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| To woo investors, govt making JK’s financial system investment friendly | | | UMAR SHAH
EARLY TIMES REPORT
JAMMU, Sept 2: As in the next month, a year will pass since Jammu and Kashmir was turned into a Union Territory; there are series of measures the government here is mulling to take with primary among them is to make the financial system of the erstwhile state investment friendly.
Sources within the finance department divulged that reforming the financial structure and simplifying the system are the core initiatives which will ultimately provide an enabling environment gradually so that economic development gears up in the union territory.
It was meanwhile informed that various measures stand already taken which will have overall positive impact shortly upon the state finances.
The government has enforced effective liquidity consolidation mechanisms to address inflow/ outflow mismatches on a day to day basis. The reforms being initiated take some time to permeate down the levels.
It was further revealed that elucidating the JK finances would be a herculean task and would require more time than what is being expected from the Jammu and Kashmir government over the issue.
However, insiders divulge that the state authorities are in no mood to take any measure that would simplify the state finances anytime soon. Furthermore, there hasn’t been any action taken to make the JK’s financial set up more investment friendly.
Sources said that the authorities in the finance department while providing an excuse of repercussions of making the financial set up investment friendly submit that the finance department is poised to ensure fiscal and financial reforms by complying the provisions of FRBM Act, 2006. It is being stated that due to the recurrent fiscal stress over the past few years, the treasury operations in the state would get affected, ultimately affecting the normal business activities in the state. Since last year, this trend has been reversed by focusing on fiscal deficit corrective measures so that transparent and evenly flow of treasury operations are ensured to help smooth business activities. It is worth mentioning here that it is a fact that the World Bank in its report on assessment of state implementation of business reforms has put the Jammu and Kashmir state at serial no. 29 in its ranking in the country.
“A year will pass in October since Jammu and Kashmir was declared as a union territory. There are a series of measures which are being underlined and primary among them is to make the financial setup more investment friendly so that the investors from the outer world could come and launch ventures without the hindrances the investors used to face in the past,” says an official.
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