Sanjeev Pargal
JAMMU, Dec 27: Worst economic crisis has gripped Jammu and Kashmir with empty coffers leading to severe cash crunch in treasuries hitting development works in the State, which was somehow managing only salaries and pensions of its serving and retired employees from non-plan component. The crisis was likely to be overcome only once the new Government is in place and the issue is taken up at highest level with the Government of India.
Highly placed official sources confirmed to the EXCELSIOR that the State was passing through one of its worst economic crisis, which aggravated due to over two and half months long caretaker Government in the Assembly elections when the Chief Minister, the Finance Minister and the Planning Minister were unable to take up the matter with the Union Finance Minister as their role during Model Code of Conduct was reduced to that of interim Government, which can’t take any major decision.
“Most of the treasuries were empty due to the financial crisis. There is no financial mess in the State but flow of funds from the Government of India has stopped. We hope to tide over the crisis when the new Government is in place and the new Finance and Planning Ministers take up the matter with the Government of India,’’ sources said, admitting that functioning of the Government has been very badly hit due to the financial crisis.
The Government of India had approved Rs 7300 crores worth annual plan, Rs 4000 crores under Centrally Sponsored Schemes and Rs 600 crores for Prime Minister’s Re-construction Plan (PMRP) for Jammu and Kashmir during current financial year of 2014-15 without any discussion with the Chief Ministers, the Finance and Planning Ministers or the bureaucrats.
This was done as the Government was yet to come up with announcement of a body in place of the Planning Commission. The Union Finance Ministry had approved annual plans and other funds for all States equivalent to previous financial year of 2013-14.
However, according to sources, the flow of funds in Jammu and Kashmir has been virtually stopped as the Government of India had raised certain clarifications, which it wanted to be replied with immediately before release of further funds.
“The issues were such that only a political dispensation can settle them. It was not for the bureaucrats to reply to these issues,’’ sources said, adding once the new Government is in place only then these issues can be sorted out and till then the financial crisis was likely to prevail.
However, they said, the administration was trying that the development works didn’t suffer due to lack of adequate flow of funds.
“We have directed the District Development Commissioners to go ahead with the development works with the rider that payment to the contractors can be made once the funds were released by the Union Government under plan, Centrally Sponsored Schemes and Prime Minister’s Re-construction Plan,’’ sources said.
It may be mentioned here that immediately after taking over as Finance Minister, Arun Jaitley had released two installments of annual plan for Jammu and Kashmir but thereafter the Centre raised certain queries and issues but by then the Assembly elections had been announced and the issues couldn’t be sorted out. The new Government, which has to in place before January 17, would take up the issues with the Government of India leading to release of funds to tide over the economic crisis, sources said.
It may be mentioned here that bills worth several crores have piled up in different treasuries and authorities have asked the contractors to wait for arrival of the funds. Seventeen percent DA was also due in favour of Government employees and pensions—10 per cent from January 1, 2014 and 7 per cent from July 1, 2014 but the Government was unable to release it due to funds crunch. This is probably for the first time in past several years that the Government was unable to release DA of the employees in the full year.
When approached for comments, Planning and Development Principal Secretary BR Sharma said the financial problems have cropped up in the State but hopefully they will be addressed when the new Government takes over.
“There have been some issues with the Centre, which the new Government will take up,’’ he added.
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