Srinagar: Governor NN Vohra met the Union Finance Minister Arun Jaitley in New Delhi on Friday to seek special and additional financial assistance to bail the state government out of the current financial crises.
The Governor apprised the Union Finance Minister that the state government continues to reel “under the burden of huge structural negative Balance in Current Revenues (BCR) which has grown over the years,” said an official spokesman in a statement.
“The situation has further been aggravated by the unprecedented floods that struck the state in September 2014 resulting in colossal losses to life, private property and public infrastructure. The damages have adversely impacted the pace of economic activity in the state also leading to erosion of state government revenues,” Vohra told Jaitley, according to the spokesman.
The Governor further observed that there is an unfunded gap of over Rs 5000 crores in the overall resources of the state government as a result of which the level of pending liabilities across the treasuries in J&K has crossed over Rs 2000 crore, the spokesman said.
“The Union Finance Minister assured the Governor that the state government’s financial difficulties will be immediately looked into by the Union Finance Ministry with all sensitivity and sympathy on an emergent base. It was decided that a team of senior officers from the state will meet the Secretary Expenditure in the Union Finance Ministry so that the state government’s requirements are addressed in a time bound manner,” he said.
The Governor also requested for immediate release of the balance amount of around Rs 1160 crore under Special Plan Assistance (SPA) to ensure timely completion of ongoing development projects in the state, the spokesman added.