Almost each and every area and segment of the economy of the UT of Jammu and Kashmir has been touched and efforts made by means of various proposals and expected allotments in the budget for the financial year 2021-22 presented by the Union Finance Minister Nirmala Sitharaman in the Parliament for the second successive year as presently there is no legislature in the UT due to the Assembly elections yet to take place. The key and sensitive standing issues like tackling unemployment, massive corruption and lethargic work culture, being identified generally as growth impediments, requisite focus thereon has been impliedly envisaged in the budget. Since both the expenditures and the receipts are equal, there is, as such, no deficit hence a zero deficit budget.
Not only good governance and minimum Government but socio-economic development, infrastructure and promotion of ways and means towards strengthening Atma Nirbhar Bharat are going to get a pivotal attention. A noteworthy thing about the budget is that it is aiming at giving an impetus to economy in such a way so as to register a growth of 7.5 per cent as against 11 percent last fiscal indicating the impact of the corona pandemic. Even though the aftermaths of the corona pandemic are still troubling the economy, still the budget of the UT this fiscal is more than the previous one indicating that the emphasis being on revival, recovery, more development and resultant more expenditure generating required economic activities in Jammu and Kashmir.
It is fairly known that though several vacancies in Government departments both gazetted and non-gazetted besides of subordinate ranks are not filled for couple of years due to financial constraints, the Finance Minister has assured that all such vacancies having been identified for which ”accelerated recruitment” drive would take place indicating as many as 22500 posts in these departments would be filled while a provision of Rs.200 crore has been made for “mission Youth” so as to find opportunities in various sectors for uplift- (ment) of youth and their employment. Needless to add, immediately after abrogation of Article 370, the Government had promised a massive recruitment drive for 50000 jobs in various Government departments but on assessing the ”progress’ at the end of the year, barely 5000 jobs have been filled so far. The Government, again, had in February this year put the total number of vacancies at 84000 in the UT out of which one fourth were from the subordinate ranks. What we want to reiterate is that additional proposals and allocations aiming at resolving the unemployment problem to a larger extent should have been projected in this budget.
Referring to the Kashmiri migrants- relief and rehabilitation measures, the Finance Minister not only clarified that out of 6000 posts under the PM’s Employment Package, 3841 posts having been filled and for the remaining vacancies recruitment drive is being conducted but made it clear that other components like housing, employment, waiver on loans, cash assistance and free ration “would continue in 2021-22.” Transit accommodation has been the main problem faced by the migrants about which it is proposed that additional 1488 transit units of accommodation shall be undertaken during the fiscal under reference while land for another 2444 units has been identified and it is felt that this problem to a larger extent is going to be resolved.
Tourism industry with which is linked the livelihood of hundreds of thousands of people directly and indirectly followed by vital sectors of agriculture and horticulture are proposed to receive focussed attention in the Rs.1.08 lakh crore budget presented by the Finance Minister in the Parliament on March 17. While the Central Government appears all optimistic to fulfil its commitment to make Jammu and Kashmir a model of development, at the same time unfortunately, due to the phases of lockdown in connection with fighting the COVID-19 pandemic and resultant affecting adversely the tourism industry and related economic and commercial activities, expectations from this budget were already high and in this budget, an amount total of Rs.578 crore only is proposed to be allocated for this sector which comprise making highway resting places, maintenance of Mughal Road, tourism promotion, festival promotion, tourist circuits, new ropeways and the like. However, we feel there should have been additional funds allocation in tourism sector especially in terms of developing new tourist destinations and the requisite infrastructure.
District Development Councils (DDCs) and Block Development Councils (BDCs) have received due attention and Rs. 200 crore or Rs. 10 crore for each DDC has been allotted which we feel is reasonably sufficient looking to the maiden experience of such elected representatives to get involved in massive developmental works of their districts while Rs.25 lakh for each BDC has been provided for and in addition to it, Rs.30 crore stand earmarked for establishment of the DDC and BDC offices. It will be seen that a total amount of Rs.1613 crore in all, for the three tier Panchayati Raj institutions , the highest in the history of Jammu and Kashmir, is allocated thus strengthening the measures towards grass root development.
The budget presented is aiming at business revival, increased industrial growth with a total of Rs.700 crore, improving education sector for which Rs.1873 crore are to be spent, improved health and medical care and a provision of building two cancer institutes one each at Srinagar and Jammu, building roads under CRIF and PMGSY schemes, ex-gratia of Rs 40 crore to the corona warriors, setting up of two new medical colleges one each at Udhampur and Handwara at a total cost of Rs.325 crore each, Rs. 800 crore for raising the capital base of Jammu and Kashmir Bank Ltd, construction of bunkers and police colony at Rs.50 crore each etc are main indicators of the budget promising a turnaround of ”change and paving the way for generating hope a good measure of trust”.
However, it is to be underlined that in terms of avenues and the total collection of revenue earned by the UT Government being more or less inelastic, despite that, mopping up of funds for various segments of the economy mainly via- centrally sponsored schemes like 25000 houses under the Pradhan Mantri Aawas Yojna or piped water under Jal Jeevan Mission and other various projects, needs to be taken due note of. This all was going to result in massive spending thus to generate employment avenues and increased money incomes to give a revival push to the dormancy in the economy, if any, caused due to corona pandemic.
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