SRINAGAR: Jammu and Kashmir Finance Minister Haseeb Drabu today informed that business conditions in the State have improved.
Dr Drabu admitted that the Word Bank (WB), in its report in June 2015 on Assessment of State Implementation of Business Reforms, has put Jammu and Kashmir at serial number 29 in its ranking in the country.
“It is also fact that WB has appreciated the state for the steps taken for improving business like developing of Common Application Form, Online Consent Management System for various pollution and environment related clearances and certificates, defining clear timeline for provisioning of electricity, water and sewage connections, implementation of Online system for e-filling of rturns, e-payments under VAT and CST besides entactment of Public Service Guarantee Act, 2011”, he said.
Replying to a question in the Legislative Council, Dr Drabu said for low rating of the state by the WB, there have been several reasons over the year.
Now, he said, 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.
Dr Veri further asked what are the reasons that the state is lagging behind in spite of promises made by the coalition government of reforming financial structure and simplifying the system to make it investment friendly within a year.
Dr Drabu said reforming financial structure and simplifying the system are the core initiatives which will ultimately provide an enabling environment gradually so that economic development gears up. He further informed the House that various measures stand already taken which will have over-all positive impact shortly.
The reply said that the government has enforced effective liquidity consolidation mechanism to address inflow and outflow mismatches on a day-to-day basis.
However, the reforms being initiated take some time to permeate down and levels, he said adding that one year is too short a period for them to manifest.
He said the government in the finance department is poised to ensure fiscal and financial reforms by complying the provisions of Fiscal Responsibility and Budget Management (FRBM) Act 2006.
Further due to recurrent fiscal stress over the past few years, the treasury operating in the state would get affected, ultimately affecting the normal business activities in the state, the reply said.
It said that since last year, this 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. Dr Drabu said for sectoral development, several measures have been taken in the Industries and Commerce, Horticulture, Housing and Urban Development and Health sector. He said simplifying the system is a continuous process and the government is focused on it. (AGENCIES)
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