Rs 1,844 cr under SDRF, CRF yet to be apportioned btw J&K, Ladakh

SRINAGAR: A gross balance of Rs 1,271.48 Crore under the State Disaster Response Fund (SDRF) and Rs 573.33 crore under the Central Road Fund (CRF) as on 30 October 2019 is yet to be apportioned between Jammu and Kashmir Union Territory and Ladakh Union Territory.
The details have been revealed by the Comptroller and Auditor General (CAG) of India in its fresh report Finance of Jammu and Kashmir up to the ending March 2021.
Jammu and Kashmir State was bifurcated into the two Union Territories on August 5, 2019, by the Government of India. Whereas on the 30th of October 2019, the Jammu and Kashmir Reorganisation Act, 2019 came into the existence.
Reserve Funds are created for specific and defined purposes under the Public Accounts of the Government. These funds get contributions or grants from the Consolidated Fund of the UT of Jammu and Kashmir. The total accumulated balance at the end of 31 March 2021 in these funds was Rs 771.13 crore. Out of which Rs 780.89 crore (Credit) was under interest-bearing Reserve Fund and Rs 9.76 crore (Debit) under Non-Interest bearing Reserve Fund, the CAG in its report said.
The Debit balance of Rs 9.76 crore as on 31 March 2021 under the Non-Interest bearing Reserve Fund is due to the total accumulated net balance (Non-Interest bearing) in Reserve Funds as at the end of 30 October 2019, yet to be apportioned between successor Union Territories.
The cumulative aggregate balance in these funds at the end of 30 October 2019 was Rs 2,806 crore, which is yet to be bifurcated between two UTs, the CAG report said.
The report said that the Government of erstwhile Jammu & Kashmir State constituted (January 2012) a Consolidated Sinking Fund for amortisation of loans in 2012. This has been continued by the successor Union Territory of Jammu and Kashmir.
As per guidelines of the Fund, Government may contribute 0.50 percent of the outstanding liabilities {public debt + public account (excluding Suspense and Remittances)} as at the end of previous year. During the year 2020-21, an amount of Rs 55.63 crore was contributed to this Fund by the Union Territory Government as against the required contribution of Rs 27.50 crore i.e. 0.50 percent of total outstanding liabilities of Rs 5,500.35 crore during the year 2020-21, the report reads.
It said, “The Contribution of Rs 355.87 crore since the inception of this fund by erstwhile State of Jammu and Kashmir to the Fund up to ending 30 October 2019 is yet to be apportioned between the successor Union Territory of Jammu & Kashmir and Union Territory of Ladakh”.
In terms of guidelines on the constitution and administration of the State Disaster Response Fund (under Major Head ‘8121- General & Other Reserve Funds’ which is under the interest-bearing section), the Central and State Governments are required to contribute to the fund in the proportion of 90:10, the CAG report reads.
On the Re-organisation of the State of Jammu and Kashmir into two new Union Territories, the Union Territory of Jammu and Kashmir continued with the Fund. During the year 2020-21, an amount of Rs 279.00 crore on account of ‘Grants towards contribution to Union Territory Disaster Response Fund’ was released by the Ministry of Home Affairs, Government of India, the report reads.
The Government of Union Territory of Jammu and Kashmir transferred Rs 357.57 crore (Central share Rs 279.00 crore, Union Territory share Rs 31.00 crore, interest Rs 43.89 crore and previous unspent balance of Rs 3.68 crore credited) to the Fund under Major Head 8121-122 SDRF, the CAG report reads.
There was minus balance of Rs 176.90 crore under the Fund as on 1 April 2020 and during the year 2020-21, the Government of Union territory of Jammu and Kashmir transferred Rs 357.57 crore (Central Share Rs 279 crore, Union Territory share Rs 31.00 crore, interest Rs 43.89 crore and previous unspent balance of Rs 3.68 crore) and credited to the Fund. Expenditure of Rs 164.35 crore was incurred during the year 2020-21 on natural calamities, leaving a balance of Rs 16.32 crore as on 31 March 2021, it reads.
“The balance under the Fund has not been invested by the Government of UT of Jammu and Kashmir. There was a Gross balance of Rs 1,271.48 crore under State Disaster Response Fund (SDRF) as on 30 October 2019 which is yet to be apportioned between the two new successor Union Territories viz Union Territory of Jammu and Kashmir and Union Territory of Ladakh. An amount of Rs 10.86 crore stood invested from the Fund leaving a net un-apportioned balance of Rs 1,260.62 crore”, the CAG in its report said.
Further, as per the CAG report, there was also a balance of Rs 573.33 crore as on 30 October 2019 (pre-reorganization) under the Fund, which is yet to be apportioned between the Union Territories viz. Union Territory of Jammu and Kashmir and Union Territory of Ladakh, the report read.
Updated On 8/10/2022 10:18:30 AM