Srinagar, Mar 9: Even as the Planning Commission is yet to decide on the Scheme of Financing for the annual plan 2010-11 for Jammu and Kashmir, the state government has decided to go ahead with the presentation of the budget on March 12 in the state legislature.
Officials in the state’s Finance Department told Greater Kashmir that the budget proposals largely comprises four main variables - state’s own resources for next fiscal, the monetary assistance from the Finance Commission, central assistance in the form of share from union taxes and Scheme of Financing.
Since the first three variables are already out, the state Finance Minister, Abdul Rahim Rather would present the budget on March 12 pending finalization of the Scheme of Financing by the Planning Commission. “The Planning Commission has indicated to the state government that there will be 10 percent step up for 2010-11 in the last fiscal plan size of Rs 5, 500 crore. The Finance Department is giving final touches to the budget proposals for 2010-11 and except for the Scheme of Financing it will incorporate all other financing components. It is a practice adopted in the past as well,” officials said.
Regarding SOF, the official said it would be decided in a meeting between the Deputy Chairman, Planning Commission, Montek Singh Ahluwalia and the state Chief Minister, Omar Abdullah after official-level deliberations.
“Under the Scheme of Financing the losses incurred by the state due to gap in revenue and expenditure, pattern of monetary assistance the state will be getting from the centre to bridge this gap and the central special assistance provided to the state, is discussed,” the official said.
The matter had already come for discussion in the Resource Meeting between the PC members and the state officials last month wherein the heads of different sectors made projections and demand of funds before the Planning Commission for the 2010-11.
“Following the meeting the state government had got an indication about the expected step up in the 2010-11 Plan. The SOF has a limited impact on budget proposal,” officials said.
Officials stressed that the government should be satisfied with 10 percent step up in the plan in view of the limited resources available with the state.
Pertinently the State Cabinet, which met in Jammu last week under the chairmanship of the Chief Minister, Omar Abdullah, had already given nod to various aspects of the Budget.
Meanwhile a high level team of state government officials Tuesday left for New Delhi to hold 2-day long crucial deliberations with the Planning Commission ahead of the annual plan allocation for the cash-starved state.
The team to be headed by the Chief Secretary and comprising of Commissioner/Secretary Planning, BB Vyas and secretaries of various administrative departments including, Agriculture, Power, Public Health and Engineering, Irrigation, Tourism and others would participate in the PC’s Working Group meeting to discuss the monetary assistance for the next fiscal. The commission would be represented by the Joint Secretary level officials from the Resource Division.
“There will be one-on-one meeting between the secretaries from state’s different sectors and subject experts from the PC’s Working Group on March 10. The meetings will discuss the targets achieved in the fields concerned and necessary steps needed to be taken vis-a-vis fund allocation for the next financial year to give impetus to the development efforts,” said an official of the states’ Planning and Development ministry.
It would be followed by a wrap up meeting between the Chief Secretary and PC member, VK Chaturvedi on March 11.
Officials said the meeting was likely to recommend sector-wise plan outlay, which would in turn determine the state’s tentative plan size for 2010-11.
While secretaries from different departments flew to New Delhi this afternoon, the Chief Secretary and Commissioner/Secretary Planning would be joining them tomorrow.
The 3-stage exercise would conclude with a meeting between the state chief minister, Omar Abdullah, and finance minister with the PC top brass including its deputy chairman Montek Singh Ahluwalia to finalize the annual plan.

Lastupdate on : Tue, 9 Mar 2010 21:30:00 Makkah time
Lastupdate on : Tue, 9 Mar 2010 18:30:00 GMT
Lastupdate on : Wed, 10 Mar 2010 00:00:00 IST