The Kashmir Pulse

JAMMU — The Parliament has approved the Revised Estimates for 2023-24 and Interim Budget 2024-25 for the Government of Jammu and Kashmir, commencing discussions on Tuesday.

Union Finance Minister Nirmala Sithraman presented the two Appropriation Bills regarding the Supplementary Budget for 2023-24 and Vote on Account for 2024-25 on February 5, 2024.

Efforts undertaken by the UT Government garnered appreciation from the Parliamentary Standing Committee on Tuesday, with Chief Secretary Atal Dulloo, Principal Secretary Finance Santosh Vaidya, and Secretary Planning Mohammad Aijaz representing Jammu and Kashmir before the Committee. These efforts underscored the developmental initiatives of the UT government before the Parliamentary Standing Committee.

The Lok Sabha deliberated on the Bills on February 6 and 7 and ratified both on Wednesday. Following approval from the President of India, the Bills were subsequently considered by the Rajya Sabha, which endorsed them on Thursday.

The Finance Department of the UT Government drafted both Bills, taking into account revenue receipts from sources such as GST, motor spirit tax, excise, and stamp duty, as well as non-tax revenue from electricity and water supply, mining royalty, and industrial rents, among others. The UT Government's own revenue was estimated at Rs 20,867 crore, with additional assistance sought from the Government of India.

Lieutenant Governor Manoj Sinha and Chief Secretary Atal Dulloo spearheaded the UT’s efforts, holding crucial meetings with the Ministry of Home Affairs and Ministry of Finance in August 2023, October 2023, and January 2024 to review fiscal demands. The Union Home Minister and Union Finance Minister personally oversaw the fiscal management of the UT Government in recent months.

Consequently, the Central Government has committed to providing Rs 41,751.44 crore to the UT Government in the current fiscal year and Rs 37,277.74 crore in the next fiscal year. These allocations were incorporated into the Revised Estimates of 2023-24 and the Budget Estimates of 2024-25 of the Union Government, encompassing various initiatives including equity contributions for hydropower projects and resource gap assistance.

Moreover, the Parliament approved the Interim Budget for 2024-25, outlining provisions for ongoing initiatives to foster social inclusion, enhance transparency, bolster revenues, and advance infrastructure development in Jammu & Kashmir.

The approved Vote on Account amounts to Rs 59,364 crore, covering revenue and capital expenditures aimed at diverse sectors such as water connectivity, agriculture, education, road infrastructure, decentralized governance, health, housing, social security, industrial development, heritage conservation, and sports infrastructure, among others.

With the parliamentary endorsement of the Appropriation Bills for Supplementary Demands for 2023-24 and Vote on Account for 2024-25, the UT Government is poised to accelerate infrastructure projects and social and economic measures, while striving to meet revenue targets.

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SRINAGAR — The Union Government on Monday unveiled Rs 59,364 crore interim budget for Jammu & Kashmir Union Territory, while the budgetary estimates for the next financial year 2024-25 are expected at Rs 1,18,728 crore.

Interim Budget

The budget documents of J&K Union Territory laid in the Lok Sabha lay bare that the Union Finance Ministry has proposed a vote-on-account for Rs 59,364 crore for Jammu and Kashmir.

Documents reveal that the capital expenditure involves Rs 19,283 crore and revenue expenditure Rs 40,081 crore.

The proposed interim budget includes Rs 48,930 crore as revenue receipts and Rs. 10,434 crore as capital receipts.

The documents show that total gross receipts in respect of the proposed vote on account for 2024-25 are estimated at Rs 75,932 crore, including the provision for ways and means advances of Rs 16,568 crore.

The Union Finance Ministry has sought parliamentary approval only for Rs 75,932 crore, including the provision for ways and means advances of Rs 16,568 crore.

The interim budget was presented as a Model Code of Conduct would likely come into effect in the first week of March for Lok Sabha elections which would be held in April-May. The UT’s full budget will be presented once the next government is in place after the 2024 parliamentary elections.

