J&K’s liabilities surge to `42k cr, double in 5 years

JAMMU: Despite J&K’s improvement in revenue generation in the form of different taxes, liabilities of the state government have increased to around Rs 42200 crore during last five years.
In a written reply to the question asked by BJP, MLA, Chaman Lal Gupta, Finance Minister, Abdul Rahim Rather on Thursday informed the legislative Assembly that the state liabilities in 12 different categories have increased from Rs 21366 crore in 2008 to Rs 42283.57 crore in March, 2013.
Giving further breakdown, Finance Minister said that the loans borrowed by state government from NCDC and GIC have swelled up from Rs 800 crore in 2008 to Rs 2293 crore in March 2013, while the borrowings from the open market have grown from Rs15510 in 2008 to Rs 5484 crore in 2013.
The government’s liabilities in form of state provident funds has increased from Rs 4046 crore in 2008 to Rs 9954 crore in March 2013.
While the liabilities borrowed from insurance and pension fund trust and endowments, reserve funds, major works and contracts and other deposits stood at Rs 2011 crore in March 2013.
Besides, committed liabilities in respect of land acquisition charges and claims in respect of unpaid bills on works and supplies to the state have grown up to Rs 1573 crore and the loans in form of the special securities issued to NSSF have increased to Rs 6072 crore.
However, the government of India’s loans on Jammu and Kashmir government have come down from Rs 3262 crore in 2008 to Rs 1838 crore during last five years
State has cleared all the liabilities of the borrowings from RBI and J&K Bank in 2013 which was Rs 2055.22 crore in 2008, he said.
To the supplementary question, Finance Minister also informed that the total revenue realization in the form of states own taxes and non taxes, share of central taxes and grants, SRE has increased to Rs 18360 crore in 2013-14 from Rs 9301 crore in 2009-10.
While the revenue generation from central pan grants, capital receipts, CSS and unfunded debt has increased to Rs 19708 crore in 2013-14 from Rs 12918 crore in 2009-10.
The minister also informed that number of steps have been initiated to institutionalize the path of the fiscal correction and consolidation through target based framework which include rationalizing the tax structure process, reforms in VAT administration, imposition of the guarantee fee, imposition of water usage charges, New Pension Scheme and new recruitment policy.
However, he said that the salary paid by the state to its employees has seen a hike from Rs 6095 crore in 2009-10 to Rs 13185 in 2013-14.