Junaid Nabi Bazaz
Srinagar: Former state finance minister Abdul Rahim Rather said on Thursday that the financial crisis that has gripped the state currently has been created by New Delhi by not releasing funds.
“The financial crunch is nothing new. It is just due to the nonpayment of the central funds. Had New Delhi paid all the installments the current crisis could not have been there,” Rather told Kashmir Reader.
On Wednesday, governor NN Vohra sought Finance minister Arun Jaitley’s help to tide over the “grave financial crisis”.
The liabilities have swelled to Rs 2200 crore. In the valley, about Rs 1100 crore in liabilities have piled up—Rs 500 crore as pending employee provident fund payments and Rs 600 crore as outstanding contractors’ bills.
The state depends on New Delhi’s financial assistance and borrowings from open markets to meet its budgetary needs.
For the current financial year, New Delhi has allotted Rs 11300 crore.
“While the current financial year 2014-15 is about to end, the center has sanctioned only 40% of the money, while the rest of the money has not been released,” Rather said.
When asked about the reasons for the financial crunch, chief secretary Iqbal Khanday said, “I am busy. I cannot talk about it this time.”
However, noted economist and PDP legislator Haseeb Drabu blamed the “wrong decisions” of the previous National Conference government for the crisis.
“It is because of the creation of new administrative units and up gradation of schools which took place in the last government,” Drabu said.