ZT Economic Analysis Team
Srinagar, Dec 17: The Rs 88,911 crore state budget for fiscal 2019-20 presents itself as a mixed bag of something and nothing.
The budget was approved by the State Administrative Council (SAC), headed by Governor Satya Pal Malik on Saturday evening at the specially convened SAC meeting.
Principal Secretary Finance, Navin K Choudhary gave a detailed presentation to the SAC on the Revised Estimates for 2018-19, Budget Estimates for 2019-20 and other key features of the budget.
The SAC was informed that the focus of the Budget 2019-20is to give a big push to tangible developmental initiatives with Rs 30469 crore earmarked for building public and social infrastructure in addition to Rs 3631 crore already provided under Languishing Projects Programme.
SAC observed that investment in infrastructure is the growth driver for economy and has a cascading impact on all sectors including employment generation and socio-economic development.
According to Chief Secretary, BVR Subrahmanyam, the Budget 2019-20 has structured around three fundamental objectives of Building Infrastructure, Building Institutions and Building Systems under the Government’s overarching Mission for Delivering Development and Mission on Good Governance.
He said the Budget is aimed at driving the states economic growth through multifarious initiatives with thrust on substantive developmental and welfare measures.He said the investment in key developmental and social sectors has been enhanced substantively to leave a visible impact on the ground.
Chief Secretary said to build adequate capacities in the Line Departments for spending huge developmental funds, it has been decided that the line departments would be adequately strengthened by way of providing consultants, setting up of dedicated DPR preparation cells and Project Implementation Agencies and IT Consultants etc.
Giving sector-wise details of the budget proposals, Chief Secretary said that the biggest development during last six months of Governor’s Rule has been successful conduct of Panchayat and Municipal polls. The Panchayati Raj Act and the Municipal Act have been amended to empower these Local Bodies in a real sense.
The Panchayats and Municipal Bodies for the first time are likely to receive considerable funds. Rs 2573 crores are expected to flow to Panchayati Raj Institutions and Rs 1030 crores to Urban Local Bodies during next 15 months. Every Panchayat will get funds ranging from Rs20 lakh to Rs1 crore depending on its area and population to transform the developmental activities at the grassroots level.
2000 posts of Accounts Assistants are proposed to be created for Panchayati Raj Institutions to help them manage expenditure and account keeping.
MGNREGA has been an important rural development programme. However, it has a strict 60:40 ratio for wage component and capital component. In order to meet this ratio, many a times quality of infrastructure created through this programme is not up to standards and accordingly MGNREGA fundsshall be supplemented by way of up to 10% allocation from the State Exchequer to ensure quality of assets created.
The funding for the Rural Development Department has been proposed to be doubled to undertakes various activities of urgent public needs.
Rs 7 crore State share proposed to be provided to the Rural Development Department for solid waste management in rural areas, Rs 1 crore additionality for construction of quality pathways in the hilly villages and additional Rs 1.28 crore for completion/ construction of playfields in Poonch and Reasi.
Agriculture, Animal/Sheep Husbandry/Horticulture
He said allocation to Agriculture sector has been proposed to be enhanced by Rs20 crores to be used for Revolving fund for Basmati Rice, improvement of Chinore Seed Farm, procurement of Dual Maize Thrashers, purchase of vegetable seeds, Mushroom cultivation, Paddy thrasher, Critical repairs of Irrigation channels, Vermi composite facilities, Bore well lift irrigation facilities, Cold storage etc.
To ensure availability of feed as per requirement an additional amount of Rs4 crore has been proposed for Animal/Sheep Husbandry Department and RS 1 crore for shifting of the Animal/Sheep Husbandry farm to Chatta from Jammu.
50% subsidy proposed to be provided for all new CA stores to be established during next fiscal. Similarly, 50% subsidy will be made available for refrigerated vans for transportation of perishable vegetables/fruits.
Rs 2 crore have been provided for promotion of urban horticulture by way of planting 2-5 trees in the residential premises of households having some open land available.
To promote commercial cultivation of flowers in private sector, a provision of Rs9.18 crores has been made to meet the freight subsidy, refrigerated vans etc. The Floriculture Department will work out a scheme in this regard.
