By Raqib Hameed Naik, TwoCircles.net,
Jammu: Jammu and Kashmir Finance Minister Dr Haseeb Drabu presented his maiden budget of PDP-BJP coalition in the Assembly on Sunday, with a focus on reconstructing economy, infusing reforms in system.
The budget document has been prepared in record time of less than three weeks, after government took charge of the state. The Budget was much anticipated by the people due to the prevailing financial crunch in the state post September floods.
In his Budget speech, state Finance Minister Dr Haseeb Drabu said, “This is not a good position to be in. In fact, if anything, it should be exactly the other way round. But there is no way I can help it as it is a legacy of the last 30 years if not more.”
“In 2015-16, the total public expenditure is budgeted to be Rs 46,473 crore. Of this Rs 11,246 crore is for building assets and infrastructure. The remaining Rs 35,227 crore is for current or revenue expenditure,” the former economist turned politician said.
“The total revenue receipts of the state in 2015-16 are budgeted to be Rs 42,137 crore leaving a resource gap of Rs 4,336 crore. This is going to be financed by prepositioning of the 14th Finance Commission grants without seeking any additional funding,” Drabu said.
Meanwhile, the budget was hailed by both the coalition partners. In a joint statement issued, PDP and BJP spokespersons have termed budget as a medium of long-term measures for ushering Jammu, Kashmir and Ladakh into a new era of development, growth, stability and empowerment.
“The direction given in the budget will set into motion the process of building a new Jammu and Kashmir on sound lines with focus on inclusive growth,” they said and added that it will set the tone for an entirely new developmental process for various sectors in the state.
“In the social sector, the women and girl child specific welfare measures are of immense significance and will go a long way in addressing the areas of concern,” they said and added that similarly the creation of around 3000 posts for the regularization of daily-rated workers is a laudable measure.
Following are the highlights of Budget:
* Jammu , Srinagar, to be developed as Smart Cities
* Abolishment of Archaic water tax, Aabiyana.
* Modern Looms for carpet weavers
* Dal development Bond floated with possibility of investment by Non resident Jammuites and Kashmiris.
* Creation of Tribal Affairs Department.
* Modern Basmati (Rice) Village in Jammu, Apple and Saffron Village in Kashmir and One in Ladakh.
* Charter aircrafts will fly tourists from Delhi to negate high costs of tickets during peak season.
* Girls will get Rs 1000 per month from their birth till their 14 years of age from state government.
* Exempt the hand pump also from the levy of VAT and Toll.
* VAT remission to the local industry extended till GST comes in force.
* Cashless system of VAT remissions for Industrial Purchases.
* Sick Units to be revived.
* Employee DA worth Rs 2200 crores released.
* Waiving off Demand Charges on electricity for seven months from September 2014 to March 2015.
* Exemption of Passenger Tax on vehicles which remained off road due to floods, from September to
December, 2014.
* Remission of stamp duty chargeable in case of instruments/documents executed between borrowers and the lending financial institutions on the fresh loans
advanced by such institutions to the persons affected by the floods to be extended up to March 31, 2016.
* Exemption under the GST in respect of lodging services
provided by hotels, lodges and guest houses to be extended up to end March, 2016.
* Exemption to all hoteliers from payment of entry tax on furniture/office equipment/kitchen equipment/other goods imported into the state for replacement and refurbishment till June 2015.
*Waiving off 50 per cent of the KCC loans for the smallest and most vulnerable farmers who have an outstanding balance of less than ` 1 lakh, for this purpose 150 crore are earmarked.
* Introduction of Gold, Silver and Bronze Cards for certain categories of registered dealers, so as to recognize traders of repute.
* Contemplation of amnesty under GST Act, 1962 for waiving of interest and penalty.
* Setting up an Alternative Dispute Resolutions Tribunal (ADRT) which will be empowered to speed track the settlement of all these cases.
* VAT exemption on Paddy, Rice, Wheat, Pulses, Floor, Atta, Maida, Suji & Besan to continue upto March, 2016.
* Exemption of toll on export of fresh vegetables.
* VAT remission for local industry to continue for another year.
* Exempt baby diapers, adult diapers and female sanitary napkins from VAT.
* Almonds and its kernels in zero per cent tax rate, on the analogy of walnut and walnut kernels.
* Business Process Re engineering, financial restructuring and administrative reorganization of the ailing PSEs.
(With inputs from PTI)