Sanjeev Pargal
JAMMU, Feb 20: The Finance and Planning and Development Departments have set the crucial process into motion for taking Vote-on-Account for Jammu and Kashmir for first six months of next financial year of 2015-16, which has to be approved either by the Legislature before March 31 or by the Governor, who has assumed powers of the Legislature after imposing Governor rule on January 8, if the next Government formation is delayed.
Official sources told the Excelsior that the Planning and Finance Departments of the State, which were responsible for entire budgetary exercise—be it the full budget or Vote-on-Account (VoA)—have started the exercise for taking VoA for the State for first six months of 2015-16, either by the new Government or by the Governor depending upon the situation by the middle of next month.
Governor NN Vohra today asked the Principal Secretary Planning and Development Department BR Sharma to keep all formalities in place if a Vote-on-Account was required. As the Governor’s rule can last only six months, which has to be followed by the President’s rule, Vohra can take the VoA only from January 8, the date he had assumed powers of Executive and Legislature, to July 8 (i.e. a period of six months). However, such a situation will arise only if the new Government is not formed in the month of March.
Sources said the Governor wanted to keep Planning and Finance Departments ready for any eventuality for taking the VoA in case the Government formation is delayed. However, according to political observers and economists, even if the new Government is formed by March 15, it can take the Legislature approval for the VoA by March 31, the last date for the VoA approval. However, delay in formation of Government beyond that could compel the Governor to take the VoA.
“If the new Government is in place in the middle of March, the Legislature had to pass VoA before March 31. However, if the Government formation is delayed, the Governor had to pass the VoA. In both the cases, the exercise for taking the VoA has to be conducted by the Finance and Planning and Development Departments in consultations with 28 Departments of the State. The exercise is on and would be completed in the next few days,’’ sources said.
Pointing out that in no case the full budget can be passed in the State before March 31 now even if the new Government is in place in the next few days, sources said, the Government too would have to take VoA for first six months of the next financial year as preparation of budget takes a time of at least two months.
The VoA had to be taken either by the Legislature or by the Governor before March 31 to facilitate functioning of the Government and meet other expenses on account of development, salaries and pensions of the employees etc. The VoA is taken for first six months of the financial year. During the period of six months, the Government had to get the budget passed from the Legislature. However, if the elected Government is not in place, the full budget will be passed in the Parliament after expiry of six months as Governor’s rule is converted into the President’s rule after six months but the President doesn’t assume powers of the Parliament.
For current financial year, former Finance Minister had presented Rs 45,543 crores worth budget in the Legislature in February 2014.
The State had projected a total of Rs 11,900 crores worth grants from the Central Government including Rs 7300 crores worth Annual Plan, Rs 4000 crores worth Centrally Sponsored Schemes and Rs 600 crores Prime Minister’s Re-construction Plan in addition to Share in Central Taxes etc.
Sources said the Planning and Development and Finance Departments were in the process of completing their exercise of consultations with all 28 Departments in the State before finalizing an amount for the VoA for first six months of next financial year.
“The two Departments would complete their exercise in the next few days irrespective of the fact that the VoA is taken by the Governor or by the new Government, if it was formed, through the Legislature,’’ sources said.
Meanwhile, the Governor today reviewed the formulation status of Annual Plan for 2015-16 in a meeting with the Principal Secretary, Planning and Development, B R Sharma.
Mr Sharma informed the Governor that the exercise of holding discussions with the various State Government Departments regarding formulation of Annual Plan 2015-16 has been completed.
In this context, the Governor recalled the discussions held in the first meeting of the Governing Council of the NITI Aayog, which he had attended recently in New Delhi and urged Sharma to expedite the process of finalizing the Annual Plan for its timely approval by the Government.
Sharma apprised the Governor that the Planning Department has since largely completed the action due at its end to avail balance funding under the Special Plan Assistance during 2014-15. The Governor desired him to personally pursue the matter with NITI Aayog and the Department of Expenditure, Government of India, for early release of the balance share due to the State Government.
The Governor had met Union Finance Minister Arun Jaitley on January 20 and, thereafter, a team of officers led by the Principal Secretary, Finance, had held meetings with senior officers of the Union Ministry of Finance for follow up on the decisions taken in the Governor’s meeting with the Finance Minister.
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