To build infrastructure in existing and 40 new Degree Colleges proposed to be opened in the State, an allocation of Rs50 crores in the balance period of the current financial year and Rs200 crores for the next financial year has been proposed for infrastructure augmentation. Required manpower with more emphasis on teaching faculty will also be provided for these Degree Colleges.
Taking note of the fact that more than 8 lakh children in the primary and middle schools are without benches and desks and study sitting on the ground, the Government has proposed to provide Rs100 crores in budget to address this issue.
To ensure regular water and electricity supply to all the schools, an allocation of Rs 45crores has been made for next fiscal.
Rs 5.50 crore have been proposed for reactivating EDU-SAT and setting up additional Smart Classrooms in schools.
All under-construction buildings of Medical Colleges, District/Sub-district hospitals, PHCs etc are proposed to be completed during 2019-2020 for which an allocation of Rs 350 crores has been proposed.
Besides, Rs 100 crores has been proposed to be provided for onetime augmentation of the equipment in the hospitals across the State.
To meet the obligation of the State share for acquisition of land/structures for establishment of AIMS at Vijaypur and Awantipora, Rs 87.09 crore is proposed to be provided. Similarly, Rs5crore as State share has been provided for establishment of five new medical colleges.
To augment the healthcare sector Rs1 crore has been proposed for construction of Red Cross House at Srinagar, Rs3.18 crore to complete various works of Health and Medical Education Department in the Doda district as per directions of the Governor, Rs32 crores additional State share for 5 new Medical Colleges, Rs1.50 crore for purchase of 5 critical care ambulances for hilly districts, establishment of Cath Lab at the estimated cost of Rs.8.00 crore at SMHS Srinagar, Rs8 crore for establishment/procurement of MRI at SKIMS Medical College (JVC Bemina), Rs1 crore for establishment of Drug-de-addiction centre at SKIMS Medical College (JVC Bemina) and Rs 3 crore for upgradation of Sonam Narbo Hospital, Leh to 300 bed capacity.
Required funding to be provided for having more Jan Aushadhi centres in the State.
Rs 300 crores proposed to be provided over and above the normal outlay, PMDP funding and Centrally Sponsored Schemes for development of power distribution system to ensure complete transformation of power network by the end of financial year 2019-20.
Grants and loans of J&K State Power Development Corporation to be turned into the equity base of the Corporation for its financial restructuring. The Government intends to put in place professional Board of Directors and sound professional team of management to achieve the objectives of JKSPDC turning into a bigger company.
J&K has achieved the distinction of reaching every households by way of providing power through various sources. It is equally important that the consumers pay for the power it consumes. Non-collection of power tariff is the biggest drain on State exchequer. While -provisions for power purchase has been enhanced to Rs5261 crores in RE 2018-19 against the original budgetary provision of Rs4700 crores, the provision of Rs5000 crores has been kept in Budget Estimates of 2019-2020. In addition, the Government is hopeful to receive the concurrence of Union Finance Ministry to grant permission for raising Rs3500 crores state bonds to address the past power purchase liability.
To check power pilferage and ensure all consumers pay for the power it consumes, PDD is in the process of procuring and installing prepaid smart meters in all the households/ business establishments etc. Necessary funds have been made available in this regard.
To brighten the evenings and improve the night life, Rs10crore will be provided to install minimum of 100 high mask lights in the cities of Srinagar and Jammu.
To promote Solar Power, Rs10 crore has been provided in the Revised Estimates 2018-19. Further, an amount of Rs45 crore will be provided for promotion of solar power including solar heaters in the year 2019-20.
PHE/ Irrigation & Flood Control
Providing safe drinking water supply to people is the most basic expectation of the masses from the Government. A large number of drinking water supply projects have either not been completed or malfunctioning due to various reasons. A sum of Rs 1500crores is proposed to be provided to augment the drinking water supply across the State in the proposed budget.
Jammu city is rapidly expanding and faces massive water supply problem during summers. A mega project to provide drinking water supply from Chenab river is expected to be funded by ADB for which required commitment from the State budget will be met.
