JAMMU, July 31: The Lok Sabha today approved Jammu and Kashmir’s budget for the current financial year of 2024-25 to the tune of Rs 1,18,390 crore with Union Finance Minister Nirmala Sitharaman stating that the Central Government wants to take Rs 12,000 crore burden of Jammu and Kashmir Police expenses on its shoulders so that the Union Territory has more flexibility to spend money on development activities.
“We have provided substantial financial support of Rs 17,000 crore to Jammu and Kashmir in the UT’s annual budget for current financial year of 2024-25. It included Rs 12,000 crore towards financing the cost of Jammu and Kashmir,’’ Sitharaman said in her reply to the debate on general budget and the budget of the Union Territory of J&K in Lok Sabha today.
She asserted that the Central Government wants to take burden of Jammu and Kashmir on its shoulders so that the UT has more flexibility to spend money on development activities.
The Central Government had provided substantial financial support of Rs 17,000 crore to the Union Territory of Jammu & Kashmir this year. It includes Rs 12,000 crore towards financing the cost of J&K police.
Following the Finance Minister’s speech, the Jammu and Kashmir budget and relevant appropriation bills were passed by a voice vote.
A number of members in Lok Sabha took part in the debate on Jammu and Kashmir budget which was held simultaneously with general budget of the country.
Discussion on Jammu and Kashmir budget along with general budget is on in the Rajya Sabha. After Nirmala Sitharaman’s reply and the Rajya Sabha nod, the UT’s budget will be approved.
This is fifth consecutive budget of Jammu and Kashmir which was presented and approved by the Parliament in the absence of Legislative Assembly here. Last elected Government in Jammu and Kashmir headed by Mehbooba Mufti as the head of PDP-BJP alliance collapsed in June 2018 following withdrawal of support by the BJP. Since then, there has been no elected Government in J&K. The erstwhile State was stripped of special status and bifurcated into two Union Territories of J&K and Ladakh by the Central Government on August 5, 2019.
Out of a total of Rs 1,18,390 crore worth budget, the revenue expenditure includes Rs 81,486 crore and capital expenditure will be to the tune of Rs 36,904 crore. The revenue receipts will be Rs 98.719 crore and capital receipts will be Rs 19,671 crore. There is Rs 7902 crore worth fiscal deficit while capital expenditure’s contribution towards GSDP will be 14.01 percent. Expected GSDP is Rs 2,63,399 crore and expected growth in GSDP is pegged at 7.5 percent.
The economy remains on right track with GDP growth for financial year (2023-24) expected to be 7.5 percent. Revenue collections under GST recorded 12 percent growth while excise collection went up by 39 percent. Motor Spirit taxes and stamp and registration revenue also went up significantly.
Meanwhile, Finance Minister Nirmala Sitharaman termed as misleading claims by opposition leaders that if any State is not named in the Budget speech, then it does not get any budgetary allocation.
Replying to a Budget discussion in the Lok Sabha, Sitharaman asserted that no State was being denied money.
She recalled that in the past Budgets by the UPA Government also did not mention names of all States in their Budget speech.
“I have been picking up on Budget speeches since 2004-2005, 2005-2006, 2006-2007, 2007-2008 and so on. The Budget of 2004-2005 did not take the name of 17 States. I would like to ask the members of the UPA Government at that time – did money not go to those 17 States? Did they stop it?” Sitharaman asked.
She was responding to comments by several opposition members that the Budget has provided funds only to Bihar and Andhra Pradesh and nothing to other States.
Sitharaman said India is the fastest-growing economy globally and has overcome the after-effects of the pandemic due to heavy capex push.
She also said the Government is complying with the fiscal deficit trajectory. It will bring down the deficit to below 4.5 per cent by 2025-26 from the targeted 4.9 per cent for the current fiscal. The deficit was 5.6 per cent in 2023-24.
