While fighting COVID-19 pandemic which shows no signs of abatement and a long drawn battle seems inevitable , measures were needed to be taken side by side to address concerns in respect of the slowdown suffered by the economy. Almost all segments of the economy barring pharmaceuticals and the ones related to essential goods and services of daily use , have suffered severely . The unlocking process of COVID restrictions has given a glimmer of hope but only selectively and that also not reasonably adequately primarily because ‘opening up’ exercise is still incomplete as a precautionary measure . The issue , however, being of utter sensitivity and importance has been attracting the attention of the UT Government of Jammu and Kashmir within its limits and resources constraints. In a fresh move to attempt to tackle the impact of the slowdown of the economy due to the pandemic, the Administrative Council has recently come out with slew of measures aimed at addressing concerns among various stake holders. That is really one good step among possibly a few more to follow, taken by the Government, so as to revive the economy.
Taking a cue from the package of Rs.20 crore announced by the Central Government under ‘Atmanirbhar Bharat Abhiyan’ which focussed sharply on MSMEs, priority sectors and vulnerable segments , the UT Government has accorded sanction to the new relief package. Jammu and Kashmir besides, the targeted sectors under the central package , has other areas and sectors of economy which need similar or even comparatively better package . Tourism and tourism related numerous activities contributing significantly towards the economy of the UT are in pitiable condition . Let there be no mincing of words about the status of availability of resources to make announcement of any relief package workable and a contributor towards reviving of the economy. The UT Government has been struggling due to dwindling revenues against high expectations of expenditures . That is true of most of the states and the UTs besides the Union Government because of near halt of economic activities due to the pandemic . States and UTs have , therefore, been demanding more borrowings which the Union Government has permitted by fixing additional borrowing limits provided certain reforms were carried out immediately thereafter. Could that be done under the given circumstances in Jammu and Kashmir is not difficult although it is a debatable issue .
Technicalities and intricacies of finances and allied matters apart, soft but effective measures could be taken and rightly that has been done by the UT Government by addressing issues of backlog of sales tax and VAT arrears under the relief package by extending the Amnesty Scheme up to October 31, 2020 and filing of re-imbursement claims pertaining to the period January -March 2020 to October 15 and for the next quarter ending June to November 15, 2020. Under the relief package announced on July 17, cushion and relaxations are of the nature of waiving of revenues due to the Government from the industrial units like surcharge levy-able on the fixed charges of all industrial and commercial establishments pertaining to the period March to October 2020 which was to be borne by the UT Government. Likewise, stamp duty on fresh lending by Central Government’s and Jammu and Kashmir Government’s package is proposed to be waived off to reduce the cost of lending. Similarly, sharing interest burden by the Government in respect of operating establishments could be the next instalment of relief package for which Administrative Council has directed the UT Finance Department in consultation with Industries and Commerce Department to come up with a proposal for consideration.
Needless to add, the UT Government has been striving hard to revive the economy in whatever possible way but lot more needs to be done. As regards resources as that is fundamental to granting reliefs, concessions and bailout packages, pragmatic measures shall have to be taken . The revenue shortfall has been phenomenal but the fact is that the Union Government has been extending all help to states and UTs to mitigate the revenue shortfall . Authorised limit of borrowing as permitted by the Reserve Bank of India must be utilised to boost resources position as more and more affected sectors in Jammu and Kashmir would expect some help , bailout package and concessions from the Government to survive and fight the rigours of the economic slowdown due to corona virus pandemic.
Follow our WhatsApp channel
