*Massive protests by NC, MLAs walk-out
Sanjeev Pargal
JAMMU, Mar 24: Finance Minister Dr Haseeb Drabu said today that previous regime (of National Conference-Congress Government) has left liability of Rs 9000 crores and declared that the Government will soon come out with a White Paper on financial position of Jammu and Kashmir, which is being prepared by the independent agencies.
In his 50 minutes reply to debate on the budget in the Legislative Assembly this afternoon, Drabu announced three phased rehabilitation plan for September 2014 flood victims in the State from April 1 as he directly blamed the previous Government of preparing about Rs 44,000 crores worth package very casually and taking no steps to pursue it with the Central Government.
Referring to NC MLA and former Finance Minister Shafi Uri’s speech on budget in which he had blamed Drabu for fiscal problems during 2002-2008 PDP-Congress Government in which he was Economic Advisor of the State, the Finance Minister said he was going to place White Paper in the House on finances and would be happy if the Speaker allots some time for discussion on it.
“I’m coming out with the White Paper. It is being prepared by the independent agencies,” he said.
Making his speech in the absence of main opposition party, the National Conference, whose all members staged walk-out in the House before the Finance Minister’s reply citing lack of time to speak, Drabu said the opposition will not find space to hide if he takes up the financial position of last six years. He was apparently referring to National Conference and Congress.
“We have inherited Rs 9000 crore liability from the previous regime but we will not shed our responsibility,” he said.
Excelsior had exclusively reported earlier that the Government planned to bring White Paper on finances of Jammu and Kashmir in budget session of the Legislature.
Referring to flood rehabilitation package worth Rs 44,000 crores submitted by the previous Government to the Centre, Drabu charged the then Government headed by Omar Abdullah with adopting casual approach not only in preparing the package but even pursuing it with the Centre.
“They (the then Government) just took casual figures from the traders and others and incorporated them in the Special Package. But to speak of others even the former Chief Minister (Omar Abdullah) didn’t pursue it with the Centre. He didn’t meet the Central leaders to follow the package,” he said, adding the present Government has confidence in its ability and it would start three-phased rehabilitation plan for the flood victims from April 1, 2015.
He described three phased rehabilitation plan as restoration of livelihood, business and reduction of liabilities and restoration of houses.
Blunting the opposition’s criticism of his ‘begging bowl’ remark, Drabu said it was former Chief Minister Omar Abdullah who had stated that “he goes to the Centre with a begging bowl to seek grants for the State”.
In his budget speech, Drabu had said that he would not seek any financial assistance or grants from the Centre other than what is provided for in the Constitution of India for all the special category States.
Drabu attacked the opposition for launching a tirade against him for his “begging bowl” comment.
“I said that we would not go with a begging bowl,” he said, adding that it was the then Chief Minister Omar Abdullah who had said in TV interview that “he goes to the Centre with a begging bowl to seek grants for the State”.
He said Jammu and Kashmir enjoys a special status as far as its economy is concerned and there is a need to strengthen its “power to tax”.
He said the Government wanted to take steps to restore dignity of the State in terms of finances by making it self-reliant. He pointed out that out of Rs 11,000 crore Plan last year, Rs 10,000 crore were discretionary grants, which the Constitution didn’t allow. “We are trying that we don’t have to depend on the Centre”.
Referring to National Conference member Devender Rana that doing away with Plan and Non-Plan system was old system and had already been introduced in Punjab and Haryana, Drabu said Jammu and Kashmir is the first State to start it and Punjab and Haryana have not adopted the system so far.
Describing power sector as most “troublesome area” in the State, he said Rs 4336 crores worth gap in budget for 2015-16 can be easily plugged if Rs 4300 crores worth losses on account of power purchase were overcome.
“There will be no need to borrow money not even for special assistance if losses on account of power supply were tackled. Even if we reduce Transmission and Distribution (T&D) losses from 65 per cent to 40 per cent or 20 per cent, the financial losses will go down considerably,” he added.