Budget Estimates for 2024-25

The total budget estimates for fiscal 2024-25 are Rs 1,18,728 crore, excluding the provision for ways and means advances, of which the revenue expenditure is estimated at Rs 80,162 crore and capital expenditure to be Rs 38566 crore.

The expected revenue receipts are Rs 97,861 crore and capital receipts are Rs 20,867 crore.

Fiscal Indicators

According to budget documents, the tax/GDP ratio is projected at 7.84 per cent for 2024-25 which is higher than the previous year of 6.56%.

These documents state that GDP for the year 2024-25 has been projected at Rs 2,63,399 crore, which shows a growth of 7.5% over the previous year.

This was the fifth consecutive budget of J&K UT to be presented in Parliament. After abrogation of Article 370 and reorganization of J&K into a UT, all budgets of J&K have been presented. This is being done as J&K has been without its own Assembly since 2018.

"Investment proposals worth Rs 90182 crore received in J&K"

The Government of India on Monday said that the J&K Government has received investment proposals worth Rs 90182 crore and investment worth Rs 5319 crore has been grounded in the Union Territory since 2019-20.

These details were revealed by the GoI in the budget documents of J&K laid in the Parliament today.

According to the documents, investment proposals worth Rs 90182 crore were received which have the potential to generate employment for 4,01,965 youth.

“Since 2019-20, an investment worth Rs 5319 crore has been grounded,” the documents lay bare.

The Union Territory Government has launched the Jammu & Kashmir Industrial Policy 2021-30 with the aim to attract new investment, create employment opportunities for youth, developing backward regions and expanding existing industrial units.

In a move to woo investors, it has also notified the Industrial Land Allotment Policy 2021-30, Private Industrial Estate Development Policy 2021-30, Wool Processing, Handicrafts and Handloom Policy 2020.

The GoI also revealed that apart from the existing 64 industrial estates, 46 estates are being developed to fulfil the goal of 'Made in Jammu and Kashmir'.

“46 new Industrial Estates have been identified for development that will attract investment and create employment opportunities,” the budget documents state.

According to the documents, Jammu and Kashmir emerged as the top-ranking Union Territory of India in the 2022 Export Ranking. “The Union Territory improved its ranking from 35 in 2020 to 17 in 2022,” the budget documents revealed.

The Centre also revealed that Handloom and Handicraft exports have doubled from Rs 563 crore in 2021-22 to Rs 1116 crore in 2022-23.

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SRINAGAR — Union Finance Minister Nirmala Sitharaman, in her unveiling of the interim union budget for 2024-25 in the Lok Sabha on Thursday, disclosed an allocation of Rs 37,277.74 crore for Jammu and Kashmir.

According to reports from a local news agency, this budget encompasses various aspects aimed at fostering development in the Union Territory.

The breakdown of the allocation reveals that Rs 35,619.30 crore is specifically earmarked for addressing the resource gap in Jammu and Kashmir during the fiscal year.

This financial provision underscores the government's commitment to supporting and enhancing the region's economic and infrastructural development.

Notably, this budget assumes significance as it marks the final fiscal roadmap of the PM Modi-led government before the upcoming Lok Sabha elections scheduled for April-May this year.

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JAMMU — The Union government, in its objective to give a push to Jal Jeevan Mission in Jammu and Kashmir, has allocated a whopping sum of Rs 9289.15 crore to the UT under Jal Jeevan Mission 2022-23, which is Rs 6412.71 crore more than the previous year’s budget allocation.

"In 2021-22, the Centre had allocated Rs 2747 crore which was nearly four times more than the preceding year 2020-21. This year the government has allocated a staggering amount which is nearly more than double its previous year's budget. This substantial increase in JJM budgets every year is reflective of the concern and seriousness of the government towards materializing its commitment of providing tap water connections to every household and capacity building of Water Quality Management through testing, monitoring and surveillance.”

