Srinagar: Jammu and Kashmir’s Gross Domestic Product (GDP) is anticipated to surpass Rs 2.30 lakh crore with a growth rate of 10 percent in the fiscal year 2023–2024.
“GDP growth for the year 2023-24 has been projected at Rs 2,30,727 crore which shows a growth of 10 percent over the previous year,” read a copy of J&K’s Budget 2023-24 tabled by the Union Finance Minister in the Parliament last week.
In the financial year 2022-23, J&K’s GDP was pegged at 2,09,752 crore.
GDP is the total monetary or market value of all the finished goods and services produced within the borders of a state or country in a specific time period.
As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given state’s economic health.
The tax and GDP ratio of J&K is projected at 8.82 percent for 2023-24, which is higher than the previous year of 7.77 percent, meaning that tax revenue collection is strengthening vis-à-vis the GDP.
Tax-to-GDP ratio refers to the ratio of a state’s tax revenue in relation to its GDP.
The debt-GDP ratio for 2023-24 is reported to be 49 percent, which has J&K at second-highest debt-GDP ratio in the country.
To put things in perspective, states with the highest debt-to-GSDP ratio in 2021-22 in the country include Punjab (53.3 percent), Rajasthan (39.8 percent), West Bengal (38.8 percent), Kerala (38.3 percent) and Andhra Pradesh (32.4 percent).
“Despite odds, Jammu and Kashmir sustained the pace of development and expeditiously managed the expenditure both under the revenue and development side. The overall GSDP growth during the financial year 2021-22 has been 14.64 percent (1st Revised) as compared to the financial year 2020-21. The sectoral breakup shows resilience in the economy,” reads the official budget document. “The economy is on the right track and the government is focusing on equitable growth in all the sectors of the economy. The economy is expected to grow at 10 percent and there has been a significant growth in collections under GST, Excise and Stamp Duty.”
“The GST collection is Rs 6666.04 crore upto February 2023, which has shown a growth of 14.64 percent over the same period of the previous financial year 2021-22. The MST collection is Rs 1444.45 crore upto ending February 2023. The stamp collection is Rs 438.88 crore upto February 2023 against Rs 401.44 crore during the last financial year 2021-22, showing a growth of 9.33 percent,” the official budget document read.
It said that the excise collection had been Rs 1658.35 crore upto ending February 2023 during the current financial year 2022-23 against 1443.07 crore in the same period during the last financial year 2021-22, registering a growth of 14.92 percent.
“The overall tax collection has shown significant growth and resilience,” the budget document read.