Congress Legislature Party (CLP) leader Nawang Rigzin Jora interrupted the Finance Minister and wanted to know why he didn’t spend a single penny from out of Rs 3600 crores worth power reforms grant given by the Centre Government for three years to the State (2005 to 2008) when Drabu was the Economic Advisor. Jora pointed out that this entire grant was diverted towards salaries of the Government employees.
Admitting that Rs 3445 crores worth grant received from the Centre then was diverted for salaries of the employees, Drabu said the then Government had promised power reforms but then a movement started and meters were broken.
“We used the grant not to fill our pockets but to pay salary to the employees,” he said and charged Jora (who was Power Minister then) that it was due to his inefficiency that he couldn’t introduce reforms and bring down the T&D losses.
On demand for reduction in Electricity Duty, which was highest (in India) at 22 per cent in the State, Drabu said it will be brought down to 16 per cent if T&D losses came down to 40 per cent and 12 per cent if T&D losses were reduced to 12 per cent.
Describing Lakhanpur as “den of corruption” to justify his budgetary proposal of outsourcing the Toll Plaza, he wondered that even the officers with kidney problems wanted to be posted there. “Is there a hospital at Lakhanpur that even ill officers too want to get posted there”?, he asked and disclosed that within last few days of the Government, he has received 50 recommendations for posting of the officers at Lakhanpur.
He said the regulatory and other powers of Lakhanpur would remain with the Government, it will be only collection that will be outsourced. “There will be an open bid. If we are collecting Rs 400 crores at present, any party, which offers Rs 500 crore bid can take it,” he added and said the business community will get additional facilities through outsourcing as there would be no jams.
On public offering of Power Development Corporation (PDC), he said it would be 15 per cent initially and confined to the state subjects. The earnings through the PDC will be used to pay the power bills, which can change entire power scenario in the State, he asserted.
He said the Government would create pilgrims tourist circuits like Shiv Khori to attract Mata Vaishno Devi ji pilgrims to other places, he admitted that religious tourists can’t be attracted to place of entertainment.
On restructuring of Public Sector Enterprises (PSEs), Drabu said it was necessitated to overcome losses and make them accountable.
“We will bring out the PSEs from the control of their Departments and create two companies for them-one financial and another non-financial holding. I’m sure within the next three years, I will give Rs 50 crores to Rs 100 crores worth dividend from these companies to the Government. Their debts will be converted into equity,” he added.
On demand from some areas to declare them backward, he said the people should move forward and not backward. “We want to take the people forward. Look at the vision of Maharaja Hari Singh. It was he who had set up Jammu and Kashmir Bank, Ranbir Press and constructed Ranbir canal,” he added and disclosed that it was the only Ranbir Press that was insured for the floods.
On demand from several legislators to increase their Constituency Development Fund (CDF), Drabu said the present fund of Rs 1.5 crores will continue and proposed setting up of a Committee of four to five experts to take into criteria the area, population and efficiency of the Constituency to decide the CDF. He pointed that some constituencies (like that of Congress MLA GM Saroori) was 120 square kilometers while his own (Rajpora) was 80 square kilometers. Similarly, some segments have one lakh votes while others have 1.8 lakh. This aspect should be taken into consideration before deciding on the CDF, he said.
Denying that the State Motor Garages was being privatized, he said he had only proposed clubbing all vehicles under one command, which was aimed at empowering the Garages and not disempowering it.
He proposed three more Model Business Villages of Rajma, Mango and Apricot and said some more villages will be taken up once the plan succeeds.
The Finance Minister said he will explore two options on payment of amount to girl child in six districts, where child sex ration was alarming. While in the budget it was proposed that the girls born after April 1 would get Rs 1000 per month in the bank accounts for 14 years and get Rs 6.5 lakh at the age of 21, the Minister proposed that the second option was that the girl could also get the amount at the age of 17 to pursue her studies. However, the amount would be less if withdrawn at the age of 17.