Jal Jeevan Mission has been envisioned to have drinking water supply in rural areas, an adequate quantity of prescribed quality on a regular and long term basis at affordable service delivery charges, leading to improvement in living standards of the rural communities.

The Union Territory of Jammu and Kashmir contemplates of becoming ‘HAR GHAR JAL’ Union Territory by the financial year 2022-23. Out of total 18.35 lakh rural households in the UT, 10.39 lakh (57%) households have tap water connections.

In a significant achievement, Srinagar and Ganderbal districts have achieved the target of having 100% households with tap water connections. Efforts are also being made to ensure tap water availability for drinking, cooking mid-day meals, washing hands and usage in toilets in all schools and Anganwadi centres. To date, 22,421 schools (100%) and 23,926 (100%) Anganwadi centres in J&K have been provided with a tap water supply.

Considering the importance of water testing for monitoring the operation of water supply, verification of the safety of drinking water and investigation of disease outbreaks, 2.50 lakh water quality tests have been planned to be conducted in 2022-23. Besides, accreditation of all 20 district water testing laboratories will be achieved and all sub-divisional laboratories will be registered during 2022-23 under National Accreditation Board for Testing and Calibration Laboratories (NABL). Also, 1,589 water supply schemes have been targeted to be completed during 2022-23.

Jal Jeevan Mission presents a lifetime opportunity to put in place a system that lasts for the next 30-40 years and people living in villages continue to get assured tap water supply. In this regard, Gram Panchayats and its sub-committees including the village water and sanitation committee or Pani Samitis would take over the responsibility for the management, operation and maintenance of the water supply system.

The Mission is being implemented in a decentralized manner, following a bottom-up approach, wherein local village communities are being empowered to shoulder the key responsibility of the planning, implementation, management, operation and maintenance of the in-village water supply system. This is in consonance with the 73rd amendment of the constitution devolving the power to local Self-Governments.

Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has been formulated with the vision of extending the coverage of irrigation ‘Har Khet Ko Pani’ and improving water use efficiency ‘More Crop Per Drop' in a focused manner with end to end solution on source creation, distribution, management, field application and extension activities. Nearly, 43 ongoing minor irrigation schemes under Accelerated Irrigation Benefit Programme – Prime Minister’s Krishi Sinchai Yojana (AIBP-PMKSY) will be physically completed during 2022-23. Besides, 28 thousand hectares of Irrigation Potential has been targeted to be created and stabilized during 2022-23.

Similarly, the balance portion of work on Tawi Barrage costing Rs 73.34 crore is expected to be completed during 2022-23. The proposed gated barrage on Tawi is one of the three sub-projects of the prestigious artificial lake project which was conceptualized to give a boost to regional tourism in Jammu by creating recreational activities like boating and water sports besides enhancing the overall aesthetic look of the city. The other two subprojects, viz Tawi river development project and beautification and creation of tourist facilities are to be executed by the housing and urban development department and tourism department respectively.

The work on Ujh Multi-Purpose Project (UMPP) is also expected to start during 2022-23 for which Detailed Project Report (DPR) stands redesigned. 196 MW Ujh Multipurpose Project (Hydropower, Irrigation and Drinking) is the first of its kind in Jammu and Kashmir which envisages the utilization of the water resource potential of River Ujh, a tributary of River Ravi.

In addition, flood protection works costing Rs 27.91 crore for safeguarding the All India Institute of Medical Sciences (AIIMS) site at Vijaypur, Jammu, have also been targeted to be completed by 2022-23.

The Jal Jeevan Mission has been transforming the face of rural water supply across UT over the last two years. Through an integrated service delivery approach, the mission focused on sustainable practices with community-led and community-managed schemes, and source sustainability was weaved into the water supply schemes. And the transformative budget of 2022-23 will allow for an unprecedented reach to the rural and backward regions of UT to strive and thrive.

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