‘Allocations amount to financing peace in J&K’: CM
By News Agency of Kashmir
New Delhi : Jammu and Kashmir will have plan allocation of Rs. 4500 crore for the next fiscal (2008-09) which is Rs. 500 crore more than the current year. The plan will be fully funded and include a component of Rs. 993 crore of special plan assistance, over and above the power reform grant.
This was decided in a meeting Chief Minister Ghulam Nabi Azad had with the Deputy Chairman, Planning Commission, Montek Singh Ahluwalia here this morning. The meeting lasted for two hours.
Economic Advisor to J&K Government, Dr. Haseeb Drabu, Chief Secretary, Mr. B. R. Kundal, Financial Commissioner, Planning, S. S. Kapur, Principal Secretary to Chief Minister, Anil Goswami, Commissioner Secretary, Finance, Mr. B. B. Vyas, Commissioner Secretary, Power Development, Mr. Basharat Ahmad Dar and other senior officers assisted the Chief Minister in the meeting. The Planning Commission side comprised members and secretary of the Planning Commission.
Ahluwalia announced that the Prime Minister’s Reconstruction Plan for the State would continue as planned and funded by the union government separately. He also announced that a high level group of Centre and State officials will be set up to monitor power reform progress. The group will meet on a monthly basis.
Complimenting the Chief Minister for the reforms and infrastructure development undertaken in the State, Mr. Ahluwalia and other members of the Planning Commission greatly appreciated the State government’s management of the economy. Mr. Ahluwalia said that there is clear improvement in resource management and distinct signs of turnaround in the State economy. He noted with satisfaction the qualitative improvement in the State finances and the impressive performance of the power sector.
The Commission felt the need for higher public and private investment in the agriculture and allied sectors. The members also felt that more public expenditure should be allocated to segments of the health sector, agriculture, irrigation and exploring ground water potential.
Ahluwalia assured the Chief Minister that the funds release mechanism would be rationalized and unnecessary bottlenecks removed. He also appreciated the implementation of Prime Minister’s Reconstruction Plan in the State.
Earlier, making a strong case for enhanced allocation for the coming fiscal, the Chief Minister said that the last five years have shown that the only route to achieve long lasting peace in the State is through economic reconstruction and prosperity. He said the help extended by Planning Commission and Ministry of Finance has been a key factor in making a turnaround in the State.
On the reforms undertaken by the J&K government under his leadership, Mr. Azad said the State economy, backed by credible policy action-fiscal, industrial and trade- has diversified and its SDP is growing at a much faster rate than in the preceding years. With transition to VAT regime, he said, the tax collection has become much more buoyant and the expenditure mechanism is equally improving. Backed with this confidence, he said, the State has set a target of 8% growth in SDP over 11th Five year Plan.
The Chief Minister said sectors like health, education, connectivity and power are the thrust areas of his development paradigm. He said 33 District and Sub-District hospitals are nearing completion in the State. Similarly, he said, networks of colleges, bridges and roads are being laid to take development to grassroots. He said the State needs a special attention in terms of finances as apart from lagging in development and ruined by militancy, J&K seems to be victim of natural disasters as well. He said just as the State was limping back to normalcy in the last five years, a snow tsunami, a major earthquake, devastating floods, drought and fires and avalanches visited in quick succession. All these misfortunes, he said, cost the State dear and strained the resources.
The Chief Minister said as if the natural disasters were not enough, the State seems to step on a fiscal landmine every year laid by poor fiscal management of the past, whether in the servicing of power bonds, bullet repayment, Baglihar project’s borrowing or honouring a devolved guarantee. The fiscal gains are negated by this, he said, adding that the State’s fiscal balance has been literally destroyed by the sudden discovery of unpaid liability of interest on NSSF loans from the year 2001 amounting to Rs. 1000 crore.
Azad asked the Planning Commission to put in place a system of proportionate allocation from SPA and ACA so that there is no liquidity mismatch in the State. He called for release of 75 percent of all special assistance in the first quarter itself. He assured the Commission that he will personally ensure that every rupee that is generated and received from the Centre will be put to the best use and sought its continued support and understanding to achieve this end.
The Economic Advisor to J&K Government, Dr. Haseeb Drabu gave a complete overview of the last five years performance of the State government in all areas.
Later, speaking to media soon after the meeting, the Chief Minister thanked the Prime Minister Dr. Manmohan Singh and Planning Commission for help and assistance, saying the allocations amount to financing peace in the state, country and the sub-continent. He said 2007 was the best year in the last two decades with least human rights violations and violent incidents. He hoped the funds flow would match the speed with which works have been undertaken in the State. He had a special word of thanks for the Planning Commission for agreeing to pre-pone the plan discussion so that the legislative approval is sought for State budget to be presented on Wednesday. He said the early approvals by the Commission will help maximize the limited working season for implementing plan schemes.