KL Report


Finance Minister Abdul Rahim Rather Presenting annual budget for 2012-13

Finance Minister, Abdul Rahim Rather Wednesday presented fourth consecutive annual budget for 2012-13 of coalition government led by Chief Minister Omar Abdullah in the Jammu and Kashmir Legislative Assembly. The budget which is thirteenth in the career of Abdul Rahim Rather is another zero deficit budget.

In his about 80 minutes long budget speech, Rather said the main emphasis has been on to accelerate the momentum generated so far in the process of socio-economic and welfare of the people.

“The current financial year has been witness to the consolidation of peace and order in our state. The number of tourists, who visited Kashmir Valley and Ladakh region and pilgrims to Shri Mata Vaishno Devi Shrine and Shri Amaranth Ji Yatra has surpassed all the previous records. These numbers signify the growing confidence of the visitors in the persistent efforts and capability of the government in restoring peace and order. A new era of peace and prosperity for our people has truly begun. The improved environment has also helped us in a more effective implementation of our plan schemes and budgetary programmes of socio-economic development,” Rather said in his speech.

“Through my next year’s budgetary proposals, I have tried to accelerate the momentum generated so far in the process of the socio- economic development and welfare of our people. My ultimate aim is to bring the major indices of development of our State at par with the All India averages and then try to take them farther,” he added.

BUDGET 2013-14  Highlights

Estimates of Total Receipts (TR) ` 38068 crore.

Estimates of Total Expenditure (TE) also at ` 38068 crore.

Revenue Expenditure (RE) including Security Related Expenditure (SRE) ` 28690 crore, Capital    Expenditure (CAPEX)  ` 9378 crore.

Non Plan Revenue Expenditure (NPRE) consumes ` 27096 crore of which  ` 17002 crore on salaries and pension.

A provision of ` 842 crore to disburse third installment of Pay/Pension revision arrears.

Earmarked provision of 700 crore for DA to employees and pensioners.

` 75 crore provision in 2013-14 for 10% Employer’s share under New Pension Scheme introduced from January, 2010.

Provision of 50 crore for clearing statutory liabilities of corporations reported at over 95 crore.

A provision of 26 crore for meeting cost of VRS/GHS in PSUs.

Annual Plan 2013-14:  ` 8000 crore. PMRP at ` 600 crore.

State Share of ` 1000 crore in Plan  to access Central funding of about ` 3500 crore under Centrally Sponsored Schemes and various flagship schemes.

Plan Revenue Expenditure (PRE) estimated at ` 1564 crore, Plan Capital Expenditure (PCE) ` 7036 crore excluding CSS.

` 783 crore provision for Urban Local Bodies, Universities and other autonomous bodies / institutions for supplementing their revenue expenditure requirements.

` 50 lacs to be provided annually for victim compensation scheme.

Budgetary provision for advertising and publicity to be increased by ` 4.00 crore.


Plan provision of ` 1579 crore for Social Services and` 652 crore for General Services Sectors.

Plan provision ` 2207 crore for Special Area Programmes including  ` 87 crore for Leh, ` 81 crore for Kargil, ` 128 crore for BADP, ` 62 crore for Tribal Sub – Plan, ` 52 crore under Rashtriya Shram Vikas Yojana and  ` 1741 crore for District Plan.

Plan provision of ` 384 crore for Agriculture and allied activities including Rural Development.

Plan provision of ` 126 crore for Industries and Minerals, ` 613 crore for Transport, ` 18 crore for Communication and ` 4.6 crore for Science, Technology and Environment Sectors.

Plan provision of ` 889 crore for Energy Sector.

Plan provision of ` 600 crore under PMRP out of which` 477 crore for counterpart fund – Asian Development Bank and ` 123 crore for rehabilitation of dwellers of Dal and Nageen Lakes.


Provision of  ` 231 crore for devolution to Panchayats.
Panchayats to implement various schemes like             MG-NREGA of the order of more than ` 1300 crore.
Sarpanches to get remuneration of ` 2000/- per month
Panches to get a fee of ` 300/- per sitting subject to monthly ceiling of ` 600/- per month.
The Government to consider appropriate insurance cover for elected Panchayat representatives.

Provision of ` 5 crore for housing and ` 9 crore for transit accommodation of migrants under PMRP.
` 8 crore set apart for migrants’ group mediclaim insurance.
Provision of ` 100 crore for Employment related initiatives including  ` 55 crore as seed capital for SKEWPY and ` 20 crore for Youth Start-up Loan Scheme.
Pending cases under Old Age Pension Scheme to be covered. Financial implication around ` 21 crore.
Provision of ` 2 crore under Medical Aid Trust Fund.
The wage rates of daily rated workers to be enhanced to                ` 150 per day.
The Government to explore and participate in insurance cover for journalists.
A comprehensive restructuring of Excise and Taxation wing to be undertaken.
70000 to 80000 posts hoped to be filled in the next few years.
Scheme for financial help to the acid victims to be launched.
Further ` 2 crore contribution to the corpus of Cancer Treatment and Management Fund.
BPL orphan girls who have passed matriculation to get ` 30,000 for marriage ` 3 crore earmarked for the scheme.
100 new mobile schools to be opened during next year.
Surcharge on the electricity bills in case of delayed payments who clear their pending bills during current financial year to be waived off.
As a one time exercise, all the previous energy consumption accounts of Power Development Department with the consuming departments to be squared up.
Provision of ` 1.00 crore for giving start to a well designed and effective and educational campaign against the habits of smoking and chewing tobacco.

ATTA, MAIDA, SUJI, BESAN, RICE, PADDY outside VAT net for one more year.
Tax concessions (VAT Remission) to industry extended upto 31.03.2014 or till adoption of new GST regime by our State.
Existing tax exemptions to Tourism sector to continue for another Year.
The rates for government advertisements to be increased by 50%.
Honey exempted from levy of VAT.
VAT on saffron reduced to 5%.
Subsidized small tractors, power tiller and other agricultural implements and attachments exempted from levy of VAT.
The limit of exemption from stamp duty increased to ` 1.50 lacs for both Kissan Credit Cards and Artisan Credit Cards. VAT on cooked food items sold by hotels, restaurants, food joints, dhabas reduced to 5% from 13.5%.
Import of Jute fabric exempted from the levy of Entry Tax.
Raw Pashmina exempted from VAT.
Stone made idols, havan samagari both packed and loose and guggal dhoop exempted from the levy of VAT.
VAT on durrets, quilt, blanket covers, table cloth, table covers, mufflers, bed spreads, pillow case and pillow sleeps to decrease to 5%.

VAT rate on CF Lights to be reduced to 5%.

Services provided by Authorized Automobile Service Stations, Property dealers/Real Estates Agents and Consultants other than those already included in a service covered by J&K GST Act brought under service Tax net.

Toll rate to increase by 5 paisa per kilograms in the existing rate of Additional Toll.
Toll rate on import of table birds to increase from ` 6.00 per kg to  ` 8 per kg.
VAT on cigarettes to increase from 30% to 40%.

Pipe fittings, hand made or machine made washing soap, cables of all types including industrial cable, ‘Aam Papad’ to be taxed at uniform rate of 13.5%

VAT system made dealer friendly.
Penalty equivalent to 25% of value of goods in case of an offence lowered, however, the penalty at the rate of twice of VAT to continue.

The legal heirs of registered dealers not to apply for fresh registration.


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