>>Provisions for infra development, employment
>> Rs 518 cr for promoting tourism, developing new destinations
>>Rs 923 cr for developing industrial estates, providing GST refunds
>>Rs 9,400 cr for subsidies, budgetary support for power purchases
>>Rs 3,983 cr for road, bridge construction
>>1,484 crore for completing Smart City projects, flood recovery projects
SRINAGAR: Union Finance Minister, Nirmala Sitharaman, introduced the Budget of Jammu & Kashmir for 2024-25 in Parliament on 23rd July, 2024. The Appropriation Bill on the Regular Budget for 2024-25 will be considered by the Lok Sabha and Rajya Sabha in this regard.
Finance Department of the UT Government had drafted the Regular Budget for the current year. For this, the Department had assessed the revenue receipts of the UT Government from GST, motor spirit tax, excise, and stamp duty. Further, the non-tax revenue from electricity and water supply, mining royalty, timber sales, annual rent from industrial lands, etc were also examined. The own revenue of the UT Government has been estimated at Rs. 21,860crore.
A detailed analysis of the fiscal situation of Jammu and Kashmir was carried out by the Finance Department to address the legacy challenges which include high staff strength, low revenue base, and high debt load. The high fiscal stress caused by the committed nature of the major expenditures has increased the UT’s dependence on central grants. To address these challenges, the UT government has increased tax and non-tax revenues through improved GST return compliance, improved billing and collection efficiency, increased dealer registration, and transparent excise auctions.
All administrative departments also intensified efforts to harness central funds by enhancing execution speed. This led to a sharp increase in receipts of funds under centrally sponsored schemes.During the last financial year, the UT government also stringently enforced borrowing limits and curtailed the culture of overdraft. With close monitoring of public debt, the UT government was successful in tapering down the off-Budget borrowings. The government has restrained revenue expenditure through austerity measures and biometric verification of beneficiaries. The UT Government also pursued Government of India for increasing central financial assistance.
Lieutenant Governor Manoj Sinha, Chief Secretary, Atal Dulloo and Principal Secretary Finance, Santosh Vaidya led the UT’s efforts in this direction. Crucial meetings were held in June and July 2024 in Ministry of Home Affairs and Ministry of Finance to review these demands of the UT Government. Union Home Minister and Union Finance Minister personally reviewed the fiscal management of the UT Government in recent months.
Considering the challenges faced and the strenuous efforts made by the UT government, Government of India has agreed to provide special financial support to Jammu and Kashmir coupled with reforms to come out of the fiscal stress. Accordingly, the Union Budget which was also laid before the Parliament provides for a special central assistance of Rs.17,000 crore for Jammu and Kashmir. The Union Government has agreed to provide for the salary, pension and other costs of Jammu and Kashmir Police for which an allocation of Rs 12,000 crore has been made in the annual budget. In addition, a lump sum special grant of Rs 5,000 crore as additional central assistance is being provided in the current financial year.
As a result of this Rs. 17,000 crore of special package, the fiscal deficit to GDP ratio of Jammu and Kashmir will reduce to 3.0% in the financial year 2024-25. This special package will be part of the overall central assistance which is estimated at Rs. 67,133 crore during 2024-25. This unprecedented assistance would lead to complete improvement in fiscal position enabling the Government of Jammu & Kashmir to work towards fulfilling the developmental needs and aspirations of the people, while maintaining stable fiscal health.
The budget of Jammu and Kashmir for 2024-25makes provisions for the ongoing initiatives for infrastructure development, sustainable agriculture, new industrial estate, PRI level works, employment generation, developing tourism, and social inclusion. During preparation of the interim budget proposals, consultations were held with all the Departments and various stakeholders to provide for ongoing initiatives and arrive at realistic budgetary numbers. For finalizing expenditure proposals, assessment of financing needs of infrastructure projects, social and economic measures undertaken by Departments was undertaken.
The budgetary exercise focused on the imperative of advancing the cause of the greater collective good within the realistically realizable resources.
The budgetary estimate for the financial year 2024-25 is approximately Rs. 1,18,390 crore, including a revenue expenditure of Rs. 81,486 crore and a capital expenditure of Rs. 36,904 crore.
