Gopal Sharma
JAMMU, Mar 14: While maintaining that State was moving forward in the right direction to minimize the fiscal deficit as per the guidelines laid down in the J&K Fiscal Responsibility and Budget Management Act, Finance Minister Abdul Rahim Rather today said that the Comptroller and Auditor General of India has also lauded State’s financial achievements from internal resources mobilization as tax revenue has touched all time high figure of Rs 5900 crore indicating 26% growth.
Mr Rather in his one hour and forty minute long reply to the debate on the Budget in the J&K Legislative Assembly today said that growth rate of tax collection has been worked out to about 26 per cent over the last year’s collection of Rs 4745 crore and the State has also been applauded by the Empowered Committee of State Finance Ministers and the Finance Commission (FC), the highest monitoring foras of the country, for effective implementation of VAT regime and has been tagged as one of the best tax collection States of the country.
A total 19 members took part in 3-day debate which took about five hours and twenty minutes to conclude and expressed their views about the budget proposals and projections. He expressed that quality of debate was good in the Upper House and several suggestions also came from the members.
While quoting CAG’s report on State Finances for the year ending March 2012, Mr Rather said that the State has been appreciated for its financial achievements. He said that the State has made good use of the opportunities presented by the increased economic activities to substantially increase tax revenues. There has been a record mobilization of Commercial Taxes and Stamp Duty in 2011-12 and the State’s own revenues have shown a very high growth. It is to the credit of the Government that the State’s dependence on non-debt resources from the Central Government has come down from 67% in 2006-07 to 63% in 2011-12. CAG has said that even as concerns remained about delay in completion of on-going projects, the State Government’s capital expenditure has registered significant and steady increase. Likewise, it has been appreciated that the State’s switch over to Government Banking with RBI with effect from April 2011 after liquidating its entire overdraft with J&K Bank as on March 2011 with Special Central Assistance in the form of Grant-in-aid of Rs 1000 Crore. During 2011-12, the interest burden on overdraft/ways and means advances came down by over Rs. 220 crore as a result of this switch over to new banking arrangement.
Mr Rather said that the landmark achievements have been possible due to close monitoring and intensive review meetings coupled with efficient budget management and fiscal discipline to gauge the growth trends after intervals. The Minister said that the tabling of annual report of the FRBM Act, which oversees the limits and targets for reducing fiscal deficit with prescribed targets, in the State Legislature has become a regular feature since 2009. He said tabling of the report is mandatory to get Central grants and funding for State plans. He said State’s fiscal deficit is also declining as per the prescribed targets, adding that the per capita income is also increasing satisfactorily. Mr Rahim said that the tax revenue of the State has increased to Rs 5419 crore during current fiscal, showing increase of Rs 556 crore, which works to be 26% over the last year’s collection of Rs 4745 crore,. He said the VAT collected by Commercial Taxes Department is likely to reach to 4219 crore in comparison to 3940 crore , exceeding the budgetary target by Rs 279 crore. It is targeted to increase to Rs 4800 crore in the next fiscal. He said the Excise Revenue has also steadily increased to Rs 875 crore in the current financial year against Rs 517 crore in 2008-09. He announced that full computerization of the Commercial Taxes (CT) Department will be rolled out from the April next, adding that it will be the first department in the State to be 100 percent computerized.
“Computerization of the CT Department will be a big relief for the trading community as it will provide online transaction, e-payment, e-registration and e-return facilities to the traders and will also minimize their direct interface with the departmental personnel. Both Commercial Taxes and Excise Departments will be reorganized to fill the gaps in human resource which was imperative to further improve the efficiency of these vital revenue collection departments. he added.
Mr Rather said new Toll Plaza, at Lakhanpur, spread over an area of 133 kanals, which is the gateway to J&K, has been completed at a whooping sum of Rs 42.50 crore. “It has now a spacious truck yard to accommodate about 250 trucks at a time and 9 computerized weigh bridges”, Mr Rather said adding that 109 kanal more land is being acquired to meet the future requirements. The completion of this important project is vital for the growth and development of the State as it will facilitate better resource mobilization and check tax evasion”, he added.
While dispelling apprehension expressed by some members that the agriculture growth was declining, Mr Rather said it was a national as well international phenomenon that the contribution of agriculture in the overall economy is declining but its growth increases correspondingly. He said Chief Minister, Omar Abdullah was keen to make the State agriculture sector totally tax free and the Government has done it. He said tax concessions on the import of day old chicks have reduced import of poultry birds, thereby, considerably giving fillip to the local poultry production.
Giving comprehensive account of the Power scenario in the State the Finance Minister said under the new hydel policy, the State will be able to generate about 9000 MW by the end of 13th Plan. He said power deficit is a grey area of the State’s overall economic scenario, adding that against an expenditure of Rs 3874 crore on import of energy, the revenue generation on this account was only Rs 2450 crore during this fiscal. He also gave a detailed account of various hydel power projects in offing and said that the T&D losses are also showing downward trend. He also informed the House about measures taken to overcome un-employment problem and assured the members that qualification bar for assistance of Rs 30,000 as Government contribution for marriage of grown up BPL girls could be reviewed in future as the initiative is just to start in as a good will gesture.
Mr Rather said that some corporations owe an estimated total sum of Rs 95 crore to their serving and retired employees by way of CPF contribution and gratuity etc. The Government in a major initiative has decided to clear off these pending statuary liabilities in two years’ time frame adding that a sum of Rs 50 crore has been kept in the next years’ budget as special budgetary support to the financially weak corporations, over and above the normal budgetary support of Rs 59 crore. He said that once a prestigious lending organization, the State Financial Corporation which had lost its capital base has been brought back on rails and it will start earning profit from the next year besides extending loan facilities.
Earlier, participating in the Budget discussion, Jugal Kishore (INC) complimented the Finance Minister for his people friendly budget. He welcomed the VAT concessions announced on food items, farm equipment besides amnesty scheme to recover electricity dues. He called for Agri-interventions based on the local soil profile and climatic conditions to enhance crop productivity. He stressed for more focus on industrial sector.
Vijay Bakaya (NC) appreciated the budget presented by Mr Rather and said that the economic activity has received momentum and the State’s contribution to budgetary receipts has improved. He said that through better fiscal management and resource mobilization over the years, dependence on Central grants has reduced. Despite difficulties, the tax collection and generation has improved.
Sayed Asgar Ali (PDP) in his observations welcomed certain decisions of the Government but maintained that State should boost infrastructure development to facilitate pilgrims going for Machhil Yatra and also revive old tracking routes through Marwah –Wadwan to Valley and to Ladakh from Kishtwar. He asked for exploiting mineral wealth and providing maximum benefit to the people of Kishtwar and Doda as several hydel power projects are being raised there and many people dislocated.
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