A situation of virtual financial collapse is threatening the State. Actually for last ten months, financial crunch has been deepening and the then Government could not do much to wriggle out of the critical situation. Many reasons are given for this state of affairs. It is said that the Centre did not release the funds committted for the annual plan by the then Planning Commission. Planning Commission had approved Rs 7300 crores worth annual plan, Rs 600 crores under PMRP and Rs 4000 crores for Centrally Sponsored Schemes for Jammu and Kashmir. However, most of the funds in all three sectors are pending. To make things more difficult for the State, the floods came at a time when harvesting was round the corner. The State had to divert crores of rupees from other heads to meet the exigency arising out of floods. Imposition of Model Code of Conduct in the course of Assembly elections and inability of political parties to form popular government also contributed to the depening financial crisis. The treasuries have bills worth 2200 crore rupees pending for a long time with no hope of a solution in sight.
Various segments of society are hard hit by the financial crunch. The Government is at best able to pay only salaries and nothing beyond. The developmental work or projects whether floated by the State or the Centre have all come to a grinding halt. Its impact on people, especially the Government and public sector employees, is highly discouraging. The total resources gap of the State has touched an all-time high figure of above Rs 5000 crore, and though there are hardly two months left in the existing financial year, there is no word from Union Finance Ministry over the plan finalisation process. Intensitying of financial crunch will be understood from the fact that two dearness allowance instalments to State Government employees are pending while the Central Government employees or the employees in other states have already drawn both of the instalments.
Some questions arise in this context. Firstly, if the Planning Commission had sanctioned specific amounts under three heads for the financial year 2014-15, why these funds were not rleased so far? Just two and half months are left for the financial year to come to an end and the State is starving for funds. We understand that there is confusion at the Centre after the Planning Commission was dissolved and a new system is being pursued which is still in the process of formulation. Why has not the Centre foreseen the financial difficulty of our State or other states like ours, and taken steps on its own to relieve J&K of impending financial crisis? We are not certain when the new planning system will be set afoot at the Centre so that the State would ask for its share. Secondly, why did not the previous Government take urgent steps to emphasize on the Centre the necessity of releasing the funds allocated by the Planning Commission? We fail to understand the reason for the outgone Government to treat this crucial matter with non-seriousness.
Now Governor’s attention has been drawn towards this critical condition. He has been apprised by two senior bureaucrats, Planning and Development Secretary and Finance Secretary about the worsening state of affairs. In view of this, the Governor has made an urgent request to the Union Finance Minister to come to the rescue of the State by releasing plan and other funds under earmarked heads so that the State is able to bridge over the gap. The total amount due for the State in 2014-15 in all three sectors totalled Rs 11900 crores and about 60 per cent funds of the State were pending. It hardly needs to be reminded that J&K is a deficit state and its economy is very fragile. It essentially depends on financial grants from the Centre and if these are not forthcoming a situation of chaos is likely to take place in the State.
Most of the Centrally sponsored and financed development schemes for J&K have not either been taken up or taken up but left half way for one or the other reasons. Was it lack of expertise and planning or was there some malevolence about implementing these schemes, one cannot say. However, we have in these coluns highlighted the failing of the State Government in some of these cases.
We expect that the Governor will be meeting with the Union Finance Minister to place berore him the ground situation in J&K. It is all right that there will be a debate on the issue, why financial crunch has crept into the State and arguments and counter-arguments will flow, but the truth about the situation is that financial condition in the State is critical and something practical has to be done to relieve the state from impending bankruptcy. Debates on why the crunch has happend will help in understanding the reasons which will be taken into account for future guidance, but what has to be done now should be done immediately. The State cannot be starved because that would lead to a chaotic situation. All steps are to be taken to avoid the situation becoming more complicated and grave.
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