Next year’s budget set to cross Rs 1 lakh cr
*Parl to give approval in winter session
Sanjeev Pargal
JAMMU, Nov 1: The Central Government has virtually given nod to the budget of Jammu and Kashmir Union Territory to the tune of Rs 61,802 crore for next five months of the current financial year of 2019-20 pending approval of the Parliament in its upcoming winter session from November 18.
The State administration has also completed all formalities for next financial year’s budget (2020-21) which was expected to be around Rs 1.21 lakh crore and will also require approval of the Parliament as the Union Territory of Jammu and Kashmir was under the Central rule in absence of the Legislative Assembly.
The Presidential order No. S.O.3938 (E), dated November 1, 2019 issued by Ministry of Home Affiars, Government of India has authorised the J&K Government to utilise the funds for next five months pending approval of the Parliament.
Immediately after receiving the order, the J&K Finance Department today conveyed authorisation to the Departments for utilisation of 50 percent funds out of five months budget estimates under both Revenue and Capital components.
Highly placed sources told the Excelsior that the Central Government has virtually given nod to the budget for remaining five months of the Union Territory of Jammu and Kashmir after deliberations between high-level delegation of J&K administration and top officials of the Union Ministry of Finance. A formal announcement was expected soon.
“Following high-level talks between the Union Finance Ministry and the Jammu and Kashmir administration, the Central Government has issued formal orders with approval of the competent authority to allow the Union Territory to incur the expenditure on salaries and other works for remaining part of the financial year of 2019-20,” sources said, adding that the budget will be formally approved soon and then passed by the Parliament, whose winter session is starting on November 18 and will last till December 13.
Though the sources didn’t give exact amount of the budget for the Union Territory of Jammu and Kashmir, it was likely to be Rs 61,802 crore.
The budget for the Union Territory of Ladakh has to be approved separately but the Central Government has reportedly authorized the administration there for utilization of funds.
Previous State Administra-tive Council (SAC) headed by former Governor Satya Pal Malik had approved current financial year’s budget for Rs 88,911 crore in December last year during the Governor’s rule.
However, now when Jammu and Kashmir is the Union Territory and under the Central rule in absence of the elected Legislative Assembly, the budget of the UT required approval of the Central Government followed by the Parliament.
Approval of the budget for rest of the five months of the financial year was necessitated in view of bifurcation of the State of Jammu and Kashmir into two Union Territories of J&K and Ladakh from October 31. The new budget of the Union Territory of J&K will be approved for five months from November 1, 2019 to March 31, 2020.
Meanwhile, the administration has almost completed preparations for the budget of next financial year of 2020-21 and held discussions in this regard with the Union Finance Ministry.
Next financial year’s budget of the Union Territory of Jammu and Kashmir could well cross Rs one lakh crore for the first time and was pegged around Rs 1.23 lakh crore subject to the approval of Parliament.
Next financial year’s budget will come into effect from April 1, 2020.
Sources said the State administration has held wide ranging of discussions with all Government Departments and senior functionaries to ascertain their requirements for the next financial year.
After detailed deliberations, the State administration has projected next financial year’s budget at Rs 1.23 lakh crore and discussed it with the Finance Ministry of the Government of India.
Sources said the budget has to be passed in the Parliament and it was expected that both the budgets of Jammu and Kashmir Union Territory including current budget for five months of this financial year and 2020-21 could be passed in the winter session of Parliament.
Jammu and Kashmir had adopted the practice of passing the budget in January though current year’s budget was approved in December last, to give ample time to the District Development Commissioners, Head of Departments etc to finalize developmental works well in advance in view of limited working season in some of the districts which remain snow bound for four to five months during winter.
Sources said the transition of Jammu and Kashmir State into two Union Territories of J&K and Ladakh was completely smooth in terms of finances as there was no problem on any account.
“The employees got their salaries and no bill has been returned,” they added.
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