GSDP in JK expected to grow at 7.5 pc during 2024-25 fiscal: Lt Guv
- Says J&K Bank reported a complete turnaround during past 4 years
- 20 national sports events to be organized in 2024-25
- Additional 10 kg of rice per month to Priority Households will be provided
- Private Industrial Estate Development Policy to be revamped
Srinagar: Jammu and Kashmir’s GSDP is expected to grow at 7.5 per cent during the current fiscal, Lt Governor Manoj Sinha said on Monday.
“The GSDP (Gross State Domestic Product) for 2024-25 has been projected at Rs 2,63,399 crore (Rs 2.63 lakh crore), showing a growth of 7.5 per cent over the GSDP of 2023-24,” Sinha told reporters.
Highlighting the budget’s salient features, he said the size of provisions this fiscal was Rs 30,889 crore higher than the previous year.
“The size of the budget for 2024-25 is Rs 1,18,390 crore (Rs 1.18 lakh crore). It is Rs 30,889 crore higher than the expenditure of 2023-24,” he added.
Giving details, the lieutenant governor said the revenue receipt estimate for 2024-25 was Rs 98,719 crore and capital receipt estimate Rs 19,671 crore.
Revenue expenditure for 2024-25 is pegged at Rs 81,486 crore.
The administrative sector has got Rs 9,881.68 crore, social sector Rs 24,870.50 crore, infrastructure sector Rs 15,719.40 crore and the economic sector Rs 5,555.48 crore, Sinha said.
“Capital expenditure (or developmental expenditure) for 2024-25 is Rs 36,904 crore,” the lieutenant governor added.
While the capital expenditure contribution towards GDP is 14.01 per cent, the tax-GDP ratio is projected at 7.92 per cent, which is higher than last year’s 5.68 per cent, he told reporters.
Sinha said Jammu and Kashmir had left behind the era of fiscal mismanagement due to externally-sponsored terrorism and added that the high levels of committed expenditure and ATC (aggregate technical and commercial) losses in the power sector had accentuated the challenge of managing the Union Territory’s finances.
“Over the past year, the Union Territory government stressed on revenue augmentation, improving project execution, reducing ATC losses, and improving quality of governance,” he added.
The Union Territory government improved GST return compliance, initiated an e-Stamping system, expanded dealer registration and conducted transparent excise auctions as part of efforts to augment revenue, he further said.
“Tax revenue increased from Rs 12,753 crore in 2022-23 to Rs 13,900 crore in 2023-24. GST collection rose 12 per cent and excise collection increased 39 per cent in the 2023-24 fiscal against 2022-23,” the lieutenant governor added.
The Union Territory government’s efforts to undertake metering and improve billing and collection efficiency resulted in non-tax revenue increasing from Rs 5,148 crore in 2022-23 to Rs 6,500 crore in 2023-24, Sinha said.
The administration has effectively leveraged centrally-sponsored schemes and intensified efforts to harness central funds through faster execution of works, he said.
“This led to a sharp increase in receipts of funds under centrally-sponsored schemes from Rs 6,400 crore in 2022-23 to Rs 10,300 crore in 2023-24,” according to the lieutenant governor.
During the past few years, the Union Territory government improved budgetary transparency. It also repaid power sector dues of about Rs 28,000 crore, which was pending and rising for several years, he said.
For the first time in 77 years, the Union Territory contributed to the contingency funds created by the Reserve Bank of India such as the Consolidated Sinking Fund and the Guarantee Redemption Fund, he added.
Sinha said the administration had stopped borrowings and significantly paid off previous dues.
“These initiatives, coupled with the judicious welfare measures and infrastructure development, helped the state GDP double from Rs 1.17 lakh crore in 2015-16 to Rs 2.45 lakh crore in 2023-24. The state GDP is expected to touch Rs 2.63 lakh crore in 2024-25,” he said.
The Centre has acknowledged these financial management improvements as well, he claimed.
“Accordingly, in the financial year 2024-25, the Union government has approved a special assistance package of Rs 17,000 crore for Jammu and Kashmir,” Sinha said.
On expenditure reforms, the Lt Guv said that the UT government has effectively leveraged Centrally Sponsored schemes. The UT government intensified efforts to harness central funds through faster execution of works.
“This has led to a sharp increase in receipts of funds under CSS from Rs 6400 crore in 2022-23 to Rs 10300 crore in 2023-24. The UT government has steadfastly undertaken technology reforms to enhance transparency and accountability in budgeting and expenditure management. A systematic drive was started to physically monitor and verify all developmental works through independent officers,” he said.
