FM presents J&K interim budget 2024-25, revised estimates in Parliament

New Delhi, Feb 5: The Revised Estimates for 2023-24 and Interim Budget 2024-25 of the Jammu and Kashmir government were Monday placed before the Parliament by Union Finance Minister, Nirmala Sithraman.

The two Appropriation Bills on the Supplementary Budget for 2023-24 and Vote on Account for 2024-25 would be considered by the Lok Sabha and Rajya Sabha in this regard.

The Finance Department of J&K had drafted the Supplementary Budget for the current year and the Interim Budget for the next financial year.

For this, the Department assessed the revenue receipts of the J&K government from GST, motor spirit tax, excise, and stamp duty. Further, the non-tax revenue from electricity and water supply, mining royalty, timber sales, and annual rent from industrial lands were also examined.

The revenue of the J&K government has been estimated at Rs 20,867 crore.

The J&K government also pursued the Centre for getting central financial assistance.

Lieutenant Governor Manoj Sinha and Chief Secretary Atal Dulloo led J&K’s efforts in this direction. Crucial meetings were held in August 2023, October 2023, and January 2024 in the Ministry of Home Affairs and the Ministry of Finance to review these demands of the J&K government.

The Union Home Minister and Union Finance Minister personally reviewed the fiscal management of the J&K government in recent months.

Accordingly, the Centre agreed to provide Rs 41751.44 crore to the J&K government in this financial year and Rs 37277.74 crore in the next financial year.

These assistance figures have been duly captured in the Revised Estimates of 2023-24 and the Budget Estimates of 2024-25 of the Union Government.

This assistance would be provided under the MHA’s demand No 58 for assistance to J&K.

This assistance includes the normal assistance (resource gap) to the J&K government and equity contribution for hydropower projects at Kiru, Kwar, and Rattle.

These assistance figures are captured in the Union Budget which is already before the Parliament and the same would be taken up for discussion before the J&K’s interim budget.

Building on this, the J&K government drafted its Supplementary Budget for 2023-24 and Vote on Account for 2024-25.

The Finance Department also drafted the two Appropriation Bills (Supplementary Demands and Vote on Account) for placing before the parliament.

The revised estimates for 2023-24 are overall lower than the budgeted estimates for 2023-24 as the J&K government was successful in streamlining its expenditure.

The supplementary demands for 2023-24 of Rs 8712.90 crore pertain to the four Departments of Finance, Power Development, Hospitality and Protocol, and Cooperatives.

The supplementary budget is required by the Finance Department given the repayment of debt, while the Power Development Department needs to provide for power procurement.

The Hospitality and Protocol department intends to develop the new J&K Bhawan at Dwarka, New Delhi for which land would be allotted from DDA.

The Cooperative Department requires the funding additionally for its new CSS and Assistance to Primary Agricultural Credit Societies (PACS).

These additional demands are proposed to be catered with Supplementary Demands for the current year 2023-24.

The interim budget for 2024-25 makes provisions for the ongoing initiatives for infrastructure development, sustainable agriculture, new industrial estate, PRI level works, employment generation, developing tourism, and social inclusion.

During the preparation of the interim budget proposals, consultations were held with all the departments and various stakeholders to provide for ongoing initiatives and arrive at realistic budgetary numbers.

For finalising expenditure proposals, an assessment of financing needs of infrastructure projects, and social and economic measures undertaken by departments was undertaken.

The budgetary exercise focused on the imperative of advancing the cause of the greater collective good within realistically realisable resources.

While the budgetary estimate for the next financial year 2024-25 is about Rs 1,18,728 crore, the J&K government has proposed the Vote on Account for Rs 59,364 crore.

This interim budget for 2024-25 covers revenue expenditure of Rs 40,081 crore and capital expenditure of Rs 19,283 crore.

