Sitharaman proposes ₹1.18 lakh crore interim budget for J&K

Union finance minister Nirmala Sitharaman on Monday proposed an interim budget of ₹1.18 lakh crore for fiscal 2024-25 for Jammu and Kashmir.

The interim budget envisages a fiscal deficit of ₹20,760 crore and a 7.5% growth in gross state domestic product (GSDP).

The capital expenditure has been proposed at ₹38,566 crore, which is 14.64% of the GSDP, according to the budget tabled by Sitharaman in Parliament. The revenue receipts for the next fiscal stood at ₹97,861 crore.

According to Sitharaman, the crucial reforms undertaken in 2019 enabled “path-breaking” measures by the Union Territory administration to decentralise governance structure, promote inclusive development, upscale revenue generation and step up infrastructure development.

“The government is maintaining law-and-order to ensure security while simultaneously implementing initiatives for economic and social development. The government has adopted a policy of zero-tolerance against terrorism,” Sitharaman said. Security forces are taking effective and continuous action in countering terrorism.

Due to the effective measures and efforts taken, the security scenario in J&K has significantly improved, Sitharaman added.

The finance department of the UT administration had drafted the supplementary budget for the current year and the interim budget for the next financial year. For this, the finance department had assessed the revenue receipts of the UT administration from GST, motor spirit tax, excise and stamp duty. Further, the non-tax revenue from electricity and water supply, mining royalty, timber sales, annual rent from industrial lands, etc were also examined. The revenue of the UT has been estimated at ₹20,867 crore.

The UT administration also pursued Union government for getting central financial assistance. The Union government has agreed to provide ₹41,751.44 crores to the UT administration in this financial year and ₹37,277.74 crores in the next financial year.

The budgetary exercise focused on the imperative of advancing the cause of the greater collective good within the realistically realizable resources. While the budgetary estimate for the next financial year 2024-25 is about ₹1,18,728 crore, the UT administration has proposed the vote on account for ₹59,364 crore.

This interim budget covers revenue expenditure of ₹40,081 crores and capital expenditure of ₹19,283 crore.