JAMMU: Finance minister Haseeb Drabu said on Wednesday the net spending on implementation of developmental works has been getting cheaper since 2014-15, a change he attributed to “gradual change-making”.
In 2014-15, J&K was spending Rs 5.62 for every rupee it invested in developmental activities and in the revised estimates for 2016-17, this ratio has reached Rs 2.25, he told the assembly.
Drabu hoped the ratio will shrink to Rs 1.59, which will be the lowest ever. He said the government has initiated some pioneering fiscal management measures to strengthen and streamline the economic and social infrastructure.
He said as a part of the government’s initiative to increase developmental spending, the highest ever allocation of Rs 31000 crore (39%) is expected to be spent on developmental activities out of the total expenditure of Rs 79,472 crore for the fiscal 2017-18.
“What we need is peace, stability and a working environment to facilitate fruitful spending of this huge allocation and creation of tangible assets on the ground,” he said and added that the reformative measures announced in the Budget 2017-18 will go a long way in building a stable and progressive socio-economic framework in the State.
Winding up the discussion on the demand of grants for the departments under his charge, the minister said the government is working on introducing a system which can showcase tangible development on the ground. He said an effort has been made in the Budget to improve the public expenditure and to speed up the economic growth.
The finance minister said increase in budgeted Capex has massively shifted the total percentage of expenditure towards development front. In 2011-12, the rate of investment on development front was 6.80 percent of the State Domestic Product (SDP) which has reached 10.02 percent in 2016-17, the highest ever, he said.
“Presently the government is providing 40% share of our revenue in expenditure which is highest in the country and this expenditure is giving fillip to the economic growth”, he said.