He said that the UT government undertook Aadhar seeding and Biometric verifications systematically for cleaning databases of welfare schemes. The UT government also ensured cost savings through competitive procurements through the GEM and e-Tendering.
“For the first time in 77 years, UT contributed to the contingency funds created by RBI; viz. the Consolidated Sinking Fund and Guarantee Redemption Fund,” he said.
He added that the UT government brought the off-Budget borrowings on its books from 2023-24 and started their timely repayment. As a result, stock of such borrowings has started tapering down.
“What is especially heartening is that the doubling of J&K’s economy during 2013-2024 was achieved by overcoming the enormous challenges of the massive floods in Kashmir, the incessant efforts of sponsored terrorism and the economic shock of Covid-19 pandemic,” he added
The Lt Guv said that a complete turnaround of J&K Bank also reflects the accelerated growth and strengthened foundations of J&K’s economy.
“During last four years from a loss of Rs. 1139 Cr in the year 2019-20, the bank has reported a profit of Rs. 1700 Cr in the year 2023-24, the NPA has been reduced from 11% to current level of 5%. The Bank is focussing its efforts to improve professionalism, efficiency and transparency in its business operations,” he said.
Commenting on the major initiatives the government has undertaken, the Lt Guv said that the Government of India is supporting to enhance Power Generation from 3500 MW to about 6500 MW till 2026-27. So far, Government of India has provided equity share of Rs. 2430.60 crore to the UT for development of 04 new Hydro Electric Projects.
“The Central Government has rolled out the New Central Sector Scheme (NCSS) since 2021 with an outlay of Rs. 28,400 crore for industrial development in Jammu and Kashmir. Total 889 units with proposed investment of Rs 18,185 crore and employment of 46,857 have already started work on the ground. Till date investment worth Rs.6600 crore has been realised on ground,” he added.
He said that competitiveness Improvement of Agriculture and Allied Sectors project will be implemented in Jammu and Kashmir with a loan of $100 million from International Fund for Agricultural Development (IFAD). This initiative shall generate employment opportunities for 2.8 lakh farmers.
The Lt Guv said that Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 400 lakh mandays are to be generated.
He said that under the HIMAYAT training of around 7000 candidates is to be completed.
“12,000 additional Self Help Groups (SHGs) to be formed during 2024-25,” he added.
Sinha said that border Tourism in areas of Kashmir valley like Gurez, Keran, Lolab and Teethwal etc. has received domestic tourist arrival of 1.5 lakhs during 2023.
“New initiative for development of infrastructure and basic amenities in 12 off-beat tourist destinations, 6 each in Jammu and Kashmir divisions, with objective of enhancing tourism appeal and expanding local business and job opportunities,” he said.
Sinha said that planting of 190 lakh native trees and 100 lakh low cost greening interventions have been started with an aim to restore ecosystems, prevent soil erosion and enhance biodiversity across the UT.
He said that all 78 urban Local bodies of Jammu and Kashmir to have at least one Nagar Van, Nagar Vatika or an Eco Park.
The Lt Guv said that two Cancer Institute’s at Jammu and Srinagar to be made fully operational during 2024-25.
He said that the government is enhancing DNB seats to 400 thereby improving the availability of Specialists.
He added that 2,176 new Kindergartens to be established to attain saturation in all the 13,804 schools in phased manner.
“Only fortified rice is to be served to about 8.95 lakh students at elementary level (I to VIII) under Mid-Day Meal Scheme for improving nutritional health of students. Infrastructure of 389 schools to be upgraded under Pradhan Mantri Schools for Rising India (PM SHRI) Scheme,” he said.
The Lt Guv said that all persons with disability are to be covered under Niramaya Health Insurance Scheme.
Sinha said that 75 lakh youth engagement in various sports events is to be held at the Panchayat, Block, District, UT and National level during 2024-25.
He added that 20 national sports events to be organized in 2024-25.
Sinha said that additional 10 kg of rice per month to Priority Households will be provided under Prime Ministers Food Supplementation Scheme.
He added that e-KYC of all beneficiaries under Public Distribution System to be completed.
The Lt Guv said that under Jammu and Kashmir Rural Employment Generation Programme (J&K REGP), 1,372 units are targeted to be setup during 2024-25.
“New Start-up Policy to be introduced for creating entrepreneurship ecosystem besides thrust on up-gradation of infrastructure in existing Industrial Estates is being worked out,” he added.
He said that the Private Industrial Estate Development Policy to be revamped.
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