Economic Survey Depicts Mounting Liabilities

Economic Survey Depicts Mounting Liabilities

5 March 2011
Greater Kashmir
Sumit Hakhoo

Jammu: Depicting miserable financial position, Jammu and Kashmir has an outstanding debt of Rs 28, 724 crore at the end of 2009-10 which include an internal debt of Rs 15,449 crore. As per the Economic Survey tabled by the government in the Legislative Assembly on Saturday, liabilities of the state have gone up by Rs 4449 crore and touched Rs 28,724 crore during last fiscal against Rs 24,275 crore in the year 2008-09. Figures reveal that Public Debt, including internal debt of the state government and loans and advances from the central government increased by Rs 2122 crore taking it to Rs 18,593 crore by the end of 2009-10 from Rs 16,471 crore in 2008-09. Likewise, interest payment on debt and other liabilities, totaling Rs 2139 crore forms 14 per cent of the Revenue expenditure of Rs 15, 324 crore. Survey says that interest payments on public debt touched Rs 1667 crore (internal debt Rs 1584 crore and loans and advances from central Government Rs 83 crore) and Rs 472 crore on other liabilities. Expenditure on account of interest payments increased by Rs 561 crore during 2009-10. As per the Economic Survey, Government has obtained Rs 2974.33 crore as temporary loans from the J&K Bank till March 2010 to meet its various expenditures. “The total temporary loans raised during the year amounted to Rs 3517.55 crore. A balance of Rs 2290.25 crore was also outsourced on April 1 2009 taking the total temporary loans to 5807.8. Government repaid Rs 2842. 74 crore during the year leaving a balance of Rs 2965.05 crore on March 31 2010,” said the survey. The Survey said that Loans and Advances from Central Government was Rs 3144 crore and other liabilities under public account accounted for Rs 10131 crore which does not include the investment of Rs 11 crore made in Calamity Relief Fund-Investment Account out of Calamity Relief Funds. As the state also acts as a banker and trustee in respect of deposits of the people like small saving collections, Provident Funds and deposits, there has been an overall increase of Rs 2316 crore (Rs 2327 crore – Rs 11 crore) in respect of such liabilities of State Government during 2009-10. Astonishing facts include that an internal debt of Rs 5663 crore raised during 2009-10 was used entirely for discharge of debt obligations (Rs 3550 crore) and payments of interest Rs 2139 crore. Sending warning to discipline the debt position of the state, the economic survey said, “A part of these obligations also had been discharged from our own resources. In comparison, the utilization out of internal debt of Rs 5578 crore raised in 2008-09 to meet these obligations was to the extent of only Rs 4930 crore. Rest was available for development”. Grant-in-Aid from Government of India have a contribution of Rs 8956 crore and Rs 11691 crore in the total receipts for the year 2008-09 and 2009-10 constituting 62.62 per cent and 66.47 per cent of the total receipts of respective years. The survey said that Grant-In Aid have recorded an increase of 10.05 per cent and 30.05 per cent during 2008-09 and 2009-10 over respective previous years.


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