Gopal Sharma
JAMMU, Feb 20: Finance Minister Abdul Rahim Rather today said that despite many challenges State Government has managed to present a most balanced and people- friendly budget with no additional burden on the common man while State has managed to generate revenue to the tune of Rs 6700 crore during this year besides meeting the targets set by the Planning Commission for the State.
Replying to the discussion on Budget in the Upper House of the Legislature here today, the Finance Minister said the Coalition Government led by Omar Abdullah when took over, there were several challenges ahead. Overdraft of Rs 2300 crore and implementation of 6th Pay Commission and providing arrears worth Rs 4300 crore to the employees were the major challenges for which the Centre also refused to help. There was a grave fiscal indiscipline inherited and for that some remedial measures were must. But the Government with its wisdom, vision and effective fiscal management, steered the State out of these challenges.
Giving figures, Mr Rather said in the year 2008-09, the Government generated tax revenue of Rs 2683 crore from its own resources while within last five years, Government has achieved the record revenue recovery of Rs 6700 crore ( in 2013-14), which is two and half times more. It is unprecedented and the Finance Commission and the Planning Commission have lauded the efforts of State Government. They are closely monitoring the fiscal management of all the States and have fixed targets for all. He further claimed that State’s tax revenue is estimated to reach Rs 7500 crore during the next fiscal year and the annual growth rate comes out to be nearly 30 % which is a record performance by any standards. Similarly, the State’s non tax revenue has also shown impressive growth. In comparison to the total non-tax revenue collection of Rs 837 crore made during the year 2008-09, the last year’s actual realization was to the tune of Rs 2160 crore.
Sounding a note of caution for the tax defaulters, the Finance Minister declared that no amnesty would be granted to the tax defaulters as it may cause heart burns among the honest and regular tax payers and Government in future is not going to oblige the tax defaulters. Whosoever is influential or big, he has to pay the tax as per rules of the State, he maintained.
Mr Rather further pointed out that State has managed to reduce its expenditure from 2008-09 onwards and went on doing so till this year. Only in the year 2012-13, it got Rs 1686 crore less share of taxes from the Central Government. It also managed to save Rs 215 crore. State’s GDC ratio is better than the national average at current rate. Its per capita income is 72188 crore while it was Rs 30212 crore in 2008-09. It has shown growth rate of 5.88 % crore while national average is below 5 per cent ( 4.8 %). He disclosed that the fiscal deficit has now come down to 3.91 % during the last fiscal year as against the target of 4.2 % and it has been well with the limits prescribed the by the 13th Finance Commission.
Referring to the whopping salary bill of the employees, Rather said the salary and pension bill the employees has increased from Rs 5925 crore in 2008-09 to Rs 15,500 crore during the current fiscal year and is estimated to further increase to 18,500 crore during the next year.
Taking serious note of the works executed by various agencies without inviting tenders and following codal formalities, Rather said stringent corrective measures would be taken to check this trend. He said officers found involved in this practice shall have to face the consequences. He further assured the House that State’s special status under the Union Constitution shall be safeguarded while implementing proposed Goods and Services Tax (GST) regime at the nation level.
Responding to an observation, Mr. Rather said no old bill is pending for payment in any Government Treasury of the State and the schedule of Bill Payment in treasuries is being monitored on daily basis. He said that third installment on account of the 6th Pay Commission arrears to the pensioners were pending for want of reconciliation work, would be paid shortly. He said the element of accountability and transparency in treasuries has increased and stringent action is taken against defaulting Treasury Officers if any violation of instructions of the Finance Department comes to notice. He said all the treasuries of State are being computerized in a phased manner to provide on- line facilities to the people and to reduce peoples direct interface with the employees adding that Civil Secretariat Treasury and Saddar Treasuries at Srinagar and Jammu have already been fully computerized. He said 59000 Daily Wagers have already been regularized who have completed 7 years of their services upto 1994. Similarly the legislation made for regularization of Contractual employees is another land mark and first of its kind initiative in the country, taken by the Coalition Government.
Mr. Rather expressed concern over the reports that some development works have been done without calling tenders and without following Codel formalities, adding that stringent corrective measures shall have to be taken to check this trend. “Officers found involved in this wrong practice shall have to face its consequences,” Mr. Rather said
Mr. Rather said that the State’s special status under the Union Constitution shall be safeguarded while implementing proposed Goods and Services Tax (GST) regime at the national level whenever such a decision is taken. He said GST is a latest tax reform through which Centre envisages to subsume all the tax in a single structure adding that J&K is also a strong votary to this new tax reform without tempering its constitutional rights.
Earlier, speaking on the budget Aga Syed Ahmad Rizvi complimented the Finance Minister on presenting a pro people budget. Appreciated the decision of creating new administrative units by the Government, he said it will benefit the people including people of Ladakh region. He said, the recent announcement of new Medical Colleges is a welcome step, however, Leh and Kargil which remain cut off for many months from rest of the State should also be provided new Medical and Engineering Colleges.
Devender Singh Rana while complimenting the Finance Minister for having presented a progressive, forward looking and growth oriented Budget, said that Mr Rather has shown prudence in financial management amidst Global and National slowdown. He said the Coalition Government under the leadership of Chief Minister Omar Abdullah has been able to create a suitable eco-system where peace and growth has taken root.
Mr Rana mentioned that despite difficult circumstances, the Finance Minister has done a commendable job adding that performance under VAT, Revenue generation, monitoring and reforms is clear to see. He, however, opposed any amnesty to be given to VAT defaulters besides asking for curbing the Power deficit. He also called for some relief to BPL Families in case of electricity Tariff besides enhancement in Pension of War Widows and Old Aged Persons under various schemes.
Dr Bashir Ahmed Veeri appreciated the Finance Minister for presenting his successive 6th people friendly and growth oriented budget. He said massive infrastructural development across all major sectors has taken place in the State and economy is on sound footing. He, however, called for energy auditing system to be introduced besides promoting Energy Savers and phasing out traditional bulbs. He also drew attention towards the need for reforms in the Electricity Transmission and Distribution System.
Syed Mohammad Rafiq Shah while participating in the budget discussion welcomed the budget proposals presented by the Finance Minister. He said the rich natural resources of the State need to be properly utilised and exploited for the benefit of the people besides Government should look into wider avenues to provide skill to the youth of the State and make them employable. He also called for special provisions for upliftment of Gujjar Bakerwal and Pahari sections of the Society.
G N Monga while complimenting the Finance Minister for presenting people friendly budget, hailed him for continuing and enhancing budgetary provisions for women’s empowerment in the State. He welcomed the Government initiatives for return of Kashmiri Migrants besides bringing Sarpanchs, Panchs under insurance cover. He also welcomed the initiatives taken by the Government to tap huge Hydel Power Potential available in the State.
Sheikh Gulam Rasool while appreciating Mr Rather, described him as a highly competent Finance Minister, who despite inheriting difficult problems and financial limitations has been able to achieve set targets. He described the budget presented by the Finance Minister as pragmatic and positive. He said the efficiency shown by the Finance Minister in handling the financial matters in the budget are unmatchable. He said power sector has been given due consideration adding future power generation capacity of the State by the new projects will take the State to new heights. He said concerted efforts are also required to be made to bring Hydel Power projects back.
Dharambir Singh Oberoi applauded the Finance Minister for presenting a pro people, tax free budget. He said State has been able to maintain financial discipline and tempo of progress and development. He called for plugging all tax leakages particularly at Lakhanpur.
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