Jammu & Kashmir FY24 budget focusses on doubling GDP within 5 years

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The budget for the Union territory of Jammu and Kashmir for the financial year 2023-24 proposes to double the gross domestic product within five years with focus on good governance and strengthening grass-root democracy.

“The budget 2023-24 for Jammu and Kashmir shall again cross Rs 1 lakh crore mark, an indicator of our commitment to make Jammu and Kashmir a model of development. The total budget estimates for the fiscal is Rs 1,18,500 crore, of which developmental expenditure is of the order of Rs 41,491 crore,” the budget document noted.

The budget was tabled in Indian parliament’s lower house on March 13.

Of the receipts of Rs 1,18,500 crore estimated for 2023-24, Rs 1,06,061 crore are revenue receipts, Rs 12,439 crore are capital receipts and Rs 30,000 crore are ways and means advances.

The total expenditure is estimated to be Rs 1,18,500 crore, of which capital expenditure would be Rs 41,491 crore and revenue expenditure Rs 77,009 crore.

The Jammu and Kashmir Appropriation Bill is proposed to be presented to authorize payment and appropriation of Rs 1,48,500 crore from and out of the Consolidated Fund of the union territory of Jammu and Kashmir for the fiscal year.

The Union territory’s tax-to-GDP ratio is projected at 8.82 percent for 2023-24, higher than the previous year’s 7.77 percent. Debt-to-GDP for 2023-24 is 49 percent.

GDP growth for the year 2023-24 has been projected at 10 percent over the previous year.

“Despite odds, Jammu and Kashmir has sustained the pace of development and expeditiously managed the expenditure both under revenue and development side. The overall GSDP growth during financial year 2021-22 has been 14.64 percent (1st Revised) as compared to financial year 2020-21,” according to ther budget documents.

During 2022-23, until January 2023, an investment of Rs 1547.87 crore has been received, the highest ever compared to any previous financial years, the budget said.

Budget proposals

The budget proposes to rollout the Jammu and Kashmir Holistic Agriculture Development Plan under which 29 projects with an outlay of Rs 5,012 crore will be taken up over a period of next five years. For the agriculture and horticulture sectors, an allocation of about Rs. 2,526.74 crore has been made under capital expenditure for the year 2023-24.

For tourism and culture sectors, an allocation of about Rs 457.39 crore has been made under capital expenditure for the year 2023-24.

Health and medical education sector will get an allocation of about Rs. 2,097.53 crore has been made under capital expenditure, while for the rural sector, an allocation of about Rs 4,169.26 crore has been made under capital expenditure.

For the power sector, an allocation of about Rs. 1,964.90 crore has been made under capital expenditure for the year 2023-24 and an allocation of Rs 7,161 crore under capex for the Jal Shakti department.

Housing and urban development sector will get Rs 2,928.04 crore under capex and school and higher education sector will get Rs 1,521.87 crore under capital expenditure for the year 2023-24.

The road and bridge sector will receive allocation of about Rs 4,062.87 crore under capex for the year 2023-24, while industries and commerce sector will receive Rs 741.79 crore under capex.

Tribal Affairs will get an allocation of Rs 446.76 crore under capital expenditure. Relief and rehabilitation of Kashmiri migrants will get an allocation of about Rs. 1,102 crore has been made for the year under revenue and capital expenditure.

Security-related activities will receive an allocation of Rs 1,197 crore for the year 2023-24.