Drabu proposed to give i-pads to all legislators instead of laptops saying they would have easy access to every kind of records with the help of i-pads. He announced that Press Club of Jammu will be upgraded while as Press Club will be set up in Srinagar.
Drabu said that the budget presented by the Government has been formulated for the specific local requirements and would ensure that the benefits percolate to every section of the society.
He said that budget has been formulated in such a manner so that it provides succour to not only the people, but also benefits entrepreneurs businessmen practising various trades in the State.
“Care has been taken to make it comprehensive, by exploring the possibilities of putting back the sagging economy of the State on the trails and also catalyzing the business environment in the State which has witnessed a slump post-floods”, he added.
“Our duty is to protect the State’s Special Taxation Powers”, the Minister said while referring to the General Sales Tax (GST) regime. He said `’we have to create conducive atmosphere so that businessmen can carry out their trade without hassles”.
Referring to the Government’s initiative of preserving, propagating and professionalizing the traditional handicrafts which go a long way in contributing their bit in economy and job-employment generation, the Finance Minister said that craft economy will be made buoyant and to revive it courses of MBA in craft management would be introduced in the twin Universities of the State.
“Unless we change the basis of the craft economy, we will not able to revive and revitalize this important aspect of our heritage and culture”, he added.
“We have 7 lakh small and micro-enterprises involving 14 lakh people. Through technology inputs, market incentives and proper branding we hope to encourage natural growth in the handicraft sector, thereby giving employment to more than 21 lakh people associated with this sector”, Drabu maintained.
Terming tourism as one of the mainstays of the State’s economy, the Minister said that we will be taking the necessary steps to ensure its augmentation so that it also contributes in the revenues of the State. He said focussed attention would be paid to promote Jammu as an independent tourist destination.
Rreferring to the development of backward areas, he said that Government would accelerate their growth by carrying full-fledged programmes as special projects, so that these areas are developed at par with the developed pockets of the State.
“The Agriculture sector would be revived and developed on modern and scientific basis by introducing certain new and traditional farm practices and in this regard the Khul Development Programme would be introduced on a large scale so that proper irrigation facilities are provided to the farmers round the year which would in turn increase the agriculture productivity and yield thereby contributing in making the State a prosperous agrarian belt”, the Minister said that this would also result in making the State economically strong.
“The Dal forms one of the important part of our culture and its preservation is one of the top priorities of the Government as well as the people and J&K Diaspora and it is in this regard we would be floating Dal Development bond for its restoration. It would be a pilot project to involve the non-resident state subjects of Jammu and Kashmir by leveraging their professional competencies, financial strength, and emotional equity”, Drabu elaborated.
He announced an ethnographic village to preserve the rich cultural heritage of Kashmiri Pandits at Martand-Anantnag and a village for Gaddi-Sippi tribe in Jammu.
Earlier, entire National Conference staged noisy walk-out in the House as party MLAs Javed Rana, Sheikh Abdul Jabbar and Abdul Majid Laram protested near the Well seeking time to speak on the budget as Speaker Kavinder Gupta asked the Finance Minister to reply to the debate around 4.35 pm.
As the MLAs continued protest, the Speaker told them that they should ask their party leaders for time as he had allotted the time to all parties as per their strength before start of debate on the budget.
“Why are you asking me? I had allotted time to every party leader. You must ask your leader for time,” the Speaker told the agitated NC MLAs amidst thumping of desks by the treasury members.
As senior NC MLAs including Ali Mohammad Sagar and Mohammad Akbar Lone also joined the protests, the Speaker said Sagar is a senior member and he must brief his legislators. He said NC has consumed 130 minutes, Congress 120 militants as against PDP’s 70 minutes. On charges of NC MLAs of partisan, the Speaker declared that he didn’t need any certificate from the NC.
The NC MLAs continued protest during which Javed Rana tore off some papers and threw them in Well of the House. Later, all NC MLAs staged walk-out in the House and didn’t listen to reply of the Finance Minister on the budget.
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