Delay in govt formation brightens chances for Vote on Account

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Delay in govt formation brightens chances for Vote on Account

1/27/2016 11:11:20 PM

In the event of inordinate delay on the part of PDP and BJP to again form a government in Jammu and Kashmir after the demise of Mufti Mohammad Sayeed on January 7, there is no guarantee for holding a budget session of the state Assembly. The previous PDP-BJP coalition government had proposed a 52-day long budget session which was to begin from January 18 with the address of Governor N N Vohra to the joint session of the state legislature. The budget session has been postponed. Despite the fact that Vohra had invited both PDP and BJP after the demise of Mufti Sayeed to form the government, the two parties have not been able to do so. In fact, the onus lies on PDP which has 27 members in the Assembly against 25 of BJP. In spite of the fact that Mehbooba Mufti has been authorised to form the government by the senior PDP functionaries, she has not been able to do that leaving scope for a number of speculations which include holding of fresh elections or Mehbooba planning to forge alliance with NC. Even if the government formation is delayed, the budgetary exercise has to be undertaken at all costs. And reports indicate that the state Planning and Finance Departments, which are responsible for entire budgetary exercise-be it the full budget or Vote-on-Account (VoA)-have started the exercise for taking VoA for the state for the first six months of 2016-2017, either by the new government or by the Governor depending upon the situation that may shape itself within a week or so. Vohra has directed Chief Secretary B R Sharma to hold an urgent meeting with the Finance Secretary and all Administrative Secretaries on January 28 and 29 to finalise Revised Estimates for 2015-16 and the Budget Estimates for the next financial year.The governor will himself hold a meeting on January 30 with the Chief Secretary, Finance Secretary and all Administrative Secretaries to finalise the Budget for financial year 2016-17.. The Governor has asked the Chief Secretary to prioritise demands of all departments in respect of ongoing works as well as new ones. Section 92 (1) of state Constitution grants legislative and executive powers to the J&K Governor. Due to non-existence of a political government in the state, the process to finalise the Budget Estimates for the next financial year cannot be put on hold.The 52-day-long Budget session proposed by the previous PDP-BJP government was cancelled due to delay in formation of a new government following the death of Mufti Mohammad Sayeed on January 7. The governor was scheduled to address the joint session of the legislature on January 18 while the budget proposals were to be presented on January 22. A situation similar to the one that was created in February 2015 is likely to resurface in Jammu and Kashmir because the delay in the government formation in the state may weaken the chances of holding annual budget .Even if a new government assumes office within next three weeks it too my go in for Vote-on Account to meet the state's requirements for few months. If the new government is formed next week, there are little chances of holding full-budget this time and government would go for Vote-on-Account as the new finance minister won't get ample time for preparatory exercise of the annual budget. The full-budget will be presented by the government whenever it is formed and it has to be formed within next six months otherwise after the expiry of Governor's rule,that can last upto six months,the state may be placed under the President's rule. Even if next Government is formed in the coming days, it won't be possible for the finance minister to present the budget by March end due to paucity of time as it requires a detailed exercise..Annual budget or Vote-of-Account has to be passed before March every year to avert any financial crisis. The Vote-on Account does not require separate debate on every department and it authorises government departments to make usage of funds till the annual budget gets passed.The finance minister can seek approval of the legislature for a certain sum to meet the government expenditures for a few months or upto six months.Under the constitution, the governor, in the absence of the elected state government, can accord approval to the Vote on Account to enable various departments to function and avoid a financial crisis.

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