Sanjeev Pargal
JAMMU, Feb 15: In some relief for cash starved Jammu and Kashmir Government, the Centre has released Rs 170 crore worth Special Plan Assistance (SPA) for the State but its majority of funds under various components including Annual Plan, Centrally Sponsored Schemes, Shares in Central Taxes, Prime Minister’s Re-construction Plan etc remained pending with the Union Finance Ministry even as just one and a half months were left for current financial year 2014-15 to end.
Official sources told the Excelsior that the Union Finance Ministry, which was dealing with current year’s Annual Plan and other requirements of the States for 2014-15, has released Rs 170 crores under the SPA after Principal Secretary (Finance) BB Vyas called on Union Secretary Expenditure in the Ministry of Finance Ratan P Watal.
The meeting was sequel to the talks between Union Finance Minister Arun Jaitley and Governor NN Vohra in New Delhi on January 30 in which the latter had projected grave fiscal scenario of Jammu and Kashmir with Jaitley, who, in turn, had asked the Governor to facilitate meeting between the Union Secretary Expenditure and Finance Department officials of Jammu and Kashmir.
Admitting the release of Rs 170 crores under the SPA by the Union Government, sources said it would help in going ahead with some development works but wouldn’t bail out the State from the current financial crisis especially bills worth hundreds of crores pending in the Government treasuries.
The SPA is special component within the Annual Plan. Prior to this, the Centre had released Rs 904 crores under the SPA and with Rs 170 crores more, total SPA so has gone up to 1074 crores out of a total of Rs 2064 crores approved by the Government of India for current financial year of 2014-15. With this, Rs 990 crores worth SPA was still pending with the Centre.
Sources said the Government has taken up release of entire pending amount under Annual Plan, SPA (which was also part of the Plan), Centrally Sponsored Schemes, PMRP, Share in Central Taxes and other components immediately to bail out the State from the financial crisis.
According to sources, the Secretary Expenditure has assured the State Government of release of more amount under Annual Plan and SPA in the next few days. Sources here believed that if new Government was formed in Jammu and Kashmir in the next few days, it would have to vigorously pursue the release of funds under all components with the Centre to clear the liabilities, which have been increasing with every passing day and might stand around Rs 5000 crores.
For current financial year of 2014-15, the Centre had approved total funding for Jammu and Kashmir to the tune of Rs 11,900 crores including Rs 7300 crores Annual Plan, Rs 4000 crores Centrally Sponsored Schemes and Rs 600 crores PMRP. Apart from this, the State had to get its share from Central Taxes.
Only bills in the treasuries on account of developmental works have crossed Rs 2000 crores and could go up further if the Centre didn’t release pending amount of the State within the next few days.
Sources revealed that the Government of India wanted some queries raised by the Finance Ministry on spending by the State Government to be answered before release of more funds. They said once the elected Government takes over the reign of affairs in the State, the new Finance and Planning and Development Ministers would take up the matter with the Centre for release of entire pending amount.
According to sources, even if the funds were released by the Government of India in first week of March, the State would be in a position to cope up with the financial crisis by clearing the liabilities.
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