Expenditure streamlined by Govt
Lieutenant Governor Manoj Sinha today lauded J&K UT’s interim budget 2024-25 and expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman.
The Lt Governor wrote on X:
“Grateful to PM Narendra Modi & FM Nirmala Sitharaman for J&K’s interim Budget 2024-25, which is dedicated to farmers, women, youth, marginalized section of society and seeks to strengthen the grassroots democracy in the Union Territory.
He said the interim budget highlights the Government’s commitment of rapid economic growth & it ensures that the growth is socially inclusive and sustainable. It focuses on fast expansion of agricultural economy & addresses the issue of regional imbalances & seeks to bridge rural-urban divide.
“The budget 2024-25 creates an enabling environment for investment & seeks to accelerate industrial growth.The budget will ensure that industries generate more employment, provide support to thrust areas identified for investment & it will encourage start-up ecosystem in the UT,” Sinha said.
He said the budget focuses on skill development & employment of Nari Shakti. It seeks to ensure that benefits of rapid economic growth flow equitably to the women in rural & urban areas, SHGs are empowered & women-owned business enterprises are provided access to resources & networks”.
An official handout said the Revised Estimates for 2023-24 and Interim Budget 2024-25 of Government of Jammu and Kashmir were today placed before the Parliament by Union Finance Minister, Nirmala Sithraman.
Finance Department of the UT had drafted the supplementary budget for the current year and the Interim Budget for the next financial year. For this, the Department had assessed the revenue receipts of the UT Government from GST, motor spirit tax, excise, and stamp duty. Further, the non-tax revenue from electricity and water supply, mining royalty, timber sales, annual rent from industrial lands, etc were also examined. The UT Government also pursued Government of India for getting central financial assistance.
Lieutenant Governor, Manoj Sinha and Chief Secretary, Atal Dulloo led the UT’s efforts in this direction. Crucial meetings were held in August 2023, October 2023 and January 2024 in Ministry of Home Affairs and Ministry of Finance to review these demands of the UT Government. The Home Minister and the Finance Minister personally reviewed the fiscal management of the UT Government in recent months.
Accordingly, the Central Government has agreed to provide Rs 41751.44 cr to the UT Government in this financial year and Rs 37277.74 cr in the next financial year. These assistance figures have been duly captured in the Revised Estimates of 2023-24 and the Budget Estimates of 2024-25 of the Union Government.
This assistance will be provided under the MHA’s demand no 58 for assistance to the UT. This assistance includes the normal assistance (resource gap) to the UT Government, equity contribution for hydropower projects at Kiru, Kwar and Rattle, etc. These assistance figures are captured in the Union budget.
Building on this, Government of Jammu and Kashmir drafted its supplementary budget for 2023-24 and Vote on Account for 2024-25. Finance Department also drafted the two Appropriation Bills (Supplementary Demands and Vote on Account) for placing before the Parliament.
The revised estimates for 2023-24 is overall lower than the budgeted estimates 2023-24 as the UT Government was successful in streamlining its expenditure. The supplementary demands for 2023-24 of Rs 8,712.90 cr pertain to the four Departments of Finance, Power Development, Hospitality and Protocol and Cooperatives.
The supplementary budget is required by Finance Department in view of the repayment of debt, while Power Development department needs to provide for power procurement. The Hospitality and Protocol department intends to develop the new J&K Bhawan at Dwarka, New Delhi for which land will be allotted from DDA. The Cooperative department requires the funding additionally for its new CSS, Assistance to Primary Agricultural Credit Societies (PACS).These additional demands are proposed to be catered with supplementary demands for the current year 2023-24.
The interim budget for 2024-25 makes provisions for the ongoing initiatives for infrastructure development, sustainable agriculture, new industrial estate, PRI level works, employment generation, developing tourism, and social inclusion.During preparation of the interim budget proposals, consultations were held with all the Departments and various stakeholders to provide for ongoing initiatives and arrive at realistic budgetary numbers. For finalizing expenditure proposals, assessment of financing needs of infrastructure projects, social and economic measures undertaken by Departments was undertaken.
The budgetary exercise focused on the imperative of advancing the cause of the greater collective good within the realistically realizable resources. While the budgetary estimate for the next financial year 2024-25 is about Rs 1,18,728 cr, the UT Government has proposed the Vote on Account for Rs 59,364 cr.
This interim budget for 2024-25 covers revenue expenditure of Rs 40,081 cr and capital expenditure of Rs 19,283 cr.
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