SRINAGAR: In a significant move aimed at addressing the unique financial challenges of Jammu and Kashmir, Union Finance Minister Nirmala Sitharaman introduced the Budget for the Union Territory for the financial year 2024-25 in Parliament today. The budget will be considered by both the Lok Sabha and the Rajya Sabha, according to a DIPR statement.
The Finance Department of Jammu and Kashmir meticulously drafted the Regular Budget for the current year. The department conducted an extensive assessment of the Union Territory’s revenue receipts from various sources including GST, motor spirit tax, excise, and stamp duty. Additionally, non-tax revenues from electricity and water supply, mining royalties, timber sales, and industrial land rents were examined, estimating the UT Government’s revenue at Rs. 21,860 crore.
the DIPR statement said a detailed analysis of Jammu and Kashmir’s fiscal situation was carried out to tackle legacy challenges such as high staff strength, a low revenue base, and a substantial debt load. The UT government has faced significant fiscal stress due to committed expenditures, leading to increased reliance on central grants. To address these issues, measures have been implemented to increase tax and non-tax revenues through improved GST compliance, efficient billing and collection, increased dealer registration, and transparent excise auctions.
Efforts to harness central funds have been intensified across all administrative departments, resulting in a sharp increase in receipts from centrally sponsored schemes. The UT government also strictly enforced borrowing limits and curbed the culture of overdrafts, successfully reducing off-budget borrowings. Austerity measures and biometric verification of beneficiaries were implemented to control revenue expenditure. Persistent efforts were made to secure increased central financial assistance.
The leadership of Lieutenant Governor Manoj Sinha, Chief Secretary Atal Dulloo, and Principal Secretary Finance Santosh Vaidya played a crucial role in these efforts. Key meetings held in June and July 2024 with the Ministry of Home Affairs and Ministry of Finance resulted in the Union Home Minister and Union Finance Minister personally reviewing the UT’s fiscal management.
Recognising the challenges and the strenuous efforts made by the UT government, the Government of India has agreed to provide special financial support to Jammu and Kashmir. The Union Budget includes a special central assistance package of Rs. 17,000 crore. This package comprises Rs 12,000 crore for salaries, pensions, and other costs of the Jammu and Kashmir Police, and an additional Rs 5,000 crore as a lump sum grant for the current financial year.
With this special package, Jammu and Kashmir’s fiscal deficit to GDP ratio is expected to reduce to 3.0% for the financial year 2024-25. The total central assistance for the UT is estimated at Rs. 67,133 crore for 2024-25. This unprecedented assistance aims to improve the fiscal position of the UT, enabling the government to address developmental needs and aspirations while maintaining stable fiscal health.
The budget for Jammu and Kashmir for 2024-25 focuses on ongoing infrastructure development, sustainable agriculture, new industrial estates, employment generation, tourism development, and social inclusion. Consultations with various departments and stakeholders were conducted to arrive at realistic budgetary figures. The total budget estimate for 2024-25 is approximately Rs. 1,18,390 crore, including revenue expenditure of Rs. 81,486 crore and capital expenditure of Rs. 36,904 crore.
Major Outlays
- Power Subsidy and Support: Rs. 9400 crore for power purchase from the National Grid and agreements with power generation companies.
- Roads & Bridges: Rs. 3983 crore for construction under PMGSY, CRIF, and other schemes.
- Education: Rs. 1875 crore for school infrastructure and services, including SSA and PM SHRI funding.
- Decentralized Governance: Rs. 1808 crore for local area development works.
- Rural Water Supply: Rs. 1714 crore for tap-water connectivity under Jal Jeevan Mission.
- Urban Development: Rs. 1484 crore for Smart City projects, sewerage treatment, and housing development.
- Social Security: Rs. 1430 crore for social assistance schemes and women empowerment.
- Health Sector: Rs. 1317 crore for health infrastructure and services under NHM.
- Housing for Poor: Rs. 1104 crore for rural housing under PM Awas Yojana-Grameen.
- Kashmiri Migrants: Rs. 1068 crore for salaries, assistance, and transit accommodation.
- Agriculture Development: Rs. 1021 crore for HADP, including cold storage and high-density plantation.
- Industrial Development: Rs. 923 crore for industrial estates, GST refund incentives, and trade promotion.
- Hydroelectric Projects: Rs. 776 crore for projects at Ratle, Kwar, and Kiru.
- Universal Health Insurance: Rs. 586 crore for health insurance coverage.
- Healthcare Equipment: Rs. 500 crore for drugs, machinery, and equipment.
- Higher Education: Rs. 475 crore for college and university infrastructure and NEP rollout.
- Tourism Development: Rs. 518 crore for tourism promotion and infrastructure.
- Sanitation: Rs. 445 crore for sanitation and waste disposal in rural areas.
- Flood Management: Rs. 390 crore for river Jhelum flood management projects.
- Employment and Start-ups: Rs. 405 crore for self-employment schemes and Mission Youth.
- Security Infrastructure: Rs. 179 crore for security-related infrastructure and police housing.
- Solar Energy: Rs. 150 crore for solar rooftops and pumps.
- Sports and Cultural Development: Rs. 335 crore for sports infrastructure, heritage preservation, and tribal welfare.
- Bank Support: Rs. 100 crore for revitalizing Regional Rural Banks and Cooperative Banks.
- Rural Employment: Rs. 500 crore for MGNREGA works.
- Environmental Conservation: Rs. 401 crore for Dal lake development, afforestation, and wildlife management.