BILAL HUSSAIN
In the budget 2012-13 out of the total revenue expenditure, salaries of the government employees account for the biggest chunk, estimated to reach Rs 13,115 crore, inclusive of the provision of Rs 700 crore for fresh DA installments, a plan salary component of Rs 369 crore and grants-in-aid of Rs 658 crore. The expenditure on pensions including other retirement benefits, is estimated at Rs 3,025 crore. The total expenditure on salaries and pensions will, therefore, rise to Rs 16,140 crore during the next financial year.
The politicians repeatedly talks about burgeoning salary/ pension bill which is now a fact, rather than reiterating it time and again they should accept it, move ahead and plan accordingly. However, something that state doesn't make public is: who takes away major share under this bill? Dwelling deeper all I could gather was that the Home Department this fiscal 2012-13 has put a demand for [Revenue: Rs 3090 crores, Capital: Rs 73 crores] which means a total of Rs 3163 crores.
The Home Department get as much as 20 percent of total salary and pension bill of the state, which otherwise should have been the core of concern for the government. The Home Department is the major recruiter after education sector in the state. Neither the state nor New Delhi has any issue with burgeoning size of the Home Department as it serves the both and ensures the two remain tied with golden chains.
While the highest bill is secured by the Education Department that has put a demand for [Revenue: Rs3236 crores, Capital: Rs 485 crores] a total of Rs 3721 crores, which to most is a noble expenditure. However, the Higher Education Department has put a demand for fiscal 2012-13 at [Revenue: Rs 455 crores, Capital: Rs170 crores] a total of Rs 625 crores only; isn't it something to be pondered about? The bill on account of education sector is something that the state always justify by clubbing it with social obligation on part of the government.
However, the pattern of state's expenditure reveals interesting things: By heavily investing in primary education the establishment imbibes Indian history in fresh gray matter, not their 'own history' and leaving comparatively higher education high and dry.
And at the time when the state has over six lakh unemployed youth registered with various employment exchanges across Jammu and Kashmir, focus should have been on industrial development. However, one gets astonished to see the allocations for Industry and Commerce Department that has put a demand for [Revenue: Rs 211 crores, Capital: Rs 127 crores] a total of Rs 338 crores only for coming fiscal, which is a tenth of what Home Department has budgeted for current financial year.
The government pats their own back by claiming to have achieved lot in terms of internal resources but what about the huge public debt? The outstanding Debt at the end of 2010-11 stands at Rs 31272 crore, comprising Internal Debt of Rs 17835 crore, Loans and Advances from Central Government Rs 2032 crore and other liabilities accounted for under Public Account Rs 11405 crore, which does not include the investment of Rs 11 crore made in Calamity Relief Fund Investment Account out of Calamity Relief Funds.
While, interest payments on debt and other liabilities totaling Rs 2283 crore constituted 12.4 percent of revenue expenditure of Rs 18466 crore. The interest payments on public debt were Rs 1783 crore (Internal Debt Rs 1649 crore and Loans & Advances from Central Government Rs 134 crore) and Rs 500 crore on other liabilities, all this should be a matter of serious concern for the policy maker but the present budget like past ones have neglected it as it is now a normal thing for them all.
The Finance Minister Abdul Rahim Rather recently on record has said that the state was only getting its share as per the constitutional arrangement between union government and the states. “An impression is being created that we are dependent on New Delhi for our financial resources and the state’s economy is in shambles,” Rather has said while concluding the discussion on the budget in the Legislative Assembly.
Under the Article 268 to Article 280 of Constitution of India that deals with the matter and provide complete guidelines with regard to the distribution of taxes between the Center and the states. The state is not dependent on Union Government and is entitled to the share on central taxes collected in the state. As per the constitutional provision the central taxes go into Divisible Poll and under Article 280 the President of India appoints Finance Commission every five year, which beside other things decide on the share a state is entitled on the taxes collected during this period. So what the state is getting every year form the Center is its share and as a part of constitutional scheme. Rather has also said that it was being wrongly claimed that the state is completely dependent on New Delhi for its financial resources.
According to the state the power sector's burgeoning losses hamper the fiscal management of the state. Against power purchase bill of Rs 3000 crore, revenue on this account is expected only to the tune of Rs 1100 crore this year. The government is contemplating to start energy accounting to check loopholes in the power sector. The power consumption and revenue realization is expected to be monitored at feeder level to fix responsibility and make the concerned staff accountable. While, this all is good but what about the heavy transmission and distribution losses, who is accountable for that and why should the general masses bear the brunt?
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