The interim budget of J&K for 2024-25 provides for the ongoing measures and schemes that includes: Rs 2959 crore provisioned for tap-water connectivity for rural areas under Jal Jeevan Mission with Rs 532 crore as J&K share; Rs 934 crore for transforming agriculture and allied sectors of J&K through the Holistic Agriculture Development Programme (HADP), including provisions for IFAD funded J&K Comprehensive Investment Plan (JKCIP); Rs 1907 crore for rejuvenating school education infrastructure and services through funding under Samagra Shiksha Abhiyan; provision of improving road connectivity with Rs 1683 crore for PMGSY roads, Rs 300 crore for CRF roads, and Rs 1000 crore NABARD scheme; Rs 1313 crore for strengthening decentralised governance by providing for local area works of panchayat and urban local bodies; Rs 1271 crore for strengthening infrastructure and services in the health sector under National Health Mission mechanism; Rs 1093 crore for rural housing under PM Awas Yojana-Grameen scheme; Rs 1000 crore for comprehensive social security coverage for old aged, widow, and disabled pensions by saturation approach; Rs 660 crore for J&K’s equity for in the hydro electric projects at Ratle, Kwar, and Kiru, which would provide stable revenue source and cheaper power; Rs 505 crore for timely procurement of machinery, equipment, prosthetic aids, and drugs in Health sector through the dedicated corporation; Rs 500 crore for capitalisation of the banks, including Cooperative Banks, Rural Banks, and J&K Bank; Rs 450 crore for infrastructure of new colleges and universities as per NEP vision; Rs 430 crore for women empowerment intervention of Ladli Beti and marriage assistance; Rs 400 crore for construction of transit accommodations for Kashmiri Pandit employees; Rs 400 crore for development of industrial estates and related infrastructure; Rs 370 crore under Swachh Bharat Abhiyan (Urban) scheme; Rs 390 crore for flood management project of River Jhelum; Rs 450 crore for GST re-imbursement to ensure timely reimbursement of the claims; Rs 272 crore for DDC and BDC grants improving local governance at district and block level; Rs 174 crore for development of model schools under PM-Shri scheme; Rs 150 crore for developing rooftop solar and other avenues of new and renewable energy; Rs 140 crore for creation of sports infrastructure; Rs 100 crore for conclusion of World Bank funded Jhelum Tawi Flood Recovery Project; Rs 100 crore for Mission Youth programmes for education, skilling, and employment; Rs 100 crore for heritage preservation; Rs 91 crore for new tourism destinations, new circuits, Sufi circuit and identified religious circuits, ropeways, highway resting places and promotion of golf; Rs 70 crore under infrastructure for welfare of tribals for construction of tribal hostels, milk villages, nomad shelters, libraries for Gujjars; Rs 100 crore for sewerage projects in urban areas, Rs 70 crore for development of new townships and affordable

housing and Rs 50 crore for Dal development; Rs 40 crore for Tourism promotion; Rs 15 crore for the festival promotion and promotion of cinema and theatre; Rs 40 crore for meeting incentives as per the provisions of the Industrial Policy and Start-ups; Rs 15 crore for trade promotion through J&K TPO; and Rs 100 crore for youth startup, job fairs, and employment fairs; Rs 30 crore for establishment of cold storage and Rs 30 crore for high-density plantation; Rs 80 crore for establishment of DDC, BDC, PRI accommodation and offices as also for security arrangements of DDC, BDC, and PRI representatives; Rs 59 crore for construction of Police Housing colony and relief and rehabilitation; Rs 45 crore for construction of bunkers and digitisation and CCTVs in police stations; Rs 30 crore for improving quality in schools, school infrastructure, for career counselling and introduction of additional streams in schools and Rs 5 crore for replacement of old fleet in transport sector.

The two Appropriation Bills on the Supplementary Demands for 2023-24 and Vote on Account for 2024-25 of the J&K government are likely to be considered by the Lok Sabha and Rajya Sabha from February 7 to 9, 2024.