Ali a shopkeeper. In Mandli village which is 50 kms away from Dayalachak people face power and water scarcity. The hand pump in the area is not working for two years now says Anil Gupta a shopkeeper. The hospital in the area has been constructed two years back but has not been inaugurated till date, he adds.
At Sukhrala Mata Baridars have also grievances against the MLA saying the Shrine Board was constituted on his insistence but their interests have been ignored despite the fact that they were dependent on the shrine for centuries together. They said that they were not against the constitution of the Board but their major demands were to be considered as Government policies should be for the welfare of people and not for harming their interests.
However when contacted the MLA Billawar, Dr Manohar Lal who is also Minister of Cooperatives said that prior to his election in 2004 there was zero percent development in his Constituency. He claimed many projects of development were taken up in hand during his tenure and some were completed while on others work is going on. He said even some projects are in tendering stage. He said in Irrigation, Flood control, R&B, Power sector, Education and Health sector lot of work was done by him during his tenure.
Counting one by one, he said Juthana Irrigation scheme in Billawar was completed while all old canals in his Constituency were remodeled. He said in 2004-05 Irrigation Projects worth Rs 26 crore were constructed in his Constituency and irrigation projects worth Rs 40 crore were sent to GoI for approval.
He said Dramni Irrigation scheme was constructed during his tenure while Chak dam amounting to Rs six to seven core was constructed in Pallain village. Irrigation scheme involving of Rs three crore for Pallain Dhanarath is near completion, he added.
He said work is on Dudwala Lift Irrigation scheme and various other schemes. Besides four five ponds under PHE schemes were renovated in the Constituency and bore wells were installed to supplement water supply while 45 more villages were brought under PHE schemes. The Budo Talab has been taken under tourism plan and 18 villages in Billawar Constituency were brought under RBA.
He claimed that 90 percent work on Dayalachak to Dingh Amb road has been completed while 10 percent is to be completed.

Excelsior Correspondent
JAMMU, July 6: The PDP today cleared another list of 11 candidates for the Assembly elections dropping three sitting MLAs and replacing two defeated candidates of 2008 polls.
The list carried the name of PDP patron and former Chief Minister Mufti Mohammad Sayeed, who would contest from Anantnag Assembly seat, which he represents in the present Assembly.
The PDP has dropped three sitting MLAs including Rafiq Khan from Mendhar, Syed Bashir Ahmed from Rajpora and Abdul Razzaq Zawoora from Shopian.
The party also fielded former Jammu and Kashmir Bank chairman Haseeb Drabu from Rajpora seat, Advocate Mohammad Yusuf Bhat from Shopian and Advocate Maroof Khan from Mendhar.
The PDP has retained two times MLA Mohammad Khalil Bandh from Pulwama and fielded Raja Manzoor from Karnah, Mohammad Abass Wani from Gulmarg, Mohammad Iqbal Kazmi from Surankot, Suhabul Haq from Doda, Firdous Tak from Kishtwar and Nazir Ahmad Naikoo from Sopore.
The party had replaced Abdul Khaliq Bhat from Sopore and Ghulam Mohi-ud-Din Sheikh from Gulmarg, who had lost the Assembly election in 2008.

NEW DELHI, July 6:
Finance Minister Arun Jaitley’s maiden budget on Thursday is expected to be a tightrope walk of trying to meet demands for tax sops especially from the middle class and pursuing fiscal prudence to spur investment and growth.
The budget for 2014-15 will be presented by the new BJP-led Government, which rode to power on promises of providing relief to inflation-hit common man, amid falling growth, stagnating investments, high fiscal deficit and external crisis.
There are high hopes from the new Government that it will raise tax slabs and also significantly hike the annual tax exemption limit to provide a much-needed relief to salaried class, which is reeling under the stubbornly high inflation.
For boosting investment, Jaitley is expected to announce tax incentives for industry. As a prelude to the budget, the Government has already extended the excise duty concessions for automobile and consumer durable sectors till December.
The Finance Minister is also expected to take a call on reducing duties on gold import, which were increased last year to check ballooning current account deficit.
He could also provide relief to farmers to help them tide over the impact of deficient monsoon which could lead to fall in agricultural output. The Government may set up a price stabilisation fund, as promised in the BJP’s manifesto.
On the other hand, Jaitley, though not a hard-core economist, is expected to pursue the path of fiscal prudence and not sacrifice it at the altar of populism.
He has already indicated that the Government will have to refrain from mindless populism.
“If you indulge in mindless populism you burden the exchequer…You convert yourself into a high taxation society. It does not work. Therefore, if you have to follow a path of fiscal prudence, (you should) have a certain amount of discipline,” Jaitley had said recently.
Setting the tone, Prime Minister Narendra Modi recently hinted at tough actions in the budget.
“I am well aware that my steps may dent the immense love that the country has given to me. But when my countrymen would realise that these steps would result in getting the financial health back, then I will regain that love.
“If these tough measures were not taken, the financial situation would not improve. We need to take action wherever required. We will have to take tough and bitter financial decisions to put the country on the path to good fiscal health,” Modi recently said in Goa.
Budget may be harsh on smokers as excise duty on cigarettes and tobacco products is expected to go up.
At the same time, the Government may impose higher tax on people earning more than Rs 10 crore annually.
India Inc has already presented its wish list during the customary pre-budget meeting to Jaitley, while the issues of common man have been put forward by various stakeholders including trade unions and other bodies.
In order to provide clarity and improve investor sentiment to foreign investors, there would be reference to retrospective tax amendment in budget.
The foremost problem that the Minister would have to deal with is the retrospective tax amendment issue. The Vodafone case is stuck in arbitration and not much can be done to resolve the impasse as the amount involved is Rs 20,000 crore.
The Modi Government is expected to make a general statement of intent to clarify its position with regard to retrospective tax amendment with a view to ensuring a stable tax regime. This would help both– the Government as well as the investors. (PTI)

Excelsior Correspondent
JAMMU, July 6: BJP today revoked the suspension order of Party MLA from Basohli Jagdish Raj Sapolia who was suspended along with six MLAs of the party in 2011 for reportedly violating the party whip and indulging in cross voting in Legislative Council elections.
According to party sources, the decision to this effect was taken in Union Capital in a meeting of senior party leaders from the State and party National general secretary J P Nadda.
Sources said the decision was taken in view of the loyalty shown by Mr Sapolia to party during the recent Lok Sabha elections by canvassing for BJP candidate as the party got highest margin from Basohli Assembly segment.
Sources said that BJP State chief, Jugal Kishore Sharma who is in Union Capital has formally signed the order of Mr Sapolia and same will be issued tomorrow.
It may be recalled that Mr Sapolia was suspended from the party along with other five MLAs including MLA Raipur Damana, Bharat Bushan, MLA R S Pura, Prof Garu Ram, MLA, Hiranagar, Durga Dass, MLA Bani, Master Lal Chand and MLA, Reasi, Baldev Raj Sharma. While the then Legislative Party leader Prof Chaman Lal Gupta was terminated from basic membership of the party for his anti party activities. However the five MLAs suspension order was revoked early this month while no decision was taken about the revocation of suspension of Mr Sapolia and termination order of Prof Gupta at that time.
However with Mr Sapolia showing loyalty to party during Lok Sabha elections the party leadership had given him a word of revoking his suspension too. But no decision has been taken about Prof Gupta an old stalwart of the party as yet , sources said.
Confirming that the Party has revoked the suspension of Mr Sapolaia, BJP Organizational general secretary Ashok Kaul said that the order will be issued tomorrow.