JAMMU, Mar 20: In a major development push for Jammu and Kashmir, the Central Government has approved an assistance of Rs 30478 crore for the Union Territory and announced 100 percent provision for the UT share in respect of all Centrally Sponsored Schemes.
This will give push to development works and projects, both in Centre and State sectors, in the newly created Union Territory of Jammu and Kashmir.
According to an official document of the Finance Ministry, the Central Government has approved an assistance of Rs 30478 crore for the Union Territory of Jammu and Kashmir for development and Rs 279 crore for Disaster Response Fund.
“Ongoing as well as new development works and projects to be undertaken by the Union Territory Government will receive major boost in Jammu and Kashmir with Central assistance of Rs 30478 crore for development. Not only the ongoing projects and development works will get boost but several new projects will also be taken up shortly,” sources said, adding the Central funding was ultimately aimed at making J&K a model Union Territory as promised by Prime Minister Narendra Modi and Union Home Minister Amit Shah.
The Central Government has also approved 100 percent provision for the Union Territory of J&K share in all Centrally Sponsored Schemes which means the J&K Government won’t have to contribute any amount in the Central schemes. Previously, when J&K was the State, it had to contribute the State share ranging between 10 to 30 percent depending upon the scheme.
“There will be substantial increase of 12 percent in development expenditure of Jammu and Kashmir,” sources said.
It may be mentioned here that the Prime Minister and the Home Minister had repeatedly been stating that Jammu and Kashmir will be made a model UT with development being the core agenda. In J&K’s annual Budget for 2020-21 also, Finance Minister Nirmala Sitharaman had stated that J&K will be the fastest growing UT in the country.
The document has listed resources of the Union Territory of Jammu and Kashmir for the Financial Year of 2020-21 as 53 percent from the entitled Central grants, 11 percent from borrowings, 19 percent from share of Central Taxes, 13 percent from UT’s Own Tax Revenue and four percent from UT’s Own Non-Tax Revenue.
Jammu and Kashmir will, however, incur 38 percent expenditure on capital and developmental works followed by whopping 30 percent amount on salaries, seven percent each on pensions and interest payments and 18 percent on Other issues.
“The Union Territory will have Revenue Receipts to the tune of Rs 91,100 crore for the next Financial Year of 2020-21 and Rs 62,664 crore worth Revenue Expenditure. It will have Revenue Surplus available for capital expenditure to the tune of Rs 28,436 crore, Capital Receipts of Rs 10329 crore and Capital Expenditure Rs 38764 crore,” the document revealed.
Capital Expenditure contribution towards GDP has been pegged at 19.28 percent while expected Growth in Gross State Domestic Product is 11 percent.
Jammu and Kashmir will have total revenue budget of Administrative sector at Rs 11,627 crore, of which expenditure to the extent of 69.7 percent is expected to be spent on the Home Department while total revenue budget of Social sector is Rs 20846 crore. Of this, the extent of 53.3 percent will be spent on Education Department.
Total revenue Budget of infrastructure sector is Rs 24,523 crore. Of this, amount to the extent of 63.6 percent will be spent through the Finance Department while total revenue budget of Economic sector is Rs 5541 crore of which expenditure to the extent of 25.01 percent will be spent on Agriculture Production Department.
As far as the Capital Expenditure is concerned, the total Capital Budget of the Administrative sector is Rs 2074 crore of which expenditure to the extent of 53.5 percent will be spent on Home Department. Social sector has Capital budget of Rs 4969 crore of which 27.4 percent will be used for the Higher Education Department.
Total Capital budget of Infrastructure Sector is pegged at Rs 20404 crore while total Capital budget of Economic sector is Rs 9952 crore of which expenditure to the extent of 53.09 percent will be spent on Rural Development.
