Excelsior Correspondent
JAMMU, Dec 29: The new dispensation in Jammu and Kashmir, which has to be formed before January 17, will be left with no other option but to defer presentation of full budget in July or August as against scheduled timing of March in view of delay in holding of meetings of the Departments by Planning and Finance Departments followed by budget meetings by the new Finance Minister.
“In all probabilities, the new Government will be left with no other option but to take Vote-on-Account in the month of March and go for presentation of full budget in July or August after undertaking an extensive exercise which included Department wise meetings, inter-action with trade and industry representatives and above all the talks with new body, which would replace the Planning Commission, and the Union Finance Minister,’’ official sources told the Excelsior.
They said the new coalition Government, which was likely to take over before January 17 if imposition of Governor’s rule had to be averted, would be left with very little or virtually no options to present full fledged budget in the month of March. Annual budget or Vote-on-Account had to be passed before March 31 every year to avert any financial crisis in the State. In the event of Governor or President’s rule, the State budget is passed by the Parliament.
According to sources, the new Finance Minister would require at least three months time for preparatory exercise of the budget especially when he would be presenting first budget of the new Government. The preparatory exercise included meetings of Finance and Planning Development Departments with each and every Department to know their budget followed by the Finance Minister’s meetings with the stakeholders before taking up the issue of finalization of annual plan, Centrally Sponsored Schemes, Shares from Central Taxes, Raising of Loans and Prime Minister’s Re-construction Plan etc.
However, sources said, the new Government won’t be left with much time to prepare the get full budget passed in the Legislature in March and, therefore, it would have to go for Vote-on-Account and present full budget in Srinagar, the summer capital of the State, somewhere in June or July by when the new Finance Minister would have ample time to conduct all pre-requisite exercises for presentation of full budget.
As far as Vote-on-Account is concerned, it didn’t require debate separately on each and every Department like the full budget. The Finance Minister seeks approval of the Legislature for a certain sum to meet the Government and other expenditures for a period of up to six months (or less as he deems fit), which is debated in the House and approved. In this case, the new Government can complete the Legislature work within a short session instead of over month long budget session, which can be held later when full budget is passed.
The last time the Government had taken the Vote-on-Account was in 2010 when new NC-Congress coalition Government had taken over the reign of affairs in Jammu and Kashmir. In rest all years of the previous Government i.e. 2011, 2012, 2013 and 2014, former Finance Minister Abdul Rahim Rather had presented full budget. Rather was defeated in Charar-i-Sharief segment in the Assembly elections.
In 2010, the Government had presented full budget in the month of August in Srinagar.
Sources said the Finance and Planning Development Departments can convene Department wise meetings as part of budgetary exercise only after the new Government takes place.
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