SrinagarGiving an up-beat account of Jammu and Kashmirs economic performance over the past year, finance minister Dr. Haseeb Drabu on Wednesday said that the states fiscal deficit had come down to an unprecedented 5.7 per cent against an estimated 9.5 per cent, with tax revenues having crossed the Rs 10,000 crore mark, and instead of a projected resource funding gap of Rs 3000 crore, the kitty now had a surplus of Rs 1,300 crore.
Dr. Drabu was winding up discussions in the state legislature in Jammu where he had tabled the finance bill last Thursday.
It is perhaps for the first time in the budgetary history of the state, that revised estimates of the current year are better than the budget estimates that I had presented last year, an official press statement from Jammu quoted him as having said.
He stressed that the system building his government had started in 2015 had had a positive impact.
It had taken his government three years to restore a rotten fiscal system and steer the state out of a serious fiscal crisis brought on by factors like protracted political turmoil, the 2014 floods, the 2016 disturbances, demonetisation and the GST, he said.
Terming his financial outlay for this year as a stakeholders budget, Dr. Drabu said that it was aimed to generate income across various levels of people, pump money into the system, and push economic revival through sustained effort.
This is perhaps the first budget that is not about government departments but about stakeholders encompassing every section of the society, including the poorest of the poor, the marginalized, employees, traders, industrialists, agriculturists, women, girls, students, youth and the destitute, he said.
Defending the decision of keeping the Toll Tax regime intact in the GST era, Dr Drabu said it is vital to the policy making in the state. It is not a matter of revenue as that is too small an amount, he said. It is vital to the requirements of the state to know what and how much comes and goes out of the State. It is the only gateway we have and the information is required for the protection of the local industry. Trade balance is something that we must always know and the gap in it is surging.
Dr Drabu said the toll tax has been there since 1938. Between 2003 and 2010, it increased by half and now it saw a marginal shift and it has suddenly become an issue. Toll is more important for protection of local industry, he said.
The Finance Minister said that the government has recently increased the minimum wages of un-skilled, skilled and highly skilled workers and this move will in turn raise the market wages prevailing in the state thereby increasing the incomes of the poorest. He further said the proposed uniform Labour Code will be a landmark initiative for the welfare of the labourers.
Responding to the concerns of the Legislators regarding J&K Bank, Dr Drabu assured the House that although he favours complete autonomy in the functioning of the Bank, but as a regulator he will take the requisite measures to address the issues concerning the Bank. We would look into the issues, if any, in the JK Bank and ensure that its functioning is made more transparent. However, it should not be a reason for getting the issue to the House for a debate because it has costs for the finance institution, he maintained.
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