The Government of India has recently approved a project on Ujj river for irrigation/ drinking water supply and another long pending irrigation project of Shahpur Kandi. These two projects will transform the entire kandi belt of Kathua and Samba districts. Necessary State share towards these projects is being provided in the proposed budget.
To boost irrigation facilities Rs 150crores is proposed to be spent during 2019-20.Rs12crore provided for purchase of dredgers for Irrigation & Flood Control Department, Kashmir.
Roads and Buildings
Annual budgetary allocation for macadamization of roads proposed to be enhanced from Rs 100 crore to Rs 400 crores in 2019-20. Roads and Buildings department will make all efforts to use new technologies to the extent possible.
Budgetary allocation for land acquisition for roads including those funded by PMGSY, NABARD proposed to be enhanced from Rs 30 crore to Rs100 crores for 2019-20.
Rs20 crore proposed for beautification of bridges and flyovers in the cities of Srinagar and Jammu during 2019-20.
To complete pending works of roads, bridges etc languishing for many years, an additional sum of Rs 1000 crores will be spent during 2019-20.
Housing and Urban Development
To promote planned expansion of the twin capital cities of Jammu and Srinagar, Metropolitan Authorities will be created for which an initial provision of Rs100 crores has been made. This will be supplemented by funding available under Smart Cities and institutional borrowing.
Drainage, sewerage and construction of STPs have been the neglected areas in our developmental narrative. It is a matter of great concern that world-famous tourist resorts of Gulmarg, Sonamarag, Patnitopetc do not have STPs and therefore discharge into various water bodies. The city of Jammu has only one partially functional STP while Srinagar requires more STPs to tackle the problems of large amount of sewerage going into Dal lake causing perennial problems. Further, proper drainage and sewerage in other towns of the State is also required.
An allocation of Rs 500 crores towards construction of drainage and sewerage, STPs and solid waste disposal plants across the State is proposed in the balance part of the current year and during next financial year.
An initial sum of Rs 10 crore is proposed to be provided for riverfront development in Jammu city including connecting Vikram Chowk with Gujjar Nagar bridge along the river Tawi.
Industries and Commerce
The pending issues of amnesty on interest and penalty of past power dues of industries has been resolved.
While in the past budget, the issue of fiscal support to the industries was the primary focus, there is need to look at the infrastructure bottlenecks and address the same to facilitate industrialization in the State. Most of the industrial estates are old with dilapidated infrastructure. Further, upcoming industrial estates have also not been provided the required infrastructure.
Under “Ease of doing Business”, the State of Jammu and Kashmir has moved its position from 31st to 22nd and is expected to further move to around 15th position among all States. In order to support this process, various e-governance projects need to be funded.
Rs400 crores proposed to be spent on augmentation of infrastructure including waste disposal in all existing and upcoming industrial estates and also to support the process of improving “Ease of doing Business”.
The State Government has recently approved granting old age pension to 40000 new pensioners and budgetary allocation has been provided for the same. Further, Rs4crore is proposed for improvement of Bal Ashrams, home for mentally ill persons and old aged persons. All existing schemes of Social Welfare Department for deprived sections of the society have been fully funded.
Under the PMDP, tourism sector has got a major boost by way of assured funding of Rs2000 crores for tourism infrastructure building. In addition, Rs130 crores to be provided for augmentation of the staff of Tourism Department for 2019-2020 which would also include creation of PMU or a dedicated cell for effective promotional campaign throughout the Country and World.
Youth Services &Sports
Sports infrastructure has remained a neglected area in the State hampering the holistic development of its youth. In order to complete all ongoing works of stadiums, play fields including game specific infrastructure, Rs 350 crores has been proposed to be spent during 2019-2020. It includes establishment of 5 synthetic football turfs, 5 synthetic astro turfs for hockey, 90 basketball courts, 80 volleyball courts, 102 badminton courts, 50 handball synthetic courts, 500 Table Tennis courts, 4 synthetic maintenance machines, 7 lawn tennis courts, 40 cricket net/wicket, 24 bowling machines, 22 cricket pitch roller, 1 shooting range, 6 swimming pools, 8 roller skating rinks, 2 climbing walls, 2 cycling track, 6 synthetic athletic track, 2 archery filed and 1 synthetic rugby playfield.
