Advisor to Governor, KK Sharma Sunday urged Government of India to provide special dispensation to the Himalayan state of Jammu and Kashmir in 15th Finance Commission (FC) award.
Speaking at Conclave of Himalayan States in Mussoorie, Uttarakhand,the Advisor Sharma, according to an official spokesperson, said that IndianHimalayan Region States have some common issues to be addressed in the15thFinance Commission.
Union Finance Minister, Nirmala Sitharaman; Chairman,Finance Commission; VC, Niti Ayog among others were present in the Conclave.
“It’s an appropriate platform where we may adopt anintegrated stand before 15th FC in respect of demands of our respectiveregions,” he said. “15th FC is unique initself as it comes in the context of few historical, fiscal and economicdevelopments in the country as well as in the State. This is the first FC afterthe abolition of the Planning Commission and after the introduction of theGST,” Advisor Sharma said.
“In ‘Memorandum presented to the15th FC’—where we havepresented a comprehensive picture of the various problems faced by our Statewhich we would like the Commission to address in a sympathetic manner.”
“Some States—who,provide higher revenue to the centre tend to claim a higher share. However,Finance Commission has to decide the formula and in order to maintain equityand parity, there has to be a tilt towards the worse-off States that wouldotherwise find it hard to develop,” he said. “Given our unique resources, awealth of specialized talent and the rich traditions, the State has thecapacity to bounce back and move forward steadily on the path of developmentand prosperity. Return of peace and rule of law for achieving these objectivesand therefore we need the Commission’s full support in this endeavour.”
“Jammu and Kashmir isthe 5th largest State of India occupying 6.76% of the country’s geographicalarea. The State occupies 19th rank in population as per 2011 census. Populationdensity is 124 and thus ranks 28th among other States/UTs. States with largeareas need more funds to compete with those that have advantage in theseareas,” he added.
“The Climate Changeis having a serious impact on the overall climatic conditions and its impact isvisible in the form of receding glaciers, reduction in rainfall, intense heatwave and severe winters. Horticulture crops like apples are also showingdecline in production due to decline in snowfall,” he said.
Giving details about the disaster management of the State,the Advisor said that it is very distinct from the rest of the country withrespect to topography, economy, social setting and strategic location. Thestate is a multi-hazard prone region facing the threat of natural disasterslike earthquakes, floods, landslides, avalanches, cloudbursts, high-velocitywinds, snowstorms. “The existing funds are inadequate to undertake disastermitigation/management activities. There is a need for continuous support systemfor undertaking risk analysis, mapping of vulnerable areas, works programmes,capacity building and coordination with national and international disastermanagement agencies,” he said. “There is also an urgent need toinstitutionalize the mechanism to effectively deal with the disasters andnatural calamities in a coordinated manner at the time of emergencies. Fundsamounting to Rs 715 crore are projected/proposed to set up and operationaliseemergency operation centres, robust communication networks, decision supportsystem and procurement of rescue equipment.”
About water bodies, the advisor said that for preservationof our most famous water bodies namely Wullar, Tsomoriri, Mansar-Surinsar andDal lake special attention required. In our memorandum, we have indicated theextent of help that is required. This investment is crucial and unless thestate is supported by a generous award of the Fifteenth Finance Commission, wewould be risking posterity and its future.
The Advisor further informed that J&K contributesapproximately 0.76 per cent to national GDP and ranks 21st in the list ofcontributing states. J&K State has a deficit budget which carries forwardliabilities, debt non-sustainability and debt in perpetuity. The grant-in-aidfrom union government in absolute terms remains around 43 per cent vis-à-vistotal revenue receipts and approximately 38 per cent vis-à-vis totalexpenditure. Major portion of the public sector investment goes tonon-developmental activities around 40%. The private sector in J&K State isnot much developed mainly due to infrastructural deficiencies like inadequateelectricity, lack of railhead in Kashmir valley to connect with rest of thecountry and adverse law & order problem. J&K has been a specialcategory state and depends on higher Central transfers for financing itsrevenue expenditure as it has relatively lower fiscal resources.
“We tried our best to comply with the guidelines of GoI andrecommendations of the various Finance Commissions. Therefore, it necessarilyrequires special attention of the Finance Commission while deciding its Awardfor the State,” he said, adding “Our request to the Commission would be to begenerous in supporting us.”
The Advisor invited the Finance Commission to visit theJammu and Kashmir for profiling its developmental and financial scenario.