The overall performance of the government in Jammu and Kashmir presents a grim picture, especially on development front. The economic health of the State is in disarray with growing liabilities and more dependence on Central funds for running the government. The spending on social sector, health and education has shown a decline. From 2001 to 2013 J and K has seen a decline from already a low of 29 per cent to 26 per cent on social sector spending. With sixth lowest literacy rate at 69 per cent and a dropout rate of 44 per cent, the education sector gets only 11.6 per cent to 10.5 per cent of the spending. The neglect of education is really disturbing. The story of health sector is still critical. A rising debt quotient from 48 per cent to 52 per cent and just contributing 20 per cent from taxes as its revenue also paints a grim picture. Instead of showing an upward trend to contain the increasing debt and other liabilities, the 13th Finance Commission paints a grim picture of the State’s financial condition. The State at present is only behind north eastern state of Mizoram. In the list of 28 states, Jammu and Kashmir is the only state which has failed to achieve targets to contain increasing debt fixed by 13th Finance Commission, while the rest of the states successfully met the targets. The 13th Finance Commission had laid down target to Jammu and Kashmir as 51.6 per cent, but the liabilities and loan position deteriorating further, registered at 53.6 per cent of Gross Domestic Product (GDP). The State gets 58 per cent of its annual revenue as grants from the Centre whereas other states get only 19 per cent. All through the State was ruled by National Conference, PDP and Congress but it has never come out of red. Irony is that, they all keep blaming the Centre for all maladies. The dismal picture is a reflection of poor policies followed by the subsequent governments. The vicious circle of economic ailments has been eclipsing the State for the past six decades and what is to be seen is what changes the ensuing elections will bring to Jammu and Kashmir.