Srinagar, Jan 20: Finance minister Abdul Rahim Rather Wednesday said the state was spending Rs 7500 crore annually on the wages of employees, where as the overall annual income of the state was only Rs 4,000 crore—that too if all targets were met.
 “This means the employees’ wage bills are almost twice our state income,” said Rather while addressing a gathering ahead of distributing the Kissan Credit Cards (KCCs) on behalf of Ellaquai Dehati Bank (EDB) at the Institute of Management and Public Administration here.
 “Even as they are being paid handsomely, they are still not satisfied. Everyday they demand more increments. In fact right now what is their demand would cost the state a whopping Rs 4200 crore more,” said Rather, who was the chief guest on the occasion.
 He said during the current fiscal the government tried its best to help the employees through several incentives. “Sixth pay commission is an example. There are many states which have yet to implement it but we did implement it,” he said.
 While interacting with journalists on the sidelines of the function, he said the government can provide arrears to the employees only when central government provided them the required funds. He said the government had already talked this issue with the Finance Commission.
 “Till then employees should keep patience. Strikes would serve no purpose,” he said, adding that government was not meant for employees only but unemployed youth as well.
 Rather said the government was doing its best for the economic development of the state, “however we don’t have enough resources available.”
 He said banks had an important role to play for the economic development of the state, especially in rural areas.
 Regarding EDB, he said the bank had deposits of Rs 226 crore in 2006, of which it had invested Rs 58 crore in the state that accounted for 16 per cent credit deposit ratio.
  “And now the deposits have increased from Rs 58 crore to Rs 150 crore, which means 38 per cent credit deposit ratio,” Rather said.
  “Though I am not satisfied with it, for credit deposit ratio should exceed 60 per cent. But I am happy that the trend is increasing. Next time it should go above 50 per cent,” he said.
 He said it was the duty of the banks to invest the money mobilized through deposits into the state for its economic development. “More they invest in the state, more the state will progress,” he said.
 Talking about agriculture lending, he said the Reserve Bank of India had asked the banks to invest at least 18 per cent of the loans into agriculture.
  “There are 39 banks operating in the state, but unfortunately nobody has followed the words of RBI. However, EDB has crossed the target of 18 per cent,” he said.
 He congratulated EDB for distributing 7000 KCCs amounting to Rs 35 crore at 7 per cent rate of interest among farmers. “No one has given such benefit before. Besides, whatever loans farmers would receive on this account will go into agriculture,” he said.
 Rather called upon the banks to try and keep banking procedures as much simple as possible for the people, adding that whatever help people may need from the banks, they should be provided with.
 He said farmers deserved due respect, for they were serving the entire nation. “It is a matter of pleasure for me to be among farmers, not because I am a villager, but because farmers are backbone of any nation. It is because of their hard work that we are surviving,” he said, adding that however farmers were facing a lot of difficulties at present. He assured them of full support from the government.
 He said the farmers should utilize the loans only into right direction. “A loan is given for a certain purpose, so it should be utilized for that purpose only,” he said, adding that it should also be kept in mind while receiving loan that it has to be returned.

Lastupdate on : Wed, 20 Jan 2010 21:30:00 Makkah time
Lastupdate on : Wed, 20 Jan 2010 18:30:00 GMT
Lastupdate on : Thu, 21 Jan 2010 00:00:00 IST