J&K witnessed turnaround in economy, fiscal health: Manoj Sinha

SRINAGAR — Stating that Jammu & Kashmir has witnessed significant progress and development, Lieutenant Governor Manoj Sinha on Monday said that the administration has increased the Union Territory’s revenues, reduced wasteful expenditure and improved fiscal transparency.

Addressing a news conference on J&K’s 2024-25 budget, the LG, as per the news agency KNO, said the reforms and initiatives coupled with judicious welfare measures and infrastructure development have helped the GDP of J&K to double from Rs 1.17 lakh crore in 2015-16 to Rs 2.45 lakh crore in 2023-24. “The GDP is expected to touch Rs 2.63 lakh crore in 2024-25,” he said.

He said it is heartening to see that doubling of J&K’s economy during 2013-2024 was achieved by overcoming enormous challenges due to massive floods in Kashmir, incessant efforts of sponsored terrorism and the economic shock of the COVID-19 pandemic.

He said the Union government has acknowledged these improvements in financial management of the UT government. “Accordingly, in the current financial year 2024-25, the Union Government has approved a special assistance package of Rs 17,000 crore for Jammu and Kashmir,” he said, adding that the Central government has decided to take the financial burden of J&K Police, for which an allocation of Rs 12,000 crore has been made.

Spelling out priorities of his administration, Sinha said the UT government has focused on project execution, increasing revenue and reducing A&TC losses. “As we all know, in the past, Jammu and Kashmir faced challenges in fiscal management due to the unabated pressures of externally sponsored terrorism,” he said, adding that the high levels of committed expenditure and ATC losses in the power sector had accentuated these challenges.

Sinha said his administration has made strenuous efforts to enhance revenue generation in the UT. “Tax revenues have increased from Rs 12,753 crore in 2022-23 to Rs 13,900 crore in 2023-24, registering a growth of 9%. GST collection increased by 12% and excise collection increased by 39% in FY 2023-24 as compared to FY 2022-23,” he said, adding that the UT government improved GST return compliance, initiated e-Stamping system, expanded dealer registration and conducted transparent excise auctions.

Speaking on the 2024-25 budget, the LG said that the budgetary allocation of the UT for the current fiscal is Rs 30,889 crore more than the expenditure of the last fiscal.

“The size of the budget 2024-25 is Rs 1,18,390 crore. It is Rs 30,889 crore higher than the expenditure of 2023-24,” he said.

The LG said that they got huge power purchase liabilities worth Rs 28,000 crore in legacy. “We have been able to repay it. I also want to put it on record that J&K people are getting the cheapest power and there has been no hike in the past three years,” the LG said, adding that people have to pay for the government services they avail.

The LG said the complete turnaround of J&K Bank also reflects the accelerated growth and strengthened foundations of J&K’s economy. “During the last four years, from a loss of Rs 1,139 crore in 2019-20, the bank has reported a profit of Rs 1,700 crore in 2023-24. The NPA has been reduced from 11 percent to the current level of 5 percent. The Bank is focusing its efforts to improve professionalism, efficiency and transparency in its business operations,” he added.