Financial package for J&K caught in Parliamentary logjam

Financial package for J&K caught in Parliamentary logjam

ArmyThe proposed package for Jammu and Kashmr amounting to almost Rs 70,000 crore has been caught n the parliamentary logjam as the Modi government has been left grappeling with the situation caused by Congress’s refusal to let the house function. Jammu and Kashmr was to get this package for development work over the next five years particularly for flood affected regions in the state.
Though the J&K government is expecting the package to roll but officials admt that t would take some tme before thngs are spelled out in clear terms. The centre was expected to announce the financial package for the state from the floor of the Parliament but current tussle between BJP and Congress has lead to a deadlock for the state government.

Whle the government was epectng a major bonus from the centre, it was surprised when finance minister Arun Jaitley earmarked only Rs 550 crore for flood relief. This also caused anger among the ruling coalition which had projected relief of Rs 44,000 crore, and was shocked by the provision of only 2400 crore by the centre.

After the budget session was over, the state government expected that a major announcement would be made by PM on Eid but that also did not came, which allow ed the opposition NC to hammer the government. The state is now expecting that a major package would be announced ahead of the first anniversary of the 2014 floods which happened in September. On its part the state government has initiated structural reforms to bring the finances of the state under control.

Jammu and Kashmir finances have been in doldrums because of the fiscal profligacy shown by successive state government which have relied less on generating own revenue but more on financial largesse from the central government. The centre however is now asking the state to initiate reforms and also become more responsible in handling finances.

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