I am, indeed, privileged to rise before this august House, to present in succession, the third annual budget of the coalition government headed by our young and dynamic leader, Janab Omar Abdullah Sahib, Hon’ble Chief Minister of the State.
The brief administrative history of the last two years of the coalition government, representing one third of the tenure for which it has been mandated by the overwhelming support of the people, has witnessed very remarkable developments in all directions – political, administrative, social, economic and financial. Many major initiatives and measures of reforms have been taken-up under the wise and energetic leadership of the coalition government. The results are already there for every body to see. As such, I am not intending to take the precious time of this august House to narrate or even briefly mention them. I may only add that the impact of these initiatives and measures would have been much more intense, wider and visible if the man made disruptions of the socio-economic progress and repeated distractions of the government’s attention from development administration had not been caused by the elements who are inimical to peace and progress, and oblivious to the needs of socio economic welfare of the people.
On the financial side of governance, I am beholden to the vision and guidance of our Honourable Chief Minister, Janab Omar Abdullah Sahib. His astute statesmanship and keen insight, as also his ability to convince the Centre into extending the much needed and whole hearted financial support to the State, has resulted into carrying out a major turn-around in the socio economic scenario of the State despite heavy odds. I also feel duty bound to suggest here that all of us should be grateful to the concerned authorities in the Government of India, particularly the Prime Minister, Dr Manmohan Singh and the UPA Chairperson, Shrimati Sonia Gandhiji who have always extended their helping hand generously in resolving the financial, social and economic problems of the people of our State from time to time.
The Economic Scenario
The economic survey report has already been laid by me before this August House. At current prices, the preliminary estimates place our GSDP for the current financial year at Rs. 47,709 crore as against the last year’s figure of Rs 43, 236 crore. This reflects a growth rate of 10.35% as against 10.22% growth rate recorded last year. The corresponding figures of GSDP at constant prices (2004-05) are Rs 37,887 crore for the current financial year and Rs 35,538 crore for the last financial year indicating a growth rate of 6.61% as against 6.48% growth rate registered last year. In either case, the growth rate estimated now is higher than the growth rate of last year. However, it still remains below the All India average growth rate of 8.6% expected during the current financial year and 7.17% recorded last year. Nonetheless, it is satisfying that we have continued to move forward despite the prolonged disruption of the economic activities during the last summer.
The current year’s per capita income has been estimated at Rs 32,496 at constant prices (2004-05) in comparison to the last year’s estimates of Rs 30,886. This indicates a growth of 5.21%. While at the national level, there are clear signs of recovery of the economy from the effects of global melt down, a lot remains to be done by us at the State level to catch up with the All India growth rate.
As per the preliminary estimates, the contribution of the Primary Sector to the GSDP in the current financial year is estimated at 21.10%. The contributions of the Secondary and Tertiary Sectors have been estimated at 29.82% and 49.08% respectively.
I had indicated during my last budgetary address to this August House that the stagnancy in the Agriculture Sector calls for our fullest attention. I had also announced various budgetary measures to provide for some necessary interventions and corrections. I am happy to note that these measures have made quite a positive impact on the ground. I am hopeful that the Primary Sector will start showing some signs of recovery in near future.
