news details |
|
|
| Rs 15000 Cr and more , Rathers make case before FC | | Seeks funds for tapping hydro-electric potential, natural resources | | Early Times Report
SRINAGAR, JULY 01 – Minister for Finance, Law and Parliamentary Affairs, Mr. Abdul Rahim Rather has said that peculiarity of J&K’s chronic backwardness and diverse geo-climatic and topographic factors call for enhanced financial support from 13th Finance Commission. He said State needs liberal assistance for exploiting its rich hydro-electric potential and natural resources.
The Finance Minister said this while giving a resume of the memorandum the State has submitted to the 13th Finance Commission for liberal financial award.
Referring to the formidable challenge of development, Mr. Rather said the State has to reconstruct an economy ravaged by two decades of militancy and terrorism and at the same time deliver quickly on growth intensification and poverty alleviation. “This is the most sustainable solution to restore peace and order in the State. The systems and processes of fiscal federalism that work for rest of the country are not necessarily optional in J&K for socio-political and economic reasons,” he added.
Specifying J&K’s distinct economic disadvantages arising out of remoteness and poor connectivity, a weak resource base, poor infrastructure and a threatening law and order situation due to militancy, the Finance Minister said all these factors have resulted in a classic backwardness trap of low economic activity, employment and income generation.
Mr. Rather said the State has already submitted a detailed memorandum to the Commission explaining broad features, issues and problems peculiar to the economic structure of the State and also important features of the State’s finances. “Separately, we have uploaded budgetary, financial and other details as per formats prescribed by the Commission. I am sure that the contents of our memorandum will receive due consideration by the Commission at the time of finalization of their awards,” he hoped.
While referring to the 20,000 MW hydroelectric generation potential, Mr. Rather said a case has been made for compensation to the State for losses on account of Indus Water Treaty by way of liberal funding for indigenous power generation. “Despite 20,000 MW potential in hydel energy, we cannot harness it optimally because of the restrictions imposed by Indus Water Treaty, which deprives the State of its right over usage of the waters of Indus, Jhelum and Chenab in perpetuity,” he said and added that the Treaty also deprives the State from using our waters for irrigation except to limited acreage of 13.96 lakh which is about to be exhausted in near future.
He urged the 13th Finance Commission to address this issue afresh and find a just and lasting solution. “We feel that pending a final quantification of a proper compensation package, the Commission may allocate a sum of Rs. 15,000 crore exclusively for full funding about 1,500 to 2,000 MW of hydel capacity under the State sector so that we are not required to raise any loans from the market,” he explained.
Elaborating on need for genuine conservation and developmental needs of forests, Mr. Rather requested the Commission to allocate special resources for maintenance and upkeep of these national and global assets as the meager plan and non-plan resources of the State cannot do justice to the full requirements of maintenance, upkeep and development of these forests. “The State used to earn Rs.100 crore from extraction and sale of timber from these forests with potential to increase the revenue further. In view of the ban imposed by the Supreme Court, the revenue from forests has considerably dwindled,” Mr. Rather said.
Flagging the trio of handicrafts, tourism and fruit industry as the three important plus points of J&K’s fragile economy, Mr. Rather said the State has been endowed with numerous attractive tourist destinations which attract lakhs of visitors. “For this, we have to maintain high class infrastructure and facilities at all such places and on tourist routes. We continuously need to upgrade these facilities,” he said.
Strongly putting forth case of promoting handicraft sector, which is a major foreign exchange earner, Mr. Rather said government is striving to strengthen its revenue-earning base and sustaining wide base of employment.
On developing fruit industry of the State, the Finance Minister said even though apple production is worth Rs.1,700 crore, massive government support is needed to sustain the industry.
Mr. Rather said the total tax collection has been among the best in the country. “The total tax collection as a ratio of our GSDP is 7.1 per cent in comparison to all-states’ average of 6.2 per cent. “The ratio of total tax and non-tax revenue collection as a ratio of GSDP is 10.2 per cent in comparison to corresponding all-states’ average of 7.5 per cent,” he added.
On the issue of criteria of devolution of resources, Mr. Rather requested the Commission to kindly keep in mind that the average per capita cost of sustenance in J&K would work out to be amongst the highest in the country. “This factor would also be responsible for a large BPL population of 22 per cent in our State, as per BPL survey conducted in 2008,” he said, adding cost of sustenance and BPL population should be recognized as important consideration for devolution of resources. He also said that the remoteness of J&K State from the main centres of economic activities involving extra cost of transportation should also be factored into devolution mechanism.
While dealing with the matters pertaining to FRBM Act, Mr. Rather said due regard should also be given to the two adverse factors of global meltdown and Sixth Central Pay Commission.
On the issue of grants allocated to Panchayats, Mr. Rather said due regard should be given to peculiar law and order conditions prevailing in the State. “We intend to hold panchayat elections as early as possible. Any delay on this account should not be taken as a willful breach of the condition,” he said, while urging the 13th Finance Commission to find a way to release the amounts of grant-in-aid for the panchayats recommended by the 12th Finance Commission, which have been withheld as panchayat elections could not be held during the period of award of the 12th Finance Commission.
The Finance Minister said the government has already projected sectoral needs of other crucial sectors in the memorandum to the 13th Finance Commission and asked for sympathetic consideration of the Commission on roads, agriculture, education, health and housing. “We have also projected special needs of buildings and computerization for judiciary, legislature complex, MLAs’ hostel, Secretariat, district administration and other field offices,” he said.
Mr. Rather also flagged before the Commission issues dealing with creation of corpus for introduction of New Pension Scheme, one time 13th Finance Commission support for correcting overdraft with J&K Bank and bailing out the State from the adverse impact on account of the Central Sixth Pay Commission Award.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
