SRINAGAR: Congress leader Jairam Ramesh has voiced strong criticism regarding the presentation of the Jammu and Kashmir Budget by the Union Finance Minister.
Jairam highlighted the unprecedented nature of the current Finance Minister’s role, stating, “The present Finance Minister has the dubious distinction of being the only Finance Minister of India who has presented six state budgets since the Union Government has refused to hold Assembly Elections since the dissolution of the J&K Legislative Assembly in November 2018.”
Jairam expressed the Congress party’s hope that future budgets for Jammu and Kashmir will be presented by an elected Finance Minister and discussed by legislators elected by the people of the region. He emphasised the importance of democratic processes in budget presentations, which have been absent since the legislative assembly’s dissolution.
Beyond the procedural concerns, Ramesh raised several critical points about the budget’s content:
Excessive Borrowing: Last year, the Finance Minister received approval from Parliament to borrow Rs 12,000 crores. However, the actual borrowings amounted to Rs 24,000 crores, doubling the approved amount. Over the past two years, borrowings have increased five-fold, which Ramesh labeled as “unprecedented fiscal mismanagement.”
Shortfall in Additional Resource Mobilisation (ARM): The Finance Minister had promised to raise Rs 7,800 crores in ARM but only managed to raise Rs 1,000 crores.
Fiscal Deficit Concerns: The fiscal deficit, initially pegged at 1.6 per cent, turned out to be 5.36 per cent in FY24, more than three times the original estimate.
Reduction in Capital Expenditure (Capex): Capex has been reduced by 10 per cent, raising concerns about investment in infrastructure and development.
Declining Share in National GDP: Under the Union Government’s administration, Jammu and Kashmir’s share in the national GDP has declined from 0.9 Per cent in 2015-16 to 0.8 Per cent in 2022-23.
Jairam posed several questions to the Finance Minister regarding these statistics, questioning the heavy taxation on the people of Jammu and Kashmir without a corresponding increase in their welfare. He also queried the government’s claimed fiscal prudence at the national level compared to the state level’s fiscal profligacy. Additionally, he highlighted the high unemployment rate in Jammu and Kashmir, which stood at 17 per cent in February 2023, compared to 6.6 per cent in Andhra Pradesh and 12.3 per cent in Bihar.
The statement also addressed the Finance Minister’s announcement that the Union Government would take on the entire budget for the police in Jammu and Kashmir, amounting to Rs 12,000 crores. Ramesh questioned the repackaging of this expenditure from the Security Reimbursement Expenditure (SRE) and raised concerns about the implications for the state’s autonomy. He asked whether this move indicates the government’s intention to maintain control over Jammu and Kashmir’s home affairs from Delhi.
Jairam concluded by urging the Finance Minister to clarify whether the takeover of the police salary liability is a temporary measure or a permanent shift, and whether it reflects an intention to rule the state from Delhi indefinitely. He called for a commitment that when Jammu and Kashmir is reinstated as a state, police and security matters will remain under the jurisdiction of the state government.
