Govt to spend Rs 31,000 cr on state development: Drabu

Tribune News Service

Jammu, January 18

Minister for Finance Haseeb Drabu today said the PDP-BJP government was expected to spend the highest-ever allocation of Rs 31,000 crore on developmental activities which comes around 39 per cent of the total expenditure of Rs 79,472 crore earmarked for the next fiscal.

He, however, said peace, stability and a working environment were the prerequisites to facilitate and enhance effective spending of this huge allocation and creation of tangible assets on the ground.

“We have initiated some fiscal management measures to strengthen and streamline the economic and social infrastructure,” Drabu said while winding up the discussion on the demand of grants for the departments under his charge in the Legislative Assembly today.

The Finance Minister said if implemented, this could be the highest-ever allocation for developmental activities in a fiscal year.

He said the increase in budgeted Capital Expenditure had massively shifted the total percentage of expenditure towards development front. “In 2011-12, the rate of investment on development front was 6.80% of the State Domestic Product which has reached 10.02% in 2016-17, the highest ever,” he claimed.

Drabu added, “Presently, the government is providing 40 per cent share of our revenue in expenditure, which is highest in the country, and this expenditure is giving fillip to the economic growth.”

The main focus in the next financial year will be timely rollout of projects under Rs 80,000-crore PM’s Development Package for development and reconstruction of physical and economic infrastructure in the state, he said.

GST implementation in J&K

On the issue of government’s stand on implementation of GST in the state, Drabu said clarity had not been made so far and the modalities were being worked out in the GST council meetings. “I have requested the Ministry of Law and Parliamentary Affairs to have a discussion on the Act to get the guidance and sense of the House in its current session. We are seeking clarity on various components of the GST. The GST system is beneficial for consumption states like J&K. I assure that we will protect the special status of the state before its (GST) implementation in the state,” Drabu said.

SARFAESI Act

Responding to the issue of SARFAESI Act, he said it was essential for the banks for having a market where they could sell the properties for which the government had proposed creation of the J&K Asset Reconstruction Company.

“There is a need of having a proper market mechanism under which all the state subject properties can go to the JKARC with the provision that the Transfer of Properties Act being upheld by the Supreme Court will prevail and SARFAESI Act will not at any stage disturb Article 370,” he said.

Liabilities and fiscal management

Drabu said the government had also taken a bold decision of clearing all past liabilities so that we could move ahead with the status of a clean state. “We are intended to clear all the liabilities by March 31 this year. To ensure check on over-cost liabilities in future, the DPR-based system is being proposed in which only such projects will be sanctioned which will be backed by proper project reports,” he said.