An initial provision of Rs 5 crore has been provided in the budget to promote youth exchange programmes.
In absence of textbooks and other study materials to clear competitive examinations, the students from J&K in adequate numbers do not qualify for All India Service examinations, banking examinations and other national level competitive examinations. It is proposed to provide textbooks of all subjects and other required study material to clear competitive examinations including IAS/KAS and Banking examinations. A sum of Rs 3.50 crore in the financial year 2019-2020 at Rs 50 lakh each for the purpose is provided. These books and study material will be provided either in the District Libraries or the counselling centres operated by the Employment Department. In the first phase districts of Pulwama, Baramulla, Kupwara, Kathua, Poonch, Doda and Leh will be taken up.
The government also plans to invite reputed career counsellors to visit Higher Secondary Schools and Colleges to make the students aware of opportunities available to them across various fields. A sum of Rs.2.00 crore has been provided for this purpose.
Due to frequent disturbances, the transport in private sector has suffered a lot and there is a need to support the private sector for providing quality buses for transportation in the state. It is proposed to subsidize 500 new large busses in the private sector. Accordingly, Rs 25 crore has been provided in the budget. Transport Department in consultation with Finance Department will work out the modalities/guidelines in this regard.
Urban transportation particularly in the cities of Srinagar and Jammu cities comprise mainly of matadors. The bus service in these two capital cities is completely absent causing increased traffic volume on the roads. In order to provide for low floor busses in these two cities, an initial sum of Rs 25 crore is provided in the budget. A decision would be taken regarding this new service to be run by SRTC or Smart City Corporation or altogether to a new company.
For revival of SRTC by way of augmentation of its fleet, in the Revised Estimates for the current year Rs 10 crore is proposed to be provided for purchase of 45-50 new buses to be deployed largely in hilly districts of the State. Rs 25 crore is further proposed to be provided for purchase of new busses by SRTC in 2019-20 for plying on long routes. An additional Rs 2 crore each will be provided for purchase of buses for Leh and Kargil and Rs 1 crore for Gurez which remain landlocked for half of the year.
Computerisation/digitization of land records is of paramount importance. While the pace has gathered momentum, the required additional assistance of Rs5.00 crore is being provided for its early completion.
Revenue Department machinery at the grass root level comprising of Tehsildars and Sub-divisional Magistrates are without vehicles and office. 50 new vehicles will be provided for Tehsildars/ SDMs having no vehicles to ensure their mobility not only for their departmental work but also in view of the fact that they perform magisterial duties during frequent law and order problems. Revenue Department is also in the process of levying service fees for various activities like land acquisition, issuance of certificates of various kinds etc which would go to “Revenue Infrastructure Fund” to take care of various emerging infrastructure needs of the Department.
Rs 50 lakhs to be provided for nomination preparation process for “World Heritage Licensing by UNECSO of Mughal Gardens”.
To establish dedicated art gallery at Srinagar as well as Jammu, an initial provision of Rs1 crore is being made. Planetarium at Jammu near Kala Kendra would be taken up for construction for which a provision of Rs1crore is being made.
Mobile library for far off and remote villages would serve the deprived population well. Accordingly, 4 such units will be established in the year 2019-2020, for which Rs1crore will be provided. A Heritage Society is proposed to be created withan initial token amount of Rs1 crore.
An emerging need for exposition, preservation and promotion of state’s art and culture is to have Art and Culture Centres at the districts and places of prominence representing unique heritage of local arts and crafts – early and cotemporary. These centres would focus on art, music, theatre, film, design, eco concerns, flora & fauna, resource points for talent hunt and skill development, cultural and education events etc. The Centres would include cafes, craft shops, commercial, mini art galleries, book shops, art library etc.
