J&K opposes 50:50 funding in CSSs, wants FM to restore previous pattern

Sanjeev Pargal

JAMMU, June 8: The State Government has sought restoration of 90:10 funding pattern for Jammu and Kashmir for Centrally Sponsored Schemes (CSSs) on the ground that new pattern of 50:50 funding will put the State into financial trouble as the Government has projected Rs 6000 crores worth CSSs for current year of 2015-16.
Official sources told the Excelsior that the Government has approached Union Finance Minister Arun Jaitley with the request to restore previous pattern of funding the CSSs on 90:10 ratio i.e. 90 per funding by the Central Government and 10 per cent contribution by the State Government instead of new funding pattern of 50:50 i.e. equal funding of the CSSs by Centre and State Governments.
The Centre has made new pattern of funding (90:10 ratio) applicable to all States from current fiscal year of 2015-16 including special category States like Jammu and Kashmir and North Eastern States. However, the State Government, which was trying to tide over financial crisis in the wake of Rs 9400 crores worth liabilities left by the previous Government and situation created by September 2014 devastating floods, has justified restoration of previous funding pattern of 90:10 on the ground that it would become difficult for the State like Jammu and Kashmir to fund the CSSs on 50:50 basis.
“We have approached the Central Government. Finance Minister (Dr Haseeb Drabu) has also met Union Finance Minister Arun Jaitley on the issue. We want restoration of 90:10 pattern of funding for the State instead of 50:50 by treating Jammu and Kashmir as special category State,” Finance Secretary Navin Choudhary told the Excelsior.
Asserting that pending bills including GPF of the employees, SSA salaries, pending bills in treasuries etc were being cleared, Choudhary said the State was gradually tiding over the financial situation and very soon things would be completely alright. However, at the same time, he said, the State Government would continue to pursue its genuine case for grants with the Government of India including 50:50 funding pattern in the Centrally Sponsored Schemes.
Sources said the State Government has projected Rs 26,299 crores worth grants for current financial year of 2015-16 including Rs 19,698 crores entitled grants and Rs 6601 Other Grants. It would ask for Rs 6000 crores under Centrally Sponsored Schemes this fiscal year as against Rs 4000 crores projected in the last financial year of 2014-15.
According to projections of the Finance and Planning and Development Departments, Jammu and Kashmir would be seeking Rs 6000 crores under the Centrally Sponsored Schemes, which was Rs 2000 crores more than the previous financial year of 2014-15 when the State got about Rs 4000 crores under the CSSs. It, however, has projected Rs 600 crores under the Prime Minister’s Re-construction Plan (PMRP), which was equal to what the State Government had sought in the previous financial year but got only Rs 45 crores.
Sources said the negligible grants under the PMRP last year were attributed to certain changes the Government of India might bring in the PMRP. The Government could wind up the scheme and take up ongoing projects under another scheme, they added.
Under Entitled Grants, the State Government has sought Rs 8088 crores as Share of Central Taxes and Rs 9892 crores as Revenue Deficit Grants. Under SDRF/NDRF, the State would get Rs 229 crores.
Under Security Related Expenditure (SRE), which the Union Home Ministry reimburses to the State, the Government has projected grant of Rs 794 crores. Under the SRE, certain expenditures incurred by the State Government are reimbursed by the MHA.
The State could get Rs 196 crores as Cost Sharing Schemes.
It could get Rs 499 crores as Finance Commission grants for Panchayati Raj Institutions and Urban Local Bodies in the current financial year. The bifurcation of grants has been projected as Rs 374 crores for Panchayati Raj Institutions and Rs 125 crores for the Urban Local Bodies, which were yet to be elected as they had ceased to exist in March 2010 in the absence of elections.
During 2014-15, the State had projected Rs 7300 crores worth Annual Plan, Rs 4000 crores Centrally Sponsored Schemes and Rs 600 crores PMRP totaling Rs 11,900 crores apart from Share of Central Taxes, SDRF/NDRF amount, SRE and grants extended to the State under various other heads, sources said.