Excelsior Correspondent
Srinagar, June 10: State Government in Upper House today conceded with the view of the World Bank that Jammu and Kashmir is worst to do business.
“It is a fact that the World Bank in its report on assessment of state implementation of business reforms has put Jammu and Kashmir State at serial number 29 in its ranking in the country,” said Minister Incharge Finance in a written reply to MLC Bashir Veeri in Legislative Council.
“It is also fact that World Bank has appreciated the State for steps taken for improving business,” the Minister added. He said several factors were responsible for the low ranking by the World Bank but added that the situation is improving.
“Now the situation is improving year by year and the Government is optimistic to attract entrepreneurs and investment in the State by providing suitable investment environment,” said the Minister.
He said reforming financial structure and “simplifying the system” are the core initiatives which will ultimately provide an enabling environment gradually so that economic development takes up.
“The Government have enforced effective liquidity consolidation mechanism to address inflow and outflow mismatch on a day to day basis. The reforms being initiated take some time to permeate down the levels. One year is too short a period to manifest,” said the Finance Minister.
The Minister said the Government was poised to ensure fiscal and financial reforms by complying the provisions of FRBM Act, 2006.
“Due to the recurrent fiscal stress over the past few years the treasury operations in the State would get affected ultimately affecting the normal business activities in the State. Since last year the trend has been reversed by focusing on fiscal deficit corrective measures so that transparent and evenly flow treasury operations are ensured to help smooth business activities,” added the Minister.
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