Centre unveils Rs 59,364 crore interim budget for J-K

SRINAGAR — The Union Government on Monday unveiled Rs 59,364 crore interim budget for Jammu & Kashmir Union Territory, while the budgetary estimates for the next financial year 2024-25 are expected at Rs 1,18,728 crore.

Interim Budget

The budget documents of J&K Union Territory laid in the Lok Sabha lay bare that the Union Finance Ministry has proposed a vote-on-account for Rs 59,364 crore for Jammu and Kashmir.

Documents reveal that the capital expenditure involves Rs 19,283 crore and revenue expenditure Rs 40,081 crore.

The proposed interim budget includes Rs 48,930 crore as revenue receipts and Rs. 10,434 crore as capital receipts.

The documents show that total gross receipts in respect of the proposed vote on account for 2024-25 are estimated at Rs 75,932 crore, including the provision for ways and means advances of Rs 16,568 crore.

The Union Finance Ministry has sought parliamentary approval only for Rs 75,932 crore, including the provision for ways and means advances of Rs 16,568 crore.

The interim budget was presented as a Model Code of Conduct would likely come into effect in the first week of March for Lok Sabha elections which would be held in April-May. The UT’s full budget will be presented once the next government is in place after the 2024 parliamentary elections.

Budget Estimates for 2024-25

The total budget estimates for fiscal 2024-25 are Rs 1,18,728 crore, excluding the provision for ways and means advances, of which the revenue expenditure is estimated at Rs 80,162 crore and capital expenditure to be Rs 38566 crore.

The expected revenue receipts are Rs 97,861 crore and capital receipts are Rs 20,867 crore.

Fiscal Indicators

According to budget documents, the tax/GDP ratio is projected at 7.84 per cent for 2024-25 which is higher than the previous year of 6.56%.

These documents state that GDP for the year 2024-25 has been projected at Rs 2,63,399 crore, which shows a growth of 7.5% over the previous year.

This was the fifth consecutive budget of J&K UT to be presented in Parliament. After abrogation of Article 370 and reorganization of J&K into a UT, all budgets of J&K have been presented. This is being done as J&K has been without its own Assembly since 2018.

“Investment proposals worth Rs 90182 crore received in J&K”

The Government of India on Monday said that the J&K Government has received investment proposals worth Rs 90182 crore and investment worth Rs 5319 crore has been grounded in the Union Territory since 2019-20.

These details were revealed by the GoI in the budget documents of J&K laid in the Parliament today.

According to the documents, investment proposals worth Rs 90182 crore were received which have the potential to generate employment for 4,01,965 youth.

“Since 2019-20, an investment worth Rs 5319 crore has been grounded,” the documents lay bare.

The Union Territory Government has launched the Jammu & Kashmir Industrial Policy 2021-30 with the aim to attract new investment, create employment opportunities for youth, developing backward regions and expanding existing industrial units.

In a move to woo investors, it has also notified the Industrial Land Allotment Policy 2021-30, Private Industrial Estate Development Policy 2021-30, Wool Processing, Handicrafts and Handloom Policy 2020.

The GoI also revealed that apart from the existing 64 industrial estates, 46 estates are being developed to fulfil the goal of ‘Made in Jammu and Kashmir’.

“46 new Industrial Estates have been identified for development that will attract investment and create employment opportunities,” the budget documents state.

According to the documents, Jammu and Kashmir emerged as the top-ranking Union Territory of India in the 2022 Export Ranking. “The Union Territory improved its ranking from 35 in 2020 to 17 in 2022,” the budget documents revealed.

The Centre also revealed that Handloom and Handicraft exports have doubled from Rs 563 crore in 2021-22 to Rs 1116 crore in 2022-23.