Jammu and Kashmir sets ambitious targets in budget
17 January 2007
Indo-Asian News Service
Jammu: The Jammu and Kashmir government has set ambitious targets for per capita income and growth rate in the budget for fiscal 2007-2008 presented Wednesday despite a decline in the state's tax revenue.In his maiden budget speech in the legislative assembly, Finance Minister Tariq Hameed Karra laid out the promise of 6.5 percent growth rate as against 5.8 percent in the current year and a per capita income of Rs.21,362 as against the existing Rs.18,768.He said the total receipts during the current year are estimated at Rs.14,163 crore against the budget estimates of Rs.14,436 crores, of which Rs.11,981 crores represents revenue receipts and Rs.2,182 crores are capital receipts. The shortfall in receipts is mainly on account of the non-release of Rs.300 crores under the power reform grant, which will be flowing only in the next financial year.Receipts on the capital account, which were budgeted at Rs.725 crores, are likely to go up to Rs.886 crores. While market borrowings will remain at the budgeted level of Rs.167 crores, loans from financial institutions will be up from estimated Rs.254 crores to Rs.415 crores, he added. With regard to revenue and expenditure projections of 2007-08, Karra said the total receipts for 2007-08 have been estimated at Rs.16,267 crores of which Rs.13,555 crores constitute revenue receipts and Rs.2,712 crores as capital receipts.'We are likely to receive an amount of Rs.1,471 crores as share in central taxes. Further, other central transfers are expected to be of the order of Rs.8,822 crores. The estimates for plan assistance, which includes an amount of Rs.850 crores under the Prime Minister's Reconstruction Plan, has been kept at Rs.4,755 crores as against the revised estimates of Rs.3,921 crores for 2006- 07.'During 2007-08, it is proposed to mobilise additional resources of the order of Rs.150 crores through new fiscal and rationalization measures,' he added. Referring to state's own revenues, he said non- tax receipts did not indicate an encouraging trend. Against the last year's revised estimate of Rs.727 crores, the actual realisation was only Rs.536 crores. The receipts during the current financial year are also expected to be less by Rs.217 crores against the budgeted level of Rs.821 crores. The principal reason is the shortfall in power revenue collection - down to Rs.407 crores from Rs.600 crores.