J&K in debt, liabilities mount over Rs 83,000 crore

Jammu and Kashmir has added Rs 4512 crore liabilities during fiscal 2019-20 taking the total tally of debt over Rs 83000 crore, which as per the experts is a cause of concern for the fiscal health of the newly created Union Territory.

As per the official figures, the total liabilities of Jammu and Kashmir are Rs 83,573 crore in 2019-20. In the corresponding fiscal, the total debt was Rs 79061 crore which means an increase in liabilities by Rs 4512 crore during the last fiscal year.

   

Out of total liabilities of Rs 83,573 crore, Rs 45467 crore are internal debt, Rs 1237 crore is loans and advances from central government.

According to the official data, Rs 13487 crore liabilities were raised by J&K in 2018-19 and Rs 11999 crore in 2019-20.

The liabilities include Rs 34291 crore market borrowings, Rs 1237 crore loans from Centre, Rs 3370 crore special securities issued to the National Small Saving Fund, Rs 3574 borrowings from financial institutions/ banks, Rs 692 crore from Ways and Means Advance (WMA) from Reserve Bank of India, Rs 27162 crore from small savings, provident funds, etc., Rs 9709 crore reserve funds/deposits (Net).

“Taking forward all initiatives, we expect to achieve GDP conservative growth of 7.5% in 2021-22 which is our estimate given the pandemic situation,” said a senior official.

In comparison to 2011-12, Rs 36,256 crore J&K’s liabilities have witnessed an increase of over 100 percent in the last nine years.  In 2012-13 liabilities recorded were Rs 40,248 crore, 2013-14 Rs 44,646 crore, 2014-15, Rs 48,314 crore, Rs 2015-16, Rs 55,346 crore.

Meanwhile, Union Finance Minister, NirmalaSitharaman in her budget speech has stated that that budget 2021-22 “for J&K shall focus on good Governance aimed at maximum governance and minimum government, socio-economic development of the people, development or infrastructure across J&K and generation of employment which is our priority.”

“The budget for 2021-22 for J&K shall again cross Rs.1 lakh croremark, an indicator for our commitment to make J&K a model of development. The total budget estimates for the fiscal is Rs.1,08,621crore, of which developmental expenditure is of the order of Rs.39,817 crore. The capital component of the budget has increased substantially. The expected revenue receipts are Rs.97,141crore whereas revenue expenditure is expected to be Rs.68,804 crore thereby making available revenue surplus for capital expenditure to the tune of Rs.28,337 crore,” it states.

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