Sanjeev Pargal
JAMMU, Mar 10: Jammu and Kashmir was likely to project Rs 80,000 crores worth award from 14th Finance Commission of India for next five years beginning April 1, 2015 when the term of the award given by the 13th Finance Commission would come to an end.
Official sources told the Excelsior that the 14th Finance Commission, constituted recently by the Government of India headed by Dr YV Reddy, former Governor of Reserve Bank of India (RBI), would be visiting all three regions of the State after Lok Sabha elections. The Finance Commission has toured some States but since the Legislature session was in progress here, the Commission would now visit the State after completion of Lok Sabha elections.
The 13th Finance Commission of India had given Jammu and Kashmir an award of Rs 40,000 crores for five years, which would end on March 31, 2015 as 2014-15 happened to be last financial year of the award given by the 13th Finance Commission.
The 14th Finance Commission, which has been mandated by the Government of India to tour all the States to assess their requirements for next five years beginning April 1, 2015, has its term up to October 31, 2014.
Headed by Dr Reddy, the Commission comprised Prof Abhijit Sen, Member, Planning Commission of India, Ms Sushma Nath, former Union Finance Secretary, Dr M Govinda Rao, Director National Institute for Public Finances and Policy, New Delhi and Dr Sudipto Mundle, former Acting Chairman, National Statistical Commission, all Members and Ajay Narayan Jha, Secretary.
Sources said the State Government has started its exercise for presenting its claim of double the award given by the 13th Finance Commission before the 14th Finance Commission during its visit to the State.
Though, according to sources, the State Cabinet would formally take a decision on exact amount to be sought by the Government from 14th Finance Commission of India for its award for next five years beginning 2015-16, it was likely to ask for something around Rs 80,000 crores.
The 13th Finance Commission of India had given Rs 40,000 crores award to Jammu and Kashmir for five years, which the State Government had welcomed as it was almost at par with its expectations.
Sources said the 14th Finance Commission, like the previous Finance Commi-ssion, would also visit all three regions of the State-Jammu, Kashmir and Ladakh to assess their requirements for next five years before finalizing and giving its award.
The Commission has been mandated to review the state of the finances, deficit and debt levels of the Union and the States, keeping in view the fiscal consolidation roadmap recommended by the 13th Finance Commission and suggest measures for maintaining a stable and sustainable fiscal environment for healthy growth.
It would give suggestions to amend the Fiscal Responsibility and Budget Management Act currently in force and while doing so, (the Commission, may consider the effect of the receipts and expenditure in the form of grants for creation of capital assets on the deficits.
It would also consider and recommend incentives and disincentives for the States for observing the obligations laid down in the Fiscal Responsibility Budget Management Acts.
The net proceeds of taxes collected by the Centre from the States have to be divided between the Centre and the States.
The Commission would suggest measures needed to augment consolidated fund of a State to supplement resources of Panchayats and Municipalities.
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