In next Financial Year 2019-20, to begin with eight such Centres would be setup at the districts of Leh, Kargil, Bandipora, Shopian, Budgam, Kathua, Kishtwar and Udhampur to work under a centrally based Society with required infrastructure. A token provision of Rs 25 crore is being made during the Financial Year 2019-20 towards matching share. Human resources, requisite equipment and infrastructure will be covered under the scheme to be launched by the department of Culture.
Rs 9000 crore provided for meeting additional financial requirement on account ofimplementation of 7th pay Commission recommendations. Arrears also being paid to the employees in the current year itself.
Long pending issue of stagnation of KAS and KPS Officers have been addressed. Similarly, induction from various feeding services to the KAS particularly in the case of Secretariat Non-gazetted service has also been addressed. Around, 27000 posts have been created to regularise the teachers recruited through Rehbar-e-Taleem (ReT) and Sarwa Shiksha Abhiyan (SSA). This measure alone will cost the State exchequer an additional burden of Rs1000 crores.
Anti-Corruption Bureau (ACB)
Rs 4. crore proposed to be provided for construction Anti-Corruption Bureau (ACB) headquarter at Srinagar.
Robust IT infrastructure has now become the basic need to monitor effectively the developmental works. In order to avoid transportation of large number of computers and other electronic equipment with each durbar move, Rs15 crores have been provided for purchase of hardware and software for the Civil Secretariat, Jammu. Henceforth, the computer infrastructure for Jammu will remain stationed at Jammu and the same will be left at Srinagar while moving to Jammu.
Rs5crores to be provided for digitization of office records of Civil Secretariat and Rs3crore for installing robust LAN Network.
The twin districts of Ladakh and Kargil has only six months working period so far as construction activities are concerned. Further, inadequate funding of the projects has resulted in a large number of languishing projects in the two districts. Accordingly, all such languishing projects have been taken up for funding by the State sector and are expected to be completed at the cost of more than Rs300 crores.
District Development Commissioners
The institutions of District Development Commissioners are proposed to be strengthened by way of providing untied grants to supplement the smaller needs of development across various sectors. Rs1 crore each has been provided to all District Development Commissioners for the purpose and similar amount will be provided in the next financial year as well. The two aspirational districts of Baramulla and Kupwara has been provided Rs1 crore each over and above this untied grant.
Big push to Infrastructure – Rs 30469 cr earmarked for investment in development sector during 2019-20
Rs 3631 cr additional investment in 1643 languishing projects
To build spending capacity, Line Departments to be provided funds for hiring Consultants, creating DPR Preparation Cells, Project Implementation Agencies, IT consultants etc
Rs 2573 cr to flow to Panchayati Raj Institutions & Rs 1030 cr to Urban Local Bodies in next 15 months
Every Panchayat to get Rs 20 lakh to Rs 1 crore depending upon area, population
2000 posts of Accounts Assistants proposed to be created for Panchayati Raj Institutions
MGNREGA funds proposed to be supplemented by 10% capital infusion from the State Exchequer to create quality assets
State allocation for Rural Development Department proposed to be doubled to undertake works of urgent public need
Rs 7 cr state share proposed to be provided to Rural Development Department for solid waste management
Rs 1 cr additional funds proposed to be allocated to Rural Development Department for construction of quality pathways in mountainous villages
Annual allocation to Agriculture Sector proposed to be enhanced by Rs 20 cr
50% subsidy proposed for all new Controlled Atmospheric Stores to be established next fiscal
50% subsidy for refrigerated vans for transportation of perishable vegetables/fruits
Provision of Rs 9.18 cr to meet freight subsidy for transportation of cut-flowers to promote commercial flower cultivation
Rs 250 crproposed to be allocated for upgradation of infrastructure in existing, New Degree Colleges
Rs 100 cr proposed to be allocated for providing benches and desks for students in primary and middle schools
