J&K Faces Major Cuts Under SPA, Market Borrowings

J&K Faces Major Cuts Under SPA, Market Borrowings

15 March 2014
The Daily Excelsior


Jammu: With just a fortnight left for completion of current financial year of 2013-14, Jammu and Kashmir was still awaiting Rs 1074 crores worth Special Plan Assistance (SPA) and Rs 1100 crores under Market Borrowings leading to a situation almost similar to the one in 2012-13 when the State had lost Rs 1666 crores due to cuts imposed by the Planning Commission of India. Official sources told the Excelsior that the State has received Rs 1000 crores out of total approved Rs 2074 crores worth SPA from the Union Finance Ministry on the approval of the Planning Commission of India so far. Another Rs 400 crores were in the pipeline, they said, but admitted that even after the receipt of another installment of Rs 400 crores in the next couple of days, the State would be left with Rs 674 crores worth SPA. “We have received Rs 1000 crores under SPA. We have been assured that Rs 400 crores more under the SPA were in the pipeline. However, for remaining Rs 674 crores, the officers of Planning and Finance Departments had to make lot of efforts to get the amount released in the remaining fortnight. The amount would lapse if not released till March 31, 2014,’’ sources said. Not only the SPA, the Government was also worried on another front as it has not been allowed to go for market borrowings worth Rs 1100 crores, which were also part of Rs 7300 crores worth annual plan of the State for current financial year of 2013-14. During the last financial year also, the State had not been allowed to go for Rs 1000 crores worth market borrowings notwithstanding the fact that they were part of the State’s annual plan. “With very little time left in the current financial year, very little hope was now left for the State to go for market borrowings,’’ sources admitted but didn’t rule out anything on the ground that a fortnight has enough time to take decisions of financial importance. During last financial year of 2012-13, the Planning Commission of India had imposed a cut of Rs 1666 crores in the annual plan of Jammu and Kashmir including Rs 451 crores under SPA, Rs 215 crores under Share of Central Taxes and Rs 1000 crores of Market Borrowings reducing its annual plan of Rs 7300 crores to just Rs 5634 crores. For 2013-14 also, the Planning Commission had approved Rs 7300 crores worth annual plan for Jammu and Kashmir despite State’s insistence on Rs 8000 crores apart from Rs 600 crores under the Prime Minister’s Re-construction Plan (PMRP). Even for the next financial year of 2014-15, the State has projected Rs 7300 crores plan size besides Rs 600 crores under PMRP and Rs 4000 crores under the Centrally Sponsored Schemes for Jammu and Kashmir. Sources were of the view that instead of pursuing for Rs 1100 crores worth market borrowings, the State would pitch for release of total Rs 2074 crores worth SPA as it has identified and submitted 15000 development works to the Planning Commission of India, which it has already undertaken on the basis of approval given to the SPA during plan finalisation last year. “While the Market Borrowings had to be returned with interest, the State had right over the SPA as per the approved annual plan,’’ sources said. For next financial year of 2014-15, the State has projected Rs 7300 crores worth annual plan, Rs 600 crores worth Prime Minister’s Re-construction Plan (PMRP) and Rs 4000 crores under Centrally Sponsored Schemes taking total amount to Rs 11,900 crores.