Rather presents ‘zero deficit’ budget
Govt needs Rs 33,853 cr for next financial year
Jammu, Mar 5 (VOS): Finance Minister, Abdul Rahim Rather today presented zero deficit Annual budget for 2012-13 in the Jammu and Kashmir Legislative Assembly.
In his speech, Rather said that during the next year’s budgetary proposals the main emphasis has been on to accelerate the momentum generated so far in the process of socio-economic and welfare of the people adding that the ultimate aim is to bring the major indexes of development of our state at par with All India averages.
“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,” he said.
“The Eleventh Five Year Plan is concluding on 31st March 2012. The next financial year shall be the first year of the Twelfth Five Year Plan. The Planning Commission of India is engaged in the process of finalizing its Twelfth Five Year Plan document and so are we. It is being hoped that this document shall significantly depart from the current Five Year Plan in its economic strategies. Emphasis on “Faster, Sustainable and More Inclusive Growth” has been clearly spelt out in the Approach Paper, unfolded by the Planning Commission. The contours of our successive annual plans shall become clear only after the Twelfth Five Year Plan document takes its final shape. Nevertheless, we hope that the finalization of the next year’s annual plan for our state shall be taken up by the Planning Commission of India in the coming few months,” he added.
The Finance Minister said that at the national level, there has been a setback in the process of economic revival due to deterioration in the global economic scenario. “It will cast its shadow on the national approach to the plan process. We may also be affected indirectly. However, in our State, we start with the advantage of the consolidation of peace and economic growth. Building further on this consolidation, we intend to incorporate new strategies in our next year’s plan of action. We are hopeful that our suggestions shall receive due attention of the Planning Commission at the time of finalizing our plan,” Rather said.
“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 said.
The Finance Minister said that the next year’s budget is also significant in its purely chronological context. “It is going to be the fourth consecutive budget of the present coalition government after it has, successfully, completed half of its popularly mandated tenure under the dynamic leadership of Janab Omar Abdullah, marked by his exemplary courage, vision and statesmanship,” he added.
On economic overview, he said, “I have laid the Economic Survey Report on the Table of this August House a few days back. It may be noted with satisfaction that our GSDP has been continuously on the rise. In terms of the latest available figures, the GSDP of our State for the year 2008-09 was I 42,315 crore at current prices. It rose to Rs 48,197 crore during the year 2009-10. During the year 2010-11, the GSDP further rose to 54,731 crore. The current year’s Advance Estimate has projected the GSDP figure at 62,365 crore. All these figures are based on the revised para-meters of the Central Statistical Office (CSO), adopted by it at the national level. At constant prices (base 2004-05), the corresponding GSDP figures work out at 34,664 crore for the year 2008-09, 36, 329 crore for the year 2009-10, 38,739 crore for the year 2010-11 and Rs 41, 367 crore for the current financial year,” he said.
“The Thirteenth Finance Commission had given us a target of achieving fiscal deficit of 5.3% for the year 2010-11. On the basis of our GSDP figures, the actual fiscal deficit for the last year comes to 4.3%. This is a considerable improvement over the target assigned to us,” he added.
The Finance Minister said that at current prices, per capita income figures were Rs 30,212 for the year 2008-09, Rs 33,665 for the year 2009-10, Rs 37,496 for the year 2010-11 and are estimated at Rs 41,833 for the current financial year. “The per capita income figure for our State at constant prices (base 2004-05) rose to Rs 26, 344 in the year 2009-10 in comparison to Rs 25,641 for the previous year. The per capita income further grew to Rs 27,607 during the year 2010-11. The Advance Estimate places this figure at Rs 28,932 for the current financial year,” he added.
On contribution of the Primary Sector, comprising Agriculture and Allied activities, to current fiscal’s GSDP he said, it is estimated at 19.83 percent. “The contribution of the Secondary Sector, comprising industrial production, manufacturing and mining is estimated to reach 25.93%. The contribution of the Tertiary Sector, comprising all types of services, is now estimated to jump to 54.24 percent,” he added.
The Finance Minister said the State’s own tax receipts were reflected in the Budget Estimates at Rs 4,183 crore. “I am happy to report that the same are now expected to touch Rs 4,800 crore. In comparison to the last year’s achievement of ì 3,483 crore, this figure indicates an improvement of Rs 1,317 crore. The growth rate over the last year’s realizations works out to around 38 percent. Out of the total tax receipts, the receipts of the Commercial Taxes Department alone amount to Rs 3,561 crore in comparison to the collection of Rs 2,504 crore made during the last financial year. Thus, out of a total increase of ì 1,317 crore in the tax revenue, the receipts of the Commercial Taxes Department alone exceed the last year’s collection by Rs 1,057 crore, indicating an improvement of 42 percent which is a record,” Rather added.
He said that main items of expenditure reflected in the Revised Estimates, a sum of Rs 22,854 crore is now classified as revenue expenditure in comparison to the Budget Estimates of Rs 22,752 crore. “Out of the total revenue expenditure, the plan revenue expenditure is estimated at Rs 1,108 crore in comparison to the Budget Estimates of ì 1,205 crore. The non-plan revenue expenditure is now estimated at ì 21,746 crore in comparison to the Budget Estimates of ì 21,547 crore,” he added.
The Finance Minister said that in the current financial year, three DA installments have been released in favour of the government employees and pensioners, including one installment which had become payable last year. “The government has also decided to pay 100 percent of the arrears of pay and pension revision following the adoption of the Sixth Central Pay Commission Award. These arrears shall be paid in five equal annual installments. After taking these factors into account, the total salary bill is expected to rise to Rs 11,654 crore, inclusive of the plan component of Rs 327 crore and grants-in-aid amount of Rs 644 crore which is mainly utilized by the autonomous organizations for the payment of salary to their employees,” he said.
The expenditure on pension and other retirement benefits was earlier estimated at Rs 2,651 crore for the current fiscal. The same is now estimated to reach Rs 2,780 crore, as per the Revised Estimates,” he added.
On budget estimates for 2012-13, Rather said, “The next year’s total receipts and expenditure are estimated at Rs 33,853 crore each. The total revenue receipts are estimated at Rs 29,948 crore based on the anticipated scheme of financing of the plan. These figures may undergo some variation when our plan outlay and its Scheme of Financing are finalized by the Planning Commission. The share of central taxes is indicated at the level of Rs 4,245 crore, as against the RE figure of Rs 3,691 crore in the current financial year. The total non-plan grants from the centre have been placed at Rs 4,496 crore, against the RE figure of Rs 4,858 crore in the current financial year, inclusive of the non-plan revenue gap grant under the Award of the Thirteenth Finance Commission,” he said.
Rather said out of the total revenue expenditure, salaries of the government employees account for the biggest chunk, estimated to reach Rs 13,115 crore, inclusive of the provision of Rs 700 crore for fresh DA installments, a plan salary component of Rs 369 crore and grants-in-aid of rs 658 crore.
“The expenditure on pensions including other retirement benefits, is estimated at Rs 3,025 crore. The total expenditure on salaries and pensions will, therefore, rise to Rs 16,140 crore during the next financial year.
Meanwhile, addressing a hurriedly called press conference after presenting the budget, Rather said, “It is a big challenge to be Finance Minister of a state like J&K. While there are lots of problems, the resources are limited. We have tried to put minimum burden on the general public in next year’s budget.”