The budget 2018 has created excitement in various circles of the state. Most of the economic pundits and cross section of the people seemingly consider present budget a new direction to the development and economy of the state, employees’ association looks it in context of the booty in the shape of 7th pay commission, and same is true for the agriculturists and horticulturists who are euphorically rejoicing the budget.
Till last year, budgets reflected a distressing revenue deficit as a result liabilities piled up which seems to have been considerably reduced in present budget. It is often seen that recurrent revenue deficits have /had serious deleterious impact on the State budgetary position. Thanks to the present budget stubborn combined liabilities have come down radically to about 5.7 % from 9.4%. Present budget also showcases reduction in departmental liabilities from Rs. 11000 crore to Rs. 600 crore across the departments remarking that RS. 7000 crore were on account of power. It also indicates Rs.1319 crore as power bond as resources in sight to cover up the liabilities than the previous. However, Economic Survey Report provides totally a different picture where in yearly fiscal deficit has been shown a consistent increase from 2883 crore in 2011-12 to 8982 crore in 2016-17, fiscal liabilities 62207 crore 2016-17 crore from 55354 crore in 2015-16. However, It is likely to shake imagination of any economist that a state which was reeling through heavy fiscal deficit and liabilities, observed disturbed tourist season, faced the brunt of adoption notebandi and GST which has turned economy topsy turvy in whole of the country, how has it been possible for the state to correct the economic indicators of development. The decline in revenue deficit and increase in bonds have to be supported by invigorated macro and micro economic factors which by present economic conditions apparently looks more unlikely. In the absence of real economic momentum such things are possibly either by cutting down amenity and welfare to the people or there might have been slackening of expenditure which has accrued surpluses consequently improved financial health, needs to be explored. In case increase has been achieved due to reduced level of service to the people, it is bound to create an expenditure explosive cycle of investment to maintain and provide desired level of services.
Since budget is regarded as an effective instrument of economic development and policy. It has to play a significant role as budgetary policy focusing on promoting and accelerating growth of production investment in the state in its all sectors, mobilization of resources, promote welfare, economic stability with focus on scale of saving in the state. It is not merely a statement of actual current as well ass the estimates of financial receipts and disbursement of a government for the year. Generally, State budget has to be a reflection of the budget at central level to ensure and facilitate easy dovetailing and convergence. If budget 2016-17 is examined at a glance, central government realizing the importance of urban development sector has allocated about 39 percent for it to cover aspects like heritage development, augmentation Yojanas, urban basic services, water supply, sewerage, urban transport, and building amenities in the cities and towns for improving quality of life. It has also earmarked substantial funds for metro city development like Delhi, Mumbai, Nagpur, Lucknow, Kochi, Chennai, Bangluru and Ahmadabad.
In the present budget urban development sector has got a big miss despite state making strenuous efforts to upgrade infrastructure and level of services through various plan schemes. Experiences of the past vividly manifest that plan schemes have not been able to change the crisis ridden urban scene of the state. Every citizen is well aware of the present status of the cities and towns of the state. These inhabit more than 40 lakh people who are confronted with all sort of urban problems ranging from inadequacy of amenities, amenities, efficient public transport, planned development, problem of urban poor, informal sector and host of environmental issues. Budget 2018 in its policy strategy except two crores for plantation of parks,Rs. 4 crores to procure 20 small mechanized drain cleaning machines and Rs. 1000 crore for panchayats as well as ULB (collectively) covers no other significant urban development aspect which would have long term impact on shaping the jeopardized urban areas. It signifies that the cities and towns of the state will continue to reel under glaring urban problems. It indicates a total neglect toward the cities which are considered face of the state and the nation. Not only this policy makers need to bear in mind that development does not land into village directly but traverses to rural areas through cities and towns. Therefore, discordant neglect of growing urban problems is blatant mistake in the present budget. The strategy as envisaged seems to be an isolated decision ignoring urban development. Since central government budget 2016-17 in very explicit manner focuses vehemently on urban development there was an opportunity for the state government to bring in a strong element of urban development to shape and improve the conditions of the cities and towns. The miss is going to be costly for each urban citizen and is a very serious lapse. Since the current budget is considered a deviation from the past toward better state development and economic scenario, it was in many ways a bag full of opportunities to address long neglected urban sector but has unceremoniously again met the same fait. Realizing the opportunities would have enabled the state to infuse growth momentum build a faster, fairer planned urban development. But budget has passed up the chances and once again chosen to follow the treaded track aiming at short term political gains only from urban sector. Sooner or later this neglect is going to test the credibility of the government with respect to galvanizing mass support from urban J&K.
As student of urban planning I am not against the rural development but it is now a known fact that cities and towns act as gateway to the diffusion of benefits of development. Therefore, unless and until our cities and towns are well developed and planned benefits of development neither will be received nor tasted by them. The much hyped all-round sustainable development can not be effectuated also for the future good of the state unless we aim at comprehensively balanced development. My personal observation with respect to what the budget contains and what will trickle down in reality is nothing beyond an unfortunate episode that this year budget seems no different than the previous budgets for the urbanites of the state.
Sundus Samreen Wani is Associate Project Consultant, Department of Urban Planning, SPA Delhi.