As Finance Minister Haseeb Drabu is making preparations to present the second annual Budget in the Legislative Assembly on January 22, the PDP-BJP government’s efforts in the last nine months to revive the post-flood economy have disappointed people.
The coalition government, in its maiden Budget on March 22, 2015, had promised to work towards economic self-reliance and fiscal autonomy while focusing attention on putting the state on the path of recovery after the floods in 2014.
The government had termed its first Budget as “white paper” on the state finances but there has been no headway in rehabilitating the flood-hit people, finalisation of new industrial policy, privatisation of the toll tax plaza at Lakhanpur to curb corruption and rolling out of the tourism policy to give a boost to the economy.
The situation further worsened due to non-payment of bills by the government departments in the past nine months. Till now, the government has failed to provide separate budgetary provisions for new administrative units announced by the previous NC-Congress government at the fag end of its tenure, affecting the administrative functioning.
At present, Jammu and Kashmir does not have an industrial policy. Drabu had extended the old policy for three months and a committee was constituted, but so far, it has failed to finalise it.
The only silver lining was the ‘repackaged’ welfare schemes for the girl child, release of Dearness Allowance to employees and extending maternity leave for women employees while a cut in taxes was in tune with the general policy across the country.
The Kashmir Chamber of Commerce and Industry recently decided to boycott the pre-Budget meeting with the Finance Minister.
The business community has been raising its voice against what it terms ‘a reign of terror’ through the raids conducted by the Commercial Taxes Department, Labour Department, Income Tax Department despite the losses suffered by traders due to the floods.
The total income of the state declined by 1.5 per cent in the 2014-15 fiscal and the average per capita income of the common man in the state has declined from Rs 59,279 to Rs 58,888 due to the devastating effects of the floods and other causes.
“The government should come up with an industrial policy for generating employment and making manufacturing as engine of growth. There is a need for a total overhaul of the existing policy structure to make a business-friendly environment,” said Rakesh Gupta, president, Chamber of Commerce and Industry, Jammu.
For the first time, J&K had presented two separate documents — Annual Financial Statement and Power Budget — laying contours of how the government intends to overcome the huge fiscal challenge.
The total public expenditure was budgeted at Rs 46,473 crore, with Rs 11,246 crore earmarked for building infrastructure and remaining Rs 35,227 crore for revenue expenditure. However, the total liability borne by the present government is staggering Rs 44,646 crore.
Post-floods, govt fails to revive economy
