J&K’s GSDP expected to grow 7.5 pc during 2024-25 fiscal: LG

By statetimes_editor Last updated Aug 13, 2024

STATE TIMES NEWS

SRINAGAR: Jammu and Kashmir’s GSDP is expected to grow at 7.5 per cent during the current fiscal, Lt Governor Manoj Sinha said on Monday.
“The GSDP (Gross State Domestic Product) for 2024-25 has been projected at Rs 2,63,399 crore (Rs 2.63 lakh crore), showing a growth of 7.5 per cent over the GSDP of 2023-24,” the Lieutenant Governor said while addressing a press conference.
The Lieutenant Governor expressed his gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for accelerated and inclusive growth to fulfill the aspirations of citizens.
The Lieutenant Governor dwelt in detail about the key features of the Budget 2024-25, tabled before the Parliament on July 23, 2024 and passed in both Houses on August 8. He said the size of the Budget 2024-25 is Rs. 1,18,390 crore, which is Rs. 30889 crore higher than the expenditure of 2023-24.
He said while the Revenue Receipt Estimates for 2024-25 is Rs 98,719 crore and Capital Receipt Estimate is Rs 19,671 crore, the Revenue Expenditure has been pegged at Rs. 81,486 crore with sector-wise allocations, Administrative Sector Rs. 9881.68 crore, Social Sector Rs. 24870.50 crore., Infrastructure Sector Rs. 15719.40 crore, Economic Sector Rs. 5555.48 crore., Capital Expenditure (i.e Developmental Expenditure) for 2024-25 is Rs. 36,904 crore with broad sectoral allocation to Administrative Sector Rs. 1190.50 crore and Social Sector Rs. 4217.65 crore, 40 per cent (Rs 1675 crore) of which is allocated for Health and Medical Education. Infrastructure Sector Rs. 11664.45 crore, of which 35% (Rs 4062 crore) is allocated for Public Works, Economic Sector Rs. 6943.20 crore of which 54 per cent (Rs 3731.54 crore) major chunk will be used on Rural Development; Capital Expenditure contribution towards GDP is 14.01 per cent. While GSDP for the year 2024-25 has been projected at Rs 2,63,399 crore, which shows a growth of 7.5% over GSDP of 2023-24, the tax/Gross Domestic Product (GDP) ratio for 2024-25 has been projected at 7.92 percent which is higher than previous year’s 5.68 percent.

Key Challenges & Initiatives of J&K Government

As we all know, historically Jammu and Kashmir has faced challenges in fiscal management due to the unabated pressures of externally sponsored terrorism.
8The high levels of committed expenditure and ATC losses in power sector had accentuated these challenges.
Hence over the past year, the UT government has stressed on revenue augmentation, improving project execution, reducing ATC losses, and improving quality of governance.

Revenue Augmentation

The UT government improved GST return compliance, initiated e-Stamping system, expanded dealer registration and conducted transparent excise auctions.
Tax revenues have increased from Rs 12753 crore in 2022-23 to Rs. 13,900 crore in 2023-24 registering growth of 9%.
GST collection increased by 12% and excise collection increased by 39% in FY 2023-24 as compared to FY 2022-23.
As part of power sector reforms, 5.74 lakh smart meters have been installed by June 2024 resulting in 25% reduction in Transmission & Distribution (T&D) losses and 10% increase in tariff collection per month.
The UT government’s efforts to undertake metering and improve billing and collection efficiency have resulted in non-tax revenues increasing from Rs 5148 crore in 2022-23 to Rs 6500 crore in 2023-24 registering growth of 25%.

Expenditure Reforms

The UT government has effectively leveraged Centrally Sponsored schemes. The UT government intensified efforts to harness central funds through faster execution of works.
This has led to a sharp increase in receipts of funds under CSS from Rs 6400 crore in 2022-23 to Rs 10300 crore in 2023-24.
The UT government has steadfastly undertaken technology reforms to enhance transparency and accountability in budgeting and expenditure management. A systematic drive was started to physically monitor and verify all developmental works through independent officers.
The UT government undertook Aadhar seeding and Biometric verifications systematically for cleaning databases of welfare schemes. The UT government also ensured cost savings through competitive procurements through the GEM and e-Tendering.
These reforms have helped reduce leakages to the tune of Rs. 400 crore per year.

Effective Fiscal Management

During the past few years, the UT government has improved the budgetary transparency. The UT government has repaid power sector dues of about Rs. 28,000 crore which were pending and rising for several years.
For the first time in 77 years, UT contributed to the contingency funds created by RBI; viz. the Consolidated Sinking Fund and Guarantee Redemption Fund.

Major Outlays under Budget 2024-25

Rs. 9400 crore for subsidy and budgetary support for purchase of power from the National grid and the Power purchase agreements with power generation companies.
Rs. 3983 crore for Construction of roads & bridges under PMGSY, CRIF, NABARD loan schemes & Bridge scheme.
Rs. 1875 crore for rejuvenating school education infrastructure and services through funding of Samagra Shiksha Abhiyan (SSA), career counselling services, and setting up of modern schools for quality education with PM SHRI funding

Agriculture and Allied sectors

Establishment of 2,000 Kisan KhidmatGhars (KKGs) for providing facilities to the farming community at their door step. Reinvigorating Agriculture and allied sectors through Holistic Agriculture Development Programme (HADP) by strengthening seed systems, boosting production and productivity, creating agri-business ecosystems and securing livelihoods through enhanced jobs and income creation.

