JK’s liabilities swell to Rs 55,358 crore in 2015-16
Bulging expenditures and fat salary bills accumulated Jammu and Kashmir's fiscal liabilities to Rs 55,358 crore in 2015-16 from Rs 48,314 crore in 2014-15, while the fiscal deficit during 2015-16 was Rs 8060 crore, an official report has revealed.
As per the Economic Survey Report tabled in the J&K Assembly last week, the overall fiscal liability of the government increased from Rs 48,314 crore to Rs 55,358 crore ending March 2016, thus witnessing increase of Rs 7080 crore in the overall liabilities.
"As a percentage of GSDP, the stock of accumulated fiscal liability increased from 54.95 percent to 60.27 percent at the end of 2015-16," the report mentions.
It further highlights the widening gap between the expenditure and revenue of the State.
The ES report reveals that "fiscal deficit has reached to the level of Rs 8060 crore. A major threat to the fiscal balance is the revenue deficit during the FY 2015-16 of Rs 640 crore as per AG Accounts calculations."
The fiscal deficit during 2014-15 was Rs 5608 crore which has widened by Rs 2452 crore, thus making the over fiscal deficit to touch Rs 8060 crore in 2015-16.
The reports cites rising salary bills and other expenditures for "widening gap" between the expenditure and revenue.
"There is a steep rise in salary and pension bills, administrative costs, burgeoning hidden subsidies including power deficit, rising interest liabilities and loan repayments, deficit on account of non-tax revenue, increased interest payments outgo," it states.
"The revenue expenditure has increased from Rs 31,503 crore in 2014-15 to Rs 37,197 crore in 2015-16, the major reason being periodical increase of salaries, regularization/appointment of new employees, power revenue deficit, interest liability and subsidies."
The report states that it is essential that different components of expenditure (both revenue and capital) are critically looked at and unnecessary expenditure is completely eliminated.
Further, it mentions, the buoyancy in non-tax revenue has not remained much attractive over the years.
"The policy has been to reform the power sector which constitutes the most significant component of state's non-tax revenue which has been realized to Rs 1477 crore much less than the budget estimates," it mentions.
It states that degradation of infrastructure created due to absence of adequate maintenance grants is another area of concern and needs to be addressed by way of providing adequate funds in the capex/revenue expenditure whichever is applicable on a fixed basis.
"Creations made in the new administrative units particularly by Revenue and Rural Development Department have adversely impacted the revenue expenditure," it adds.