JK facing grave financial crisis: Vohra writes to Jaitley

Greater Kashmir

To meet FinMin for ‘urgent help to tide over financial breakdown’

Srinagar, Jan 21: J&K Governor NN 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, officials said. The Governor is also likely to call on Jaitley in New Delhi to discuss the “financial breakdown” in the state.
A Raj Bhavan spokesman Wednesday said consequent to holding several rounds of personal discussions with the State Planning and Finance Secretaries, and consultations with the Chief Secretary, the Governor has addressed a detailed communication to the Union Finance Minister regarding the crisis being faced on the financial front.
“The Governor’s letter to the Finance Minister brings up the severe difficulties faced in funding the Annual Plan (2014-15) and the virtual breakdown of the State’s financial balance,” the spokesman said.
He disclosed that, separately, action is also being taken for the Governor to visit Delhi for meeting the Finance Minister and seeking “his urgent help to enable the State Government to tide over the obtaining crisis.”
J&K is, according to officials, presently facing the worst-ever financial crunch due to non-release of funds by the central government while delay in government formation “is only aggravating the problem.”
The liabilities, the officials said, have mounted to Rs 2000 crore including the pending Rs 500 crore on account of General Provident Fund (GPF) and contractor bills of Rs 600 crore.
The 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 the current 2014-15. However, the Plan and other funds are yet to be released by the Centre.
The State Government has decided to borrow Rs 300 crore from open market to meet its daily expenses.
Official sources said 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.