Govt. fails to bring down fiscal liabilities, plan outlays thrown to wind
|| WANI JAVID
What could prove as the herculean task for the new government in the state after chief minister’s demise is to tame the irregularities in state finances which have began witnessing serious crises and pushing JK towards virtual economic breakdown. Such a situation can also pave ways for the state treasuries to run dry once again. The chaotic spending of money by the government departments this year while throwing to wind the plan outlays and other administrative norms would give tough time to the helmsmen to stop the tsunami from engulfing everything. Take this for an example. By March 2014, the fiscal liabilities were to the tune of Rs 44673 crore in the state.
The government failed to bring down the deficit in comparison to the gross state domestic product (GSDP) output, hence emerging as a matter of huge concern. It has been learnt that a large chunk of state’s revenues goes in the payment of interest on debts as government lifts the money from the Reserve Bank of India at a higher interest rate. In comparison to the GSDP the fiscal liability has been floating between 50-55 percent since past several years. The situation emerging at present goes contrary to what the government since assuming office was promising. It had promised last year that it would strive to reduce the fiscal deficit.
However, sources within the state’s finance ministry revealed that no serious measures were taken by the government to keep a check the fiscal mismanagement and get the state out of the financial crises which it has been witnessing since long. Sources said that various government departments have reportedly spent more money than their plan outlays for the current financial year. Such a situation besides proving worrisome and would also stir the economic balances and stabilities of the state government to the large extent. Reports informed that the revised estimates for the ongoing fiscal year have been on higher side for most of the departments as the funds have been spent on works which were not anticipated earlier and were even taken up without getting the administrative approval.
By March 2014, the fiscal liabilities were to the tune of Rs 44673 crore in the state. The government failed to bring down the deficit in comparison to the gross state domestic product (GSDP) output, hence emerging as a matter of huge concern.
Experts are of the opinion that the open market borrowing at the higher are of interests for funding its developmental plans would make the situation worse, it not tamed at an earliest. The fiscal deficit has also increased due to the inaction of the state authorities to increase the tax and the nontax revenues. Further, government’s increased dependence on loans from the GOI is leading the state towards the brink of the economic breakdown. Another reason for the growing fiscal deficit is the internal debts of the state that have increased much as compared to that of the previous years. Furthermore, what could have generated revenue for the state was the power tariff collections. But this too is contributing meagre to the state exchequer.
It has been earlier reported how the PDD has failed to meet the targets and incurred losses of thousands of crores. Eighty-year-old moderate Hurriyat leader Abdul Gani Bhat, an old classmate from Aligarh Muslim University and Mufti’s lifelong friend despite political differences, sees much promise in Mehbooba. The wiry old separatist, who defied protocol on January 8 to travel to Fairview Cottage, Mufti’s official residence on Srinagar’s Gupkar Road, to pay his respects, says, “She is a woman with imagination. She will find answers.” A lot, he says, will depend on the future of the Indo-Pak dialogue. Successful talks will translate into success for Mehbooba and the alliance, Bhat says. “Otherwise I have only prayers for her,” was his ominous postscript.
