Sanjeev Pargal
JAMMU, Apr 28: In what could be a major setback for development and allied activities, Jammu and Kashmir’s revenue expenditure (RE) was expected to touch Rs 28,690 crores during current financial year of 2013-14 constituting 75 per cent expenditure of the total budget, which was to the tune of Rs 38068 crores.
This would leave the capital expenditure (the amount spent on development works and allies activities) at just Rs 9378 crores, the figures compiled by Planning and Finance Departments of the State Government revealed.
The revenue expenditure mainly comprised the expenses of the Government, salaries of Government employees, pensions, payment of two Dearness Allowance (DA) installments to the employees, arrears of third installment of Sixth Pay Commission and allied expenses.
Official sources told the Excelsior that the Planning Commission of India has also asked the State Government to cut revenue expenditure to maximum possible extent so that the State was able to spare more amount on the capital expenditure i.e. development and allied activities.
While the Government had adopted new job recruitment policy under which the newly recruited employees would be paid a meager amount for five years and also switched over to New Pension Schemes (NPS), which would bar the new Government staff from pension, it hasn’t been able to cut its own expenditure i.e. the expenses of Ministers, bureaucrats etc, sources said.
“To comply with the directions of the Planning Commission of India, the Government has initiated certain measures to cut revenue expenditure especially the ever increasing salary and pension bill but it was unable to cut its own expenses drastically in view of security considerations,’’ sources said.
They added that the Planning Commission has also asked the State Government to stop fresh recruitment or otherwise its revenue expenditure would further go up. However, the Government has declined to concede this condition of the Planning Commission but decided to implement new recruitment policy to put less burden on the State exchequer.
The Government has, however, kept budgetary provision for payment of two DA installments to the State Government employees and pensioners and third installment of Sixth Pay Commission arrears, which would be credited to the GPF account of the employees.
The Government, in an agreement with representatives of the employees, had decided to pay them the Sixth Pay Commission arrears in five equal installments in five years. Two installments were paid to the employees in 2011 and 2012 while the third installment would be paid this year.
Sources pointed out that salaries, wages, pension and retirement bill of the State Government stood at 60 per cent of revenue expenditure during 2012-13 and was expected to touch about 75 per cent during current financial year.
According to sources the ever increasing salary and pension bill and power purchase bill would be high on agenda during discussions between top bureaucrats of the State and the Planning Commission in a meeting scheduled between the two sides at New Delhi on May 8.
Sources pointed out that ever increasing revenue expenditure has squeezed the capital expenditure leaving very less amount for developmental activities. The Government has, however, told the Planning Commission that being the under developed State with no major private sector for absorption of unemployed youth, it can’t stop or curtail the Government jobs but would cut the salaries of newly recruited youth for first five years.
The Government has decided that it would be filling nearly 60,000 to 70,000 posts in the Government Departments on fast track basis in the next about one and a half years.
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