Rs 45 cr proposed to be allocated for providing assured electricity, drinking water supply to schools
Rs 5.5 cr proposed to be allocated for reactivating EDUSAT, setting up additional Smart Classrooms in schools
Rs 3.50 cr proposed to be provided to help prepare students for competitive exams like IAS/KAS/JEE/NEET/Banking
Rs 1000 cr proposed for regularization of RRTs, SSA teachers
Rs 350 cr proposed for completion of under-construction buildings of Medical Colleges, District/ Sub-district Hospitals, PHCs etc
Rs 100 cr proposed for onetime augmentation of equipment in hospitals
Rs 87.09 cr state share proposed for AIIMS Vijapur& AIIMS Awantipora
Rs 32 cr additional State share for 5 New Medical Colleges
Rs 1.50 cr for purchase of 5 Critical Care Ambulances for hilly districts
Rs 1 cr for establishment of Drug-de-Addiction Centre at SKIMS Medical College Bemina
Sonam Narbo Hospital, Leh proposed to be upgraded to 300 bedded Hospital for which a provision of Rs 3 crore has been made
Rs 5000 cr earmarked for power purchase
Rs 300 cr proposed over and above normal outlay, PMDP and Centrally Sponsored Schemes for upgradation of power distribution network
Rs 55 cr proposed for promotion of Solar Power
PHE/Irrigation & Flood Control
Rs 1500 cr allocation proposed to augment drinking water supply
Mega drinking water supply project on Chenab River to be taken up for execution to augment potable water supply in Jammu
Rs 150 cr proposed for upgradation of irrigation facilities
State share provided for Shahpur Kandi Dam project and Ujh multipurpose project
Rs 12 cr provided for purchase of dredgers for Irrigation & Flood Control Deptt
Roads and Buildings
Additional Rs 1000 cr proposed for completion of languishing connectivity projects
Annual allocation for macadamization proposed to be enhanced from Rs 100 crore to Rs 400 cr for 2019-20
Rs 100 cr proposed for land acquisition of PMGSY roads
Rs 20 cr for beautification of bri9dges and flyovers in Srinagar and Jammu
Industries & Commerce
Rs 400 cr proposed for augmentation of infrastructure including waste disposal in existing and upcoming industrial estates
Pending issues of amnesty on interest and penalty of power arrears of industries resolved
Budgetary allocation provided for coverage of 40000 new pensioners under old age, widow, destitute scheme
Rs 4 cr proposed for improvement of Bal Ashrams, Home for Mentally Ill Persons and Old-Aged Persons
Full funding provided for all existing schemes of Social Welfare Department for underprivileged sections of society
Rs 130 cr for tourism promotion in addition to Rs 2000 cr under PMDP for infrastructure upgradation
Rs 50 lakh for nomination preparation process for “World Heritage Licensing of Mughal Gardens by UNESCO”
Rs 1 crore each proposed for establishing dedicated Art Galleries in Srinagar and Jammu
Rs 1 cr provided for construction of Planetarium near Kala Kendra Jammu
Rs 25 crore to be provided for establishment of Art & Culture Centres at district level
Youth Services & Sports
Rs 350 cr proposed for massive upgradation of sports infrastructure
Rs 5 cr for promotion of youth exchange programmes
Rs 4 cr for construction of Anti-Corruption Bureau Headquarters
Rs 2 cr each untied grant provided to all District Development Commissioners for current and next fiscal
Aspirational districts of Baramulla and Kupwara provided Rs 1 crore each over and above untied grant
Rs 25 cr for subsidy for purchase of 500 new buses in private sector
Rs 36 cr for revival of SRTC
Rs 25 cr for purchase of Low Floor Buses
Housing & Urban Development
Metropolitan Authorities to be created for Srinagar and Jammu with an initial outlay of Rs 100 cr
Rs 500 cr for construction of drainage and sewerage network, STPs
Rs 10 cr for installing high mask lights in Srinagar and Jammu
Rs 10 cr proposed for riverfront development in Jammu city and connecting Vikram Chowk with Gujjar Nagar bridge along river Tawi
Rs 15 cr for providing dedicated IT infrastructure at Civil Secretariat, Jammu to avoid relocating of computers and other paraphernalia during Durbar Move
Rs 5 cr for digitization of office records of Civil Secretariat
Rs 3 cr for installation of robust LAN Network in Civil Secretariat
42376 new posts created during past 5 months includingaround 27000 posts for regularization of Teachers engaged under RReT and SSA schemes
Rs 300 cr for languishing projects taken up for completion