Major Outlays
Major outlays under the Jammu and Kashmir budget for 2024-25 include Rs. 9,400 crore for subsidies and budgetary support for power purchases and agreements; Rs. 3,983 crore for road and bridge construction under various schemes; Rs. 1,875 crore for rejuvenating school infrastructure and services through Samagra Shiksha Abhiyan and related funding; Rs. 1,808 crore for local area development works under decentralized governance; Rs. 1,714 crore for rural tap-water connectivity under the Jal Jeevan Mission; Rs. 1,484 crore for completing Smart City projects, flood recovery projects, sewerage treatment plants, and new townships; Rs. 1,430 crore for comprehensive social security coverage and women empowerment schemes; Rs. 1,317 crore for strengthening health sector infrastructure under the National Health Mission; Rs. 1,104 crore for housing construction for poor rural families under PM Awas Yojana- Grameen; Rs. 1,068 crore for salaries, food grains, cash assistance for Kashmiri migrants, and construction of transit accommodations; Rs. 1,021 crore for transforming agriculture through the Holistic Agriculture Development Programme; Rs. 923 crore for developing industrial estates, providing GST refunds, and promoting trade; Rs. 776 crore for equity support for hydroelectric projects to provide stable revenue and cheaper power; Rs. 586 crore for universal health insurance coverage; Rs. 500 crore for drugs, machinery, and equipment for health institutions; Rs. 475 crore for upgrading infrastructure of colleges and universities and rolling out the National Education Policy; Rs. 518 crore for promoting tourism, developing new destinations, and constructing ropeways; Rs. 445 crore for improving sanitation and waste disposal facilities; Rs. 390 crore for flood management projects for the river Jhelum; Rs. 405 crore for self-employment schemes, Start-ups, and support for self-help groups; Rs. 179 crore for security-related infrastructure, police housing, and installation of CCTVs; Rs. 150 crore for solar rooftops and solar pumps; Rs. 335 crore for sports infrastructure, heritage preservation, and tribal welfare initiatives; Rs. 100 crore for revitalizing Regional Rural Banks and Cooperative Banks; Rs. 500 crore for MGNREGA works at the Gram Panchayat level; and Rs. 401 crore for development of Dal Lake, afforestation, wildlife management, and preservation of protected areas.
J&K Budget Highlights
The Competitiveness Improvement of Agriculture and Allied Sectors project in Jammu and Kashmir (JKCIP) will be implemented with an estimated USD 100 million loan from the International Fund for Agricultural Development (IFAD). All 29 projects approved under the Holistic Agriculture Development Programme will be executed with a total allocation of Rs 5,013 crore over five years. An additional 25,000 MTs of Controlled Atmosphere (CA) storage capacity will be added, and a Chrysanthemum theme park will be developed at Cheshmashahi, Srinagar.
Sixty thousand backyard poultry units will be established in rural areas, along with Micro Food Processing Units to create employment opportunities. Six grain storage units will be constructed in districts lacking adequate facilities under the “World’s Largest Grain Storage” scheme. Twelve thousand additional Self Help Groups (SHGs) will be formed, and 80,000 houses will be constructed under Pradhan Mantri Awas Yojana Gramin (PMAY-G).
The Integrated Watershed Management Programme (IWMP) will cover 26,000 hectares, and twelve new off-beat tourist destinations—six in Jammu and six in Kashmir—will be developed, including Keran as a border tourist village and Tosamaidan and Sitharan as circuits. Seventy-five identified heritage and cultural sites will be revived and restored, and eight cultural centers will be established.
Forty-six estates will be developed to achieve the ‘Made in Jammu and Kashmir’ goal. Under the Jammu and Kashmir Rural Employment Generation Programme (J&K REGP), 1,372 units are targeted for setup during 2024-25. A new Start-up Policy will be introduced to create an entrepreneurship ecosystem.
