J&K govt seeks special package in Union Budget
Union finance minister Nirmala Sitharaman has already held a pre-budget consultation with J&K chief minister Omar Abdullah earlier this month
Jammu & Kashmir has urged the central government to provide a special package for the Union territory in the upcoming budget, including Goods and Services Tax refunds for industrial units, interest subvention for capital expenditure and grants for infrastructure development to boost its economy, people familiar with the development said.
J&K has been one of the focus areas in every budget over the last 10 years and the same is expected in the forthcoming Union budget scheduled to be presented on February 1, two officials said, requesting anonymity. Union finance minister Nirmala Sitharaman has already held a pre-budget consultation with J&K chief minister Omar Abdullah earlier this month, they said.
“J&K has always been central to the Modi government’s ‘Viksit Bharat’ strategy. The same was reiterated by Prime Minister Narendra Modi on January 13 when he said that the dream of a developed India will be realised when its crown, Kashmir, is adorned with the jewels of progress,” one of them said. The PM inaugurated the ₹2,700 crore Sonamarg tunnel project on January 13 that would connect Srinagar with Sonamarg and boost the local economy, he said, adding that efforts of the last 10 years resulted in over 20 million tourists visiting J&K last calendar year.
The Union territory, which elected a new government in October last year, has petitioned the central government for more central funds to accelerate projects linked to agriculture, tourism and industry that will in turn generate jobs and more revenue, the second official said. The J&K budget for 2024-25 includes ₹42,278 crore as central assistance and ₹12,502 crore as centrally funded scheme (CSS) and Pradhan Mantri Development Package (PMDP) to the Union Territory of Jammu and Kashmir.
According to an official aware of the demand list of J&K, the Union territory wants the Centre to consider granting more funds for incentives under the industrial scheme, pointing out that money is needed for 390 GST Linked Incentive (GSTLI) claims. GSTLI, a component of the New Central Sector Scheme (NCSS) notified in February 2021 for industrial development of the Union territory of J&K, has an outlay of ₹28,400 crore for the period from 2021-22 to 2036-37. The NCSS’s ₹28,400 crore fund provides incentives such as GST refunds on investment, interest subvention on loans, and a 30% capital incentive.
The other demands include funds for 140 road and bridge projects worth ₹950 crore, which are being submitted to NABARD for sanction, the official said. “Agriculture and horticulture would remain a top priority followed by industries, infrastructure and job creation through entrepreneurship schemes, and development of tourism infrastructure,” he added.
The government has also lined up setting up 50 primary agricultural credit societies (PACS), 550 cooperative societies, and 40 food processing units and the infrastructure projects include 700 road and bridge projects covering 3,500km and estimated to be worth about ₹8,500 crore, he said.
In November, Abdullah in a meeting with Sitharaman had sought funds through the Special Assistance to States for Capital Investment Scheme, which provides a 50-year interest free loan for capital expenditure. The CM also sought additional central assistance of ₹6,000 crore to bridge the resource gap in the UT budget for FY2024-25. Abdullah, who was sworn in as CM in October last year, had also sought multilateral funding for development of new tourist destinations and for improving infrastructure in the existing tourism spots and locations.
Recommended Topics