Excelsior Correspondent
SRINAGAR, Apr 11: Jammu and Kashmir spends around 200 per cent of the revenue generated on the salaries, wages, pension and other retirement benefits of its employees.
Addressing a press conference here today, Dr. Subhash Chandra Pandey, Principal Accountant General (Audit), Jammu and Kashmir said that the expenditure on the salaries, wages, pension and other retirement benefits together account for 46.9 percent of the total expenditure. Dr. Pandey said that these account for 59.1 percent of the revenue expenditure and 198.7 percent of the state’s own resources in 2011-2012.
“The Government has decided to stagger the payment of arrears and pension revision, following the extension of the recommendations of the 6th Central Pay Commission to the State Government employees and those in the autonomous bodies in five equal installments. The liability being carried forward beyond 2011-2012 is estimated to be Rs. 3368 crore,” said Dr. Pandey.
He said that the increase in personnel costs on State ex-chequer has overtaken the fiscal gains on account of improved tax collection and reduction in interest burden. He added that in 41 departments’ detailed accounts of Rs. 1837.91 crore withdrawn from treasuries as lump sum amount have not been received in the office of the Accountant General as on March 31, 2012.
Dr. Pandey said that the State’s own tax revenues have shown steady increase particularly commercial taxes, adding that these are not sufficient enough to meet even the revenue expenditure of the State. He said the expenditure on the salary and wages increased by 30 percent, as compared to an increase of 11 percent in revenue receipts.
He said that 20 Government owned companies/corporations are either non-functional or deeply burdened financially. He said the financial return on investments made in these companies is not commensurate with the opportunity cost of investment measured in terms of average cost of Government borrowing. He added that all the past projections made by the State Government in the statements made before the State Legislature under FRBM Act have proved to be unachievable.
Trending Now
E-Paper
Follow our WhatsApp channel