J&K’s liabilities swell to Rs 68,204 crore in 2017-18

In 6 years, liabilities rise by 88%

Mukeet Akmali
Srinagar, Publish Date: Dec 16 2018 11:48PM | Updated Date: Dec 16 2018 11:48PM
J&K’s liabilities swell to Rs 68,204 crore in 2017-18Representational pic

Jammu and Kashmir’s liabilities has swell to Rs 68,204 crore in 2017-18 thus witnessing an increase of over 88% in last 6 years.

According to official figures of finance department, of total Rs 68,204 crore liabilities, 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.

Since last finance year, liabilities have increased by Rs 7,531 crore. In 2016-17 liabilities were Rs 60,673 crore which has increased to Rs 68,204 crore.

In comparison to 2011-12, Rs 36,256 crore the state’s liabilities have witnessed an increase of whopping 88 percent in last six years.  In 2012-13 liabilities recorded was Rs 40,248 crore, 2013-14 Rs 44,646 crore, 2014-15, Rs 48,314 crore, Rs 2015-16, Rs 55,346 crore.

“The overall fiscal liability of the government increased from Rs 60,673 crore to Rs 68,024 crore in 2017-18. As a percentage of GSDP, the stock of accumulated fiscal liability remained stagnant at 48 percent at end of 2017-18 reflecting a good sign towards progress related to debt sustainability,” the official data reveals.

“The three fiscal parameters - revenue deficit, fiscal deficit and outstanding liability - indicates the extent of overall fiscal balance in the finances of the state government during the specified period. The nature of deficit is an indicator of the prudence of budgetary policy of the state government. Another useful measure of the deficit-base in a state’s fiscal policy is the State’s Own Deficit (SOD),” it adds.

A senior finance department official blamed the meager revenue generation avenues, power purchases and bulging expenditure on salaries as the main contributor to the increasing liabilities of the state.

“Our revenue component is lesser in comparison to what we spent, it adds up liabilities over the period of time,” he said adding that though in comparison to gross state domestic product our liabilities are showing downward trend.

He said 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,” he added.

To mention, state administrative council Saturday passed Rs 88911 crore state budget for the fiscal 2019-20.

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