Looks like Dr. Drabu was not the most efficient Finance Minister

Looks like Dr. Drabu was not the most efficient Finance Minister

Jammu, March 11: A structural liability of Rs 8,000 crore  has been created by PDP-BJP government during the last one financial year.

As per reports in the Tribune, the liability has made it difficult for the state government to form the budget for the year 2016-17.

The last year’s budget was presented by then Finance Minister Haseeb Drabu. In the budget, an amount of Rs 4,336 crore was marked under unfunded or additional resources required by using the additional line ‘to be financed through prepositioning of 14th Finance Commission grants’. However, the financial experts called it technically impossible and it was also not done during the tenure of the PDP-BJP government.

The sources said that not only a deficit of Rs 4,336 crore was created in the annual budget estimates but later when the budget was revised, the department added another liability of Rs 3,671 crore in the deficit. Hence, the total estimated disbursement was increased from Rs 53,590 crore to Rs 57,646 crore and added Rs 4721 crore in the estimated receipts in September 2015.

There is a total liability of Rs 8,007 crore on state government and it has put an extra burden since the state department will have to carry forward this liability to the next financial year.

According to a financial expert, the government cannot put the state into liability by using the term ‘to be financed through prepositioning of 14th Finance Commission grants’. It is against financial propriety.

The aim of state government was to exploit and misuse proximity with the Centre by using the term prepositioning, which the centre never allowed, said the expert.

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