Two Cancer Institutes in Jammu and Srinagar will be fully operational by 2024-25, and DNB seats will be increased to 400 with ABHA IDs created for 1.35 crore people. A hundred percent screening for hypertension and diabetes in the 30+ age group will be conducted, and AIIMS Awantipora is expected to be functional by March 2025. A new Nursing College will be set up in Handwara, and efforts will be made to achieve TB-free status in remaining districts.
Two thousand one hundred seventy-six new kindergartens will be established, with 18,499 schools receiving sports equipment, 2,584 schools equipped with ICT labs and smart classrooms, 43 robotic labs, and 30 virtual reality labs. Science centers will be set up in 100 schools, and vocational education will be introduced in 554 new schools. Twenty national sports events will be organized, and placement drives for 1,000 pass-outs will be held in collaboration with major businesses and industries.
A new initiative will create an ecosystem for enterprise promotion and self-employment, generating over 5 lakh opportunities and expanding investments through credit support. New age courses will be introduced in 10 Industrial Training Institutes, and outreach and counseling activities will be conducted through Model Career Centers (MCCs). All persons with disabilities will be covered under the Nirmaya Health Insurance Scheme, and 11 Shakti Sadan and 4 Sakhi Niwas will be established. Self-employment schemes will target 7,708 women beneficiaries with 1,502 units.
Eighty schools in tribal areas will be transformed into smart schools, and an additional 3,014 MW installed capacity will be added by 2026-27, with a cumulative increase of 10,714.50 million units per annum. The creation and augmentation of 38,150 KVA Distribution Transformers and replacement of 14,000 Ckm of dilapidated LT bare conductors will improve power supply, including in the remote areas of Gurez.
Five thousand kilometers of road length will be black-topped, and 194 new projects sanctioned under NABARD will be executed at an estimated cost of Rs 1,023.42 crore. Rs 1,000 crore in new road and bridge projects will be undertaken under NABARD loan assistance. Completion of 60 ongoing bridges is targeted, and 4.26 lakh households will receive Functional Household Tap Connections (FHTCs) to achieve 100% tap water coverage.
The Shahpur Kandi Dam project will be commissioned, benefiting Jammu and Kashmir with 1,150 cusecs of irrigation water for 32,186 hectares of land. The balance work of the Tawi Barrage will be completed, and 197 minor irrigation schemes, creating irrigation potential of 38,723 hectares, will be finished. All projects under the Smart City mission will be completed, and the Western Foreshore Road along Dal Lake, Srinagar, will be constructed.
Two hundred e-buses will be introduced under the PM e-Bus Sewa scheme, and an Inter Model Station (IMS) in collaboration with NHAI will be developed at Katra. The Master Plan for all 78 cities and towns will be finalized, and the sewerage network for houseboats in Dal-Nigeen Lake will be developed.
Innovative water conservation techniques will be implemented through the Van se Jal, Jal se Jeevan approach, promoting sustainable agriculture and revitalizing traditional water bodies. Conservation and rejuvenation of Wular Lake will enhance local livelihoods through ecotourism.
Completion of 1,500 flats as transit accommodation for Kashmiri migrant employees and filling of the remaining 276 posts under the PM Package for Kashmiri Migrants will be achieved. e-KYC of all beneficiaries under the Public Distribution System will be completed, and Smart PDS will be rolled out.
Four thousand agricultural pumps will be replaced with solar pumps under PM-KUSUM, and around 4 MW of rooftop solar power plants will be installed on government buildings. Twenty-two thousand four hundred ninety-four government buildings will be solarized in a phased manner. Five thousand improved biomass cook-stoves will be provided in tribal areas, and solarization of all routes and camps of the Shri Amarnath Ji Yatra will be undertaken.
The Bio-Technology Park at Kathua will be operationalized, and Young Scientist Awards and Fellowships will be given to outstanding researchers. The Institute of Driving Training and Research (IDTR) at Kot Bhalwal, Jammu, and the Institute of Inspection and Certification Centre (ICC) at Samba, Jammu, will be completed. The Vehicle Location Tracking Platform (VLTP) will be implemented for women’s safety in public transport vehicles, and Automated Testing Stations (ATSs) will be established for testing motor vehicle fitness in the private sector. A modern bus terminal will be constructed at TRC, Srinagar.
