During past one week liabilities in the state treasuries have increased from Rs 2200 crore to Rs 2700 crore.
With Jammu and Kashmir facing severe financial crisis the liabilities at treasuries have swelled to Rs 2700 crore. The non-release of plan and other funds by the BJP-led government at centre, according to experts, has further aggravated the situation.
During past one week liabilities in the state treasuries have increased from Rs 2200 crore to Rs 2700 crore with officials cautioning that "if the funds are not released by the centre government soon there is every possibility of developmental works in the state getting hampered."
A senior finance department official confirmed that liabilities in JK have crossed Rs 2700 crore with pending bills of contractors, employees, general provident fund, gratuity, commutation and other bills awaiting payment are lying unattended in the state treasuries across Jammu and Kashmir.
"As of now, the liability on account of contractors’ bills has touched Rs 900 crore, GPF Rs 800 crore, and other bills Rs 1,000 crore," he said, adding that with each passing day the financial health of the Jammu and Kashmir was worsening.
"We are somehow arranging the salaries of employees, and meeting day-to-day expenses from internal resources of the state,” he said.
He said the deferment in the realization of taxes, VAT and other levies from the business community in the wake of floods has affected state’s own revenue generation besides hitting the developmental works.
“Till date only 50 per cent of the Plan sanctioned to J&K has been released by the central government. No plan funds have been released from September."
Pertinently, government of India had approved Rs 7300 crore annual plan, Rs 4000 crore under Centrally Sponsored Schemes and Rs 600 crore under the Prime Minister’s Reconstruction Plan (PMRP) for Jammu and Kashmir during 2014-15.
A senior official of Planning Department wishing anonymity said: "Although the state government was in the process of borrowing Rs 300 crore from open market under ways and means guidelines of RBI, the amount is too little."
J&K Governor N N Vohra has formally written to the Union Finance Minister Arun Jaitley on J&K’s “grave financial crisis”, seeking his intervention to tide over it. The Governor is also likely to call on Jaitley in New Delhi to discuss the “financial breakdown” in the state.