Jammu & Kashmir ranks low on business reforms

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Jammu & Kashmir ranks low on business reformsJammu and Kashmir has been ranked 29 in the World Bank’s assessment of the state over implementation of business reforms.
“It is a fact that the World Bank in its report on assessment of state implementation of business reforms has given a ranking of 29 to Jammu and Kashmir in the country,” said Finance Minister Haseeb Drabu in a written response in the Legislative Council.
“However, the World Bank has appreciated the state for steps taken for improving business,” he added.
The state government said several factors were responsible for the low ranking.
“Now the situation is improving year by year and the government is optimistic to attract entrepreneurs and investment in the state by providing suitable investment environment,” the minister said.
He said reforming financial structure and simplifying the system were the core initiatives which would ultimately provide an enabling environment gradually so that economic development takes up. The government has enforced effective liquidity consolidation mechanism to address inflow and outflow mismatch on a day-to-day basis. “The reforms being initiated take some time to permeate down the levels. One year is too short a period for it to manifest,” he added.
He said the government was poised to ensure fiscal and financial reforms by complying the provisions of Fiscal Responsibility and Budget Management Act, 2006.
“Due to recurrent fiscal stress over the last few years, the treasury operations in the state would get ultimately affect the normal business activities in the state. Since last year, the trend has been reversed by focusing on corrective measures on fiscal deficit so that transparent and evenly flow treasury operations are ensured to help smooth business activities,” he added.

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