Creation Of New Admin Units May Erode Development Base

Creation Of New Admin Units May Erode Development Base

19 March 2014
Rising Kashmir
Asem Mohiuddin

Srinagar: The decision of Omar Abdullah- led coalition government to create new 659 administrative units may work out as poll plank in the election season but increasing workforce and further expansion of government machinery may be major financial challenge for the State. The Comptroller Audit General (CAG) report has revealed that the expenditures in the State has gone upto 46 per cent during the last financial year and the expenditure on payment of interest has increased upto Rs 2707 crores. It states that the newly administrative units in the State would increase the financial requirements to a very high and unacceptable level for want of workforce and infrastructure. As per the audit observations, in addition of expenditures to run new administrative units, the fully reimbursement of arrears to the employees and pension as per the commitment of 6th Pay Commission is increasing the financial load to the State exchequer. The economic experts have stated that Rs 2000 to 2500 crores may be needed annually to make these units functional, which were largely created on political lines. 'The four major sectors including Salaries, Power, Pension and Interests are draining out the State exchequer with the consumption of over 80 per cent states revenue and leaving little to invest in other sectors. It would be a further burden to manage the expenditures of new administrative units in terms of workforce and infrastructure,' CAG observes. As per the figures, the State is bearing expenses of over Rs 10,298 crores for salaries of 4.20 lakh employees and Rs 3463 crores for pensioners. For the purchase of power, the government has spent nearly Rs 4400 crores in 2012-13. The CAG report further maintains that the ongoing process of regularization of adhoc and daily wager staff would be further troubling state financially. The report has termed the increase in the personal expenditures as a serious concern to the state's financial health. Besides the CAG report has also maintained there may be further increase in non plan budget due to setting up of new units, which may erode the State's resource base for developmental purposes.