Which State of the Indian Union would not want the centre to give it more and more funds under various plans, projects or schemes? True, Union Government provides funds to the States. Funds are given on the basis of certain norms keeping in mind various aspects of the State. It is not that funds are thrown away like that. Previously there was the Planning Commission that dealt with the allocation of funds to different states under different heads. These allocations are based on the proposals which the Planning Department in every State sends to the Centre. Planning Commission has been dissolved and now NIIT has taken its place. At the same time there is change in the Government at centre. Obviously when there is change of guard, things have to be re-adjusted.
Chief Minister Mufti Sayeed has rightly asked the Centre to treat J&K at par with the Eastern States in the matter of financial support. The agreement has to be supported in view of several common factors. First of all, J&K is a largely mountainous state with very limited plain area. Connectivity is essentially through surface transport and our hilly roads are vulnerable to the vagaries of weather more often than not. This has direct impact on our economy. Secondly, our State is not industrially developed. Our industries are few and far between. The conditions that are conducive for development of industries are not available in our State. There are a few industries restricted to few areas. Communication compulsions are in the way of development of industries. Thirdly, for last two decades and half, the State is pitted against armed insurgency sponsored and abetted by external elements. The security forces are engaged in challenging the insurgents but its impact is widespread. It has impacted almost every walk of life, administration, education, law and order, political stability and economic development. In particular the entire border area with Pakistan from Siachin Glacier to Kathua is become vulnerable. Security measures have brought great pressure on our resources. No Centrally sponsored project can be completed within the stipulated time because of a host of difficulties.
This is not a small issue and the difficulties with which the State has to put up are so complicated that the State cannot cope with these unless there is strong support structure. The Centre has to help in raising that structure. Therefore, the Chief Minister is within his right to seek special grants and ask for enhanced allocations. It has also to be noted that this coalition Government inherited nothing in the shape of assets from the previous Government. There are huge liabilities so much so that even salaries of some of the public employees are still pending. At the same time, the number of unemployed people is rising at a rapid speed. If the youth are not provided with means of subsistence they will take up the gun not because they are essentially insurgents but because they are unemployed and are goaded by anti-social elements to take up the gun to harass the Government. This is one of the reasons why the Union Government has floated some schemes specifically for the youth of the State like scholarships, training in skills, self employment prospects etc. As such there is justification for the State Government to seek special allocations to meet the critical situation.
However, there is the other side of the coin. The State Government has to remain within its modest means and there is no need to make loud announcements about ambitious schemes which cannot be fulfilled. The State Government has to prioritize its plans and schemes. It has also to introduce austerity and put a stop to extravagancies to which some of the departments are accustomed to. Waste has to be curtailed and austerity measures have to be implemented in all services. It has to learn to remain contented with what is available. After all, the Centre too has its limitations. The State must find ways and means of increasing revenue. Tax collection has to be streamlined and evasion of tax has to be controlled. In short the best way of balancing our income and expenditures is to seek enhanced funding and enhanced revenue collection plus austerity drive within the State.
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