The Jammu and Kashmir government on Wednesday presented Rs 79,472 crore deficit budget laying emphasis on pro-employees welfare initiatives, including the implementation of 7th Pay Commission from April next year.
State Finance Minister Haseeb Drabu in his Budget speech in the Assembly said the focus will be on timely rollout of projects under PMDP to the tune of Rs 80,000 crore for development and reconstruction of physical and economic infrastructure. Various initiatives were also announced including insurance to government properties, crops, heritage properties and various types of financial aid for workforce in different sectors.
"During 2017-18, the state government intends to spend almost Rs 79,472 crore. Of this, developmental expenditure would be about Rs 31,000 crore and current expenditure would be almost Rs 49,000 crore," Drabu said.
"This level of expenditure will be financed through non debt creating receipts of Rs 58,000 crore and about Rs 18,000 crore of borrowings," he said.
"Given the composition of our revenues, we have a surplus of more than Rs 9,300 crore. Yet, here will be a resource gap of Rs 3,137 crore for which ways and means have to be found during the course of the year," he said.
While the total receipts are to the tune of Rs 76,335 crore, the total expenditure is to the tune of Rs 79,472 crore resulting in deficit of Rs 3,135 crore, he said. He said in the new scheme of federal finance, centrally sponsored schemes account for a major part of the capital expenditure budget.
"Significant resources are also committed towards meeting the required state share for accessing central funds under the CSS and for putting in counterpart share for World Bank/ADB funded projects and now the Prime Minister's Development Package (PMDP)," he said. The package caters to the need to strengthen the economic and social infrastructure and provide for balanced development of the three regions of Jammu and Kashmir, he added.
"The major focus in the infrastructure sector will be on physical connectivity through upgradation of road network. All unconnected roads and hamlets will be covered through different projects," he added.