J&K budget today
*Rs 6000 Cr plan likely
Shuchismita
JAMMU, Mar 11: National Conference-Congress coalition government is all set to present its second annual budget for the year 2010-11 tomorrow in the state legislature with the tentative plan size of Rs 6000 Cr in all probability.
This would be 10-percent step-up from the annual plan size of Rs 5500 Cr for the year 2009-10 (current financial year).
Hint about the tentative plan size was evident in the Wrap-up meeting between the high-level team of J&K officers led by Chief Secretary S S Kapoor and Planning Commission officers today in the union capital. However despite very positive response from the Planning Commission appreciating the exigencies of the state, uncertainty prevails over the state's demands about PMRP extension and revival of power reform grants.
Since the ultimate approval to the exact annual plan for the next financial year would be accorded in the final meeting between the Chief Minister Omar Abdullah, Finance Minister A R Rather and the Deputy Chairman Planning Commission Montek Singh Ahluwalia, the 2010-11 annual plan size may be bigger than the tentative one. Reason being during the preliminary plan meetings including the wrap-up meeting, the state has sought 10-15 percent step-up in the annual plan size (which would be around Rs 6000-6500 Cr) for the next financial year in its projections.
J&K had got the plan outlay of Rs 5500 Cr for the year 2009-2010.
For Minister for Finance Abdul Rahim Rather, who will present the budget in Legislative Assembly, this would be 10th budget. Minister of State for Finance Manohar Lal Sharma would present the budget in the Legislative Council simultaneously.
They would present full budget tomorrow quoting tentative size of the annual plan, which would finally be approved later on by the Planning Commission (may be on higher side).
Reliable sources claimed that today's wrap-up meeting in New Delhi proved to be very fruitful. Tackling "financial mess", the state government is buoyed over the positive signals emanating from the Centre to bail it out from the crisis.
"J&K team is very optimistic about the central nod to the outlay of annual plan 2010-11 as per its projections which are between 10-15 percent step-up from the annual plan size for the year 2009-10. Projections were impressively presented before the Planning Commission and we're confident to get "affirmative gestures" from the Planning Commission, given the exigencies of the state," the sources stated.
"Our efforts in making the projections were well appreciated by the Planning Commission. Though the budget tomorrow would be presented on the tentative figures yet the state is certain to get Rs 6000 Cr as the annual plan for the next financial year," they added.
The final meeting is not likely to be held in March, the sources maintained.
It is notable here that the state has also demanded Rs 1200 Cr under Prime Minister's Reconstruction Programme (PMRP) by seeking its extension for two years. Programme was extended last year also. The extended period is due to end this financial year.
It has also sought the revival of power reform grants, which were given to it for three years (Rs 1300 per financial year) during Congress-PDP coalition government, which had started the tradition to present a separate power budget also. However Rather did not follow this practice in his last year's budget presented on August 5 and no separate power budget was presented.
Under the head of power reforms grants, the Centre has yet to release Rs 270 Cr. The state government, seeking the revival of grants under this head, has demanded Rs 1300 Cr in addition to Rs 270 Cr from the Centre.
Earlier Thursday morning, Chief Secretary S S Kapoor led the high level team of J&K officers which discussed the proposals for the next year's annual budget for the state with the Planning Commission in New Delhi during wrap-up meeting.
During the wrap-up meeting with the members, the Chief Secretary apprised the Commission about the process of planning and execution of projects worth Rs. 693 crore under the "projectised" category. The idea behind the projectisation is to take up projects with short-gestation period, which have a visible impact on the ground and are completed in a project mode during the same year itself.
The Chief Secretary apprised the Commission about the third party/independent physical verification and evaluation of certain development projects. The Planning Commission appreciated the steps taken by the state government for putting in place a comprehensive monitoring mechanism in consultation with NABCONS and M/S Mckinsy.
Kapoor stressed the need for expediting the release of balance plan funds as per the scheme of financing.
During the Working Group discussions, the Commission appreciated the positive steps taken by the state on developmental front. While endorsing the state proposals, the Planning Commission emphasized the need for greater resource support to the state.
During the discussions, stress was laid on the infrastructure development sectors like power, roads and irrigation, besides social sectors, including, education, health, drinking water and agriculture. Reformative measures for various sectors like urban development and power were also discussed in the meeting.
The Planning Commission acknowledged the efforts of the state government for realizing the public investment in the development of the state. Commission also suggested Public Private Partnership for tourism, power, roads, health and education etc.
Besides, the deliberations were made on the proposals regarding the flexibility in guidelines of CSS for making these more state specific. The Task Force Report prepared on the instructions of the Prime Minister, also came-up also for discussion and was appreciated. This report is being submitted to the Government of India for positive consideration.
The concept of public hearing (Awami Mulkaats) introduced by the Chief Minister Omar Abdullah was received well by the Commission. Working Group discussions and the wrap-up meeting will be followed by another meeting between the Chief Minister and the Deputy Chairman for deciding the Annual Plan size of the state.
Meanwhile Minister for Finance A R Rather remained closeted with high officials of his Ministry to give final touches to the much awaited budget.
For the whole day today, the Finance Minister had a hectic schedule with the Economic Advisor Jalil Ahmad Khan and Commissioner Secretary Finance Sudhanshu Pandey besides other aides.
The budget would be presented simultaneously in the Legislative Assembly and the Legislative Council tomorrow.
This is the second budget of the coalition government led by Chief Minister Omar Abdullah to be presented by Rather.
The coalition government is credited with the Annual Plan of the size of Rs. 6700 crore in 2009-10, which included Rs. 1200 Cr under Prime Minister's Reconstruction Plan (PMRP).
It is notable here that National Conference-Congress coalition instead of presenting full budget had presented Vote on Account on March 3 for the five months of financial year 2009-2010 i.e., for the period April 1 to August 31, 2009. Vote on Account of the order of Rs 9,503 Cr had comprised Rs 6513 Cr as non plan expenditure, Rs 2100 Cr as state plan expenditure, Rs 750 Cr under Prime Minister's Reconstruction Programme and Rs 500 Cr as expenditure under centrally sponsored schemes.
Later full budget was presented in August wherein major emphasis was given on agriculture, allied sectors, social, general services and employment. Yet this year the government claims its main focus in the budget would be employment. They government may also introduce new taxes for Additional Resources Mobilisation.