Expert group set up to study dev deficit in remote areas

'Economic recovery on, revival to follow'

JAMMU: Finance Minister Haseeb Drabu today announced constitution of an expert group to study the reasons for development deficit in the state's remote areas and suggest measures for boosting infrastructure development.
"The government would also make development deficit in remote areas of the state a part of the terms of reference of the proposed State Finance Commission so that a holistic view is taken on the issue and the allocation of resources is made accordingly," Drabu said while replying to the discussion on Budget 2018-19 in the upper house.
He said there are many hard-to-reach areas in the state, extending from Kupwara to Kathua, which have faced neglect over the years and need special attention.
He said the Finance Commission to be constituted by the government will also come up with the recommendations to uplift these areas.
Acknowledging the problems being faced by the people in hard-to-access areas of the state, Drabu announced a special duty allowance of 10 percent of basic pay for the state government employees posted in such regions.
Regarding implementation of 7th Pay Commission recommendations for the employees of PSUs and autonomous bodies, the finance minister said the government has no objection if these organisations implement the recommendations subject to availability of resources.
With regard to the initiatives for the legislators, he announced that medical allowance of the former legislators will be brought at par with the sitting MLAs and MLCs as well as increase in car loan from Rs 5 lakh to Rs 10 lakh. Also, if the member did not avail the car loan facility, he can utilise the amount for availing home loan up to Rs 20 lakh.
Meanwhile, winding up the discussions on the budget proposals in the Legislative
Council, Drabu said that wide-ranging fiscal and welfare measures announced in the Jammu and Kashmir budget 2018-19 are aimed at setting its sluggish economy on the path of revival and recovery.
"It took this government three years to restore the rotten fiscal system, put in place a sustainable public expenditure policy and set the state s economy on the path of steady recovery and revival," Drabu said while winding up the discussions on the budget proposals in the Legislative Council.
"When I talk of fiscal crisis faced by J&K, let me make it clear, I am not talking about the government finances, but the entire economic system involving every section of the society," he said.
The only way to set the state's economy on the recovery path is to enhance autonomous public expenditure, which is the basic theme of this budget, he added.
He said the fundamental intent of making it a stakeholders' budget is to generate income across various levels of society, pump public money into the system and push economic revival through a sustained effort.
He said the focus of the renewed fiscal policy is to restore dignity of the state and make it relevant for the times.
The Finance Minister observed that the state imports more from other states than it exports and hence more money goes out of the system. He said to attract more investment in the state, the government need to handhold and incentivise the industry to attract more investments that will help to increase the flow of money in the system. Dr Drabu informed that in 2012-13, out of one rupee, 36 paisa were going out of the state towards imports while it has been gradually brought down up to 30 paisa this year that has helped to retain more money in the state.