Rural Development and Panchayati Raj

Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), 400 lakh mandays to be generated.
Under HIMAYAT training of around 7000 candidates to be completed.
12,000 additional Self Help Groups (SHGs) to be formed during 2024-25.
600 new panchayat ghars to be constructed under Rashtriya Gram Swaraj Abhiyan (RGSA) with 100% internet connectivity.
2.60 lakh mandays of training to Panchayati Raj Institution (PRI) members under Rashtriya Gram Swaraj Abhiyan (RGSA).
80,000 houses to be constructed under Pradhan MantriAwasYojanaGramin (PMAY-G).
06 Villages to have solid/liquid waste management facilities in order to become clean with litter and plastic free.
26,000 hectare area to be treated with completion of 1,800 works under Integrated Watershed Management Programme (IWMP) during 2024-25.

For Rural Sector, an allocation of about Rs 3731.54 crore has been made under capital expenditure for the year 2024-25.

Tourismand Culture

Border Tourism in areas of Kashmir valley like Gurez, Keran, LolabandTeethwaletc. has received domestic tourist arrival of 1.5 lakhs during 2023.
New initiative for development of infrastructure and basic amenities in 12 off-beat tourist destinations, 6 each in Jammu and Kashmir divisions, with objective of enhancing tourism appeal and expanding local business and job opportunities.
Development of Keran as border tourist village.
Development of Tosamaidan and Sitharan circuits.
Development of Duggar Dani village at Samba with the traditional set up in the form of “mock village”.
Construction and installation of 130 meter (425 feet) high National Flag mast at Patnitop.
Completion of revival and restoration of 75 identified heritage sites/cultural sites.
Establishment and operationalization of 8 cultural centers.
Development and modernization of Shri Pratap Singh (SPS) Museum Srinagar.
Promotion and propagation of sufism in Jammu and Kashmir through structured programmes including operationalization of state-of-the-art Suffiana School at Srinagar.

Digitization of all libraries.

For Tourism and Culture sector, an allocation of about Rs 519.70 crore has been made under capital expenditure for the year 2024-25 which is Rs 205.45 crore more than revised allocation of 2023-24.

Forestry and Environment

Planting of 190 lakh native trees and 100 lakh low cost greening interventions aimed to restore ecosystems, prevent soil erosion and enhance biodiversity.
All 78 urban Local bodies of Jammu and Kashmir to have at least one Nagar Van, Nagar Vatika or an Eco Park.
10 lakh saplings of local, medicinaland economic importance species to be distributed among the farmers for planting to augment trees outside forests and improve livelihood.

Cooperative Sector

Establishment of Micro Food Processing Units for creating employment opportunities, especially in rural areas.
Construction / Establishment of Mini Super Bazars at District / Village/ Block Level.
Construction of 6 Grain storage units in 6 districts which are deficit in grain storage facility under the Scheme “World’s Largest Grain Storage”.
For Cooperative sector, an allocation of about Rs 25 crore has been made under capital expenditure for the year 2024-25 which is Rs 5 crore more than revised allocation of 2023-24.

Health and Wellness

Two Cancer Institute’s at Jammu and Srinagar to be made fully operational during 2024-25.
Enhancing DNB Seats to 400 thereby improving the availability of Specialists.
Health records to be saturated by creation of ABHA For Health and Medical Education Sector, an allocation of about Rs 1674.51 crore has been made under capital expenditure for the year 2024-25.

Education Sector

2,176 new Kindergartens to be established to attain saturation in all the 13,804 schools in phased manner.
Separate annual library grant ranging from `5,000 to `20,000 covering schools from Primary to Senior Secondary for purchase of books under SamagraShikshaAbhiyan.
Only fortified rice to be served to about 8.95 lakh students at elementary level (I to VIII) under Mid-Day Meal Scheme for improving nutritional health of students.

Social / Tribal Welfare

All persons with disability to be covered under Niramaya Health Insurance Scheme.
Transit accommodations to be established for transhuman tribal population which includes accommodation for 150-200 families, community kitchens, medical dispensaries, veterinary dispensaries, community toilets and livestock yards.
186 villages, having 500 scheduled tribe population, to be covered under “Pradhan MantriAdiAdarsh Gram Yojana (PMAAGY)” scheme.

Sports and Youth Initiatives

75 lakh youth engagement in various sports events to be held at the Panchayat, Block, District, UT and National level during 2024-25.
20 national sports events to be organized in 2024-25.

Power Sector:

The Government of India is supporting to enhance Power Generation from 3500 MW to about 6500 MW till 2026-27. So far, Government of India has provided equity share of Rs. 2430.60 crore to the UT for development of 04 new Hydro Electric Projects.
Gurez valley in northern Kashmir which remained without electricity since Independence has now been connected to the electricity grid during last year.

Housing and Urban Development

05 Sewerage Treatment Plants (STPs) with sewerage treatment of capacity of 65.33 MLD are under implementation.
Under AMRUT 2.0, UT Water Action Plan for 153 projects of 78 ULBS has been completed. This includes 99 projects for water supply connections aiming to provide 2.25 lakh new tap household connections. Also 50 projects for rejuvenation of water bodies to be undertaken.
For Road and Bridge Sector, an allocation of about Rs 4061.74 crore has been made under capital expenditure for the year 2024-25 which is Rs 118.87 crore more than revised allocation of 2023-24.

Industrial Development

The Central Government has rolled out the New Central Sector Scheme (NCSS) since 2021 with an outlay of Rs. 28,400 crore for industrial development in Jammu and Kashmir. Total 889 units with proposed investment of Rs 18,185 crore and employment of 46,857 have already started work on the ground. Till date investment worth Rs.6600 Cr has been realised on ground.