Govt to borrow Rs 300 cr from open market

Greater Kashmir

Srinagar, Jan 20: With Jammu and Kashmir in the midst of worst-ever financial crisis, the State Government has decided to borrow Rs 300 crore from open market to meet its daily expenses.
Official sources told Greater Kashmir that the State’s Finance Ministry Friday wrote to Union Finance Ministry on its approval to raise Rs 300 crore from open market.
“The state government has already borrowed Rs 1500 cr from open market during the current fiscal,” they said.
As already reported, Governer N N Vohra has empowered Principal Secretary Finance, BB Vyas to contract all open market borrowings as approved in the “Scheme of Financing” for 2014-15 Annual Plan.
Sources said the State’s economic health has worsened due to “unwarranted delay” in plan finalization and reduction in tax collection.
“The tax collection has been badly hit in Kashmir following the floods.  The collection is unlikely to show any improvement in next two to three months,” they said.
Crumbling under financial crunch, the government has already restricted the utilization of plan funds to 50 percent even as just 70 days of the ongoing financial year are now left.
 A senior state government official described the financial condition of the state as a matter of concern, saying “only Centre can bail-out the State.”