On each passing day, Jammu and Kashmir's debt will increase by Rs 24.93 crore in the next fiscal year as the state will be forced to borrow money from institutions through RBI to manage its daily affairs.
According to budget 2019-20 projections, J&K will be spending Rs 243.59 crore daily of which Rs 24.93 crore will be debt borrowed from financial institutions in the next year. Of which it will borrow Rs 2.19 crore through institutions and Rs 18.63 crore as other borrowings from financial institutions through RBI.
J&K would be spending a whopping Rs 88911 crore in the next fiscal starting April 1, 2019, and two-thirds of it would be revenue expenditure spent on implementing developmental activities valuing slightly less than one-third of the total budget.
Of total expenditure highest amount of money will be spend on the salary bill. Government will be spending Rs 71.23 crore daily on salaries, Rs 17.48 crore on pension, Rs 64.11 crore on works, Rs 1.01 crore on maintenance of assets per day.
On power purchase, Rs 21.09 crore, interest on borrowings Rs 19.01 crore, security expenditure is Rs 4.86 crore, loan repayment Rs 5.77 crore and other expenses Rs 39.02 crore a day.
Most of the revenue will come from the central government by way of share of taxes, grants and the centrally sponsored schemes.
Central taxes are calculated at Rs 41.10 crore per day, central grants Rs 101.77 crore a day. Out of state's own share, it would generate taxes and non- taxes of Rs 35.43 crore and Rs 16.62 crore per day respectively.
With 10 percent of the total expenditure being borrowed money, J&K's liabilities are destined to pile up further in future.
According to official figures of finance department state's liabilities has touched Rs 68,204 crore, Rs 37,418 crore are internal debt, Rs 1405 crore is loans, advances for central government, Rs 38,823 crore total public debt, insurance and pension funds Rs 909 crore, provident funds Rs 20,010 crore.
Over the next year, state will spend Rs 6941 crore as an interest payment. Besides, it will book an expenditure of Rs 7700 crore on power purchase; Rs 764 crore as maintenance and repairs of the assets it has created; Rs 3722 crore as the grant in aid and additional Rs 3000 crore as part of its commitments towards the CSS.