I am happy to report that an IT-enabled system has been rolled out in the Commercial Taxes Department. Facilities of downloading forms, e-filing of returns and e-payment are being made available. I appeal to the registered dealers to come forward and make full use of these facilities.

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Outsourcing of services

Fast expansion of the Services Sector is a global phenomenon. In our own State, we are witness to regular and rapid increase in the share of the Service Sector in our GSDP. This Sector has tremendous scope for providing vast employment opportunities to our unemployed youth.

The requirements of peripheral services by the government departments for their own use have also increased manifold over the years. As such, the government has decided to adopt a systematic process of outsourcing of non-core, peripheral and auxiliary activities in the identified fields by all the government departments, thereby creating additional opportunities of employment for our youth and also encouraging the growth of expertise in the private sector in such areas. These services are proposed to be outsourced to the private sector under a comprehensive set of guidelines and also under the PPP mode, wherever it is found more feasible.

PSU Restructuring
Our public sector has played a historic role in the field of economic development of the State by promoting, supporting, actively participating as also indulging in the direct production of goods and services for the benefit of the society. Over the years, the private sector has grown as a sound and healthy competitor and has now come of age. This development has resulted into the redundancy of some of the functions performed by our public sector. Many of their manufacturing activities have already closed down over the years and several other activities have been scaled down.

The government has embarked upon a comprehensive exercise of re-structuring of the existing Public Sector activities to make them more aptly suited to the present business environment.

A High Level Committee of Officers and experts has been given the task of preparing well considered and detailed recommendations in this behalf.

In the meanwhile, I propose a sum of Rs 75 crore as budgetary support for the Public Sector Enterprises in the Budget Estimates for the next financial year. This provision includes a sum of Rs 26 crore to take care of claims under VRS/GHS.

Pay Revision Arrears
Last year, I had reported before this August House that the government had decided to pay off 50% of the arrears to the government employees and pensioners on account of the revision of pay and pensions, as per the recommendations made by the Sixth Central Pay Commission.

Continuing the employees’-friendly policy of the coalition government, headed by Jenab Omar Abdullah Saheb, the government has settled all their pending pay related issues through mutual understanding and it has been decided to pay off 100% arrears in five equal annual installments. The current year’s liabilities on this account have almost doubled to about Rs 917 crore in the Revised Estimates.

The House Rent Allowance (HRA) has been brought at par with the Central Government employees by increasing the highest rate applicable to Srinagar and Jammu cities to 20% with effect from first July 2011, from its previous rate of 17.5% of pay. This measure has necessitated an additional outgo of around Rs 70 crore in the current financial year and will involve additional expenditure of about Rs 110 crore during the next financial year.

The Hardship Allowance, sanctioned by the government in favour of the police personnel, is expected to cost Rs 122 crore in the current financial year. A provision of Rs 129 crore has been included in the Budget Estimates for the next financial year for this purpose.

As a further gesture of its employees’ friendly policy, the government enhanced Move TA of moving employees from Rs 6,000 to Rs 10,000 for all 52 categories and also enhanced the rate of Temporary Move Allowance from Rs 650 per month to Rs 1,500 per month.


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