Highlights regional disparity in allotment of funds, employees
Nishikant Khajuria
JAMMU, Feb 19: Senior BJP legislator and former Finance Minister Pawan Gupta today launched a sharp critique of the Finance Department and the Power Development sector during the discussion on Demands for Grants in the Assembly, warning that rising debt, mounting interest burden and excessive executive discretion were eroding legislative control over public finances.
Follow the Daily Excelsior channel on WhatsApp
Sharing figures, he also highlighted regional disparity in respect of budget allocation as well as number of employees in various sectors and alleged that despite more revenue realization from consumers here, more units of electricity was provided to the valley.
Pointing to inconsistency between the Budget Estimates and Revised Estimates, Pawan Gupta argues that if the economy is expanding, revenues must grow at a faster pace and if they are not, either projections are inflated or tax administration is weak. “You announce big, but surrender later,” he remarked, alleging a pattern of inflated projections followed by downward revisions.
Raising concerns over cash management and delays in fund release, Gupta said that several departments have sanctioned works, floated tenders and allotted projects, yet payments remain pending. He sought details on the number of bills pending in treasuries, the average delay in payment, and the liabilities being carried forward.
The former Finance Minister expressed serious concern over the debt-to-GDP ratio, calculating it at approximately 52 per cent (Rs 1, 37,000 crore debt against Rs 2, 88,000 crore GSDP), far above the recommended 25-30 per cent threshold. He further pointed out that the interest-to-GDP ratio stood at 4.26 per cent (Rs 12,283 crore interest against Rs 2, 88,000 crore GSDP), exceeding the 1-2 per cent benchmark suggested by the 15th Finance Commission and the FRBM framework.
Similarly, he pegged the interest-to-revenue receipts ratio at over 15 per cent, cautioning that it should ideally not cross 10 per cent. “When interest payments rise faster than capital expenditure, it signals fiscal fatigue,” he warned. He also flagged a 110 per cent increase in expenditure under the ‘Others’ head in revenue expenditure, stating that such growth should not exceed 10 per cent.
One of Pawan Gupta’s strongest objections was against the placement of over 80 per cent of untied funds under the disposal of the Commissioner Secretary without scheme-wise or district-wise allocation. He alleged that lump-sum provision in a Demand for Grant without clear allocation criteria, no scheme- wise break up, no district wise allocation and power to re-appropriate internally give excessive discretionary power to the executive.
“If 80 per cent of voted grant is left untied at the discretion of the executive, this House is effectively voting on a blank cheque,” he said and termed it an “institutional erosion of legislative control,” adding that without objective allocation formulas, the Opposition cannot track scheme-wise spending and the possibility of regional or political bias increases.
Turning to the Power Development Department (PDD), Pawan Gupta questioned why it continues to be part of the Budget when it has been unbundled into four corporations, which should be addressed through grant-in-aid rather than direct budgetary provisioning.
Pointing out that that despite massive central assistance over the past 13 years, the power sector remains the biggest drain on the state budget, Gupta projected a revenue deficit of nearly Rs 4,000 crore this year between tariff realization and power purchase expenditure.
Sharing figures of more revenue realization from Jammu and more revenue losses in Kashmir, the BJP MLA said that in Jammu province, 7,084 million units were supplied with a revenue target of Rs 3,000 crore, of which Rs 2,154 crore has been realised so far, with losses of 30-32 per cent whereas in Kashmir province, against 8,413 million units and a Rs 2,915 crore target, Rs 1,973 crore has been realised, with losses at 45-46 per cent.
Giving the example of his home district, Pawan Gupta said Udhampur district recorded exceptionally low losses of 5-6 per cent, achieving Rs 162 crore against a Rs 180 crore target and likely to exceed Rs 200 crore by year-end. In contrast, he added, Bandipora has so far recorded 81 percent losses, Budgam 61 percent, Kupwara 56 percent and so on.
Gupta further alleged that due to delayed payments to corporations, a rebate of Rs 115 crore could not be availed and instead 15 per cent interest amounting to Rs 131 crore had to be paid, resulting in a cumulative loss of Rs 246 crore to the exchequer.
Highlighting disparity in staffing and budget allocations in Power sector, Pawan Gupta noted that KPDCL has 6,342 employees with a budget of Rs 585 crore, while JPDCL has 4,689 employees with Rs 418 crore budget. He also cited disparities in institutions such as SKUAST Kashmir (1,781 employees; Rs 334 crore budget) and SKUAST Jammu (727 employees; Rs 189 crore budget)
Similarly, he referred to disparity in Urban Local Bodies, including Srinagar Municipal Corporation (2,891 employees with Rs 228.51 crore budget), Jammu Municipal Corporation (2,593 employees with 179.16 crore budget), and the Directorate of Urban Local Bodies Kashmir (2,031 employees with Rs 166.13 crore budget, Directorate of Urban Local Bodies Jammu (1024 employees and Rs 93.2 crore budget) .
Gupta called for structural reforms, transparency in fund allocation, strict fiscal discipline and accountability in the power sector, asserting that unless corrective steps are taken, “the burden of debt and inefficiency will ultimately fall on the common citizen.”
While participating in the discussion on Demand of Grants, G A Mir of Congress demanded enhancement in the relief for the KP migrants and better transit accommodation for the PM Special Package employees till their permanent rehabilitation in Kashmir valley. He said that relief to political migrants should continue till final disposal of their cases.
He also demanded completion of mini-secretariats buildings, creation of posts of Tehsildar and Patwaris in the newly established tehsils, transparency in PM Aawas Yojana, establishment of an electric sub-division at Dooru, ex-gratia relief to next of kin of the PDD casual labours who die while performing official duty and infrastructure development at lesser known tourist spots.
Kaisar Jamshed Lone of NC stressed the need for planning with proper mechanism to develop water resources for meeting the requirement. He also demanded proper solid waste management, affordable housing projects, regularization of colonies, early completion of under-construction hydro projects, establishment of a transmission station and development of tourist spots in his constituency.
Expressing concern over conversion of residential areas into commercial ones, the MLA said that encroachment of nallahs was leading to disasters and the recent tragedy at Shri Mata Vaishno Devi was also caused due to blockade of a Nallah by a hotel.
NC MLA Javed Hassan Beig, urged the Lt Governor of J&K and Union Home Minister to take a lenient view on the detenues of Kashmir and MLA Doda Mehraj Malik, who are lodged in jails. Suggesting constitution of a Development Board for Sikhs and representation to Sikh community in the Government, he also appealed CM for a House Committee to meet KP migrants staying across the country for listening to their grievances.
NC MLA from Poonch, Aijaz Jaan alleged harassment of J&K people staying in hotels in Delhi and suggested that a suitable accommodation should be hired for establishment of a new JK Guest House in the national capital. He also demanded chopper service to Mandi, allotment of 5-marla plot to border inhabitants, easy loan facility to youth and formation of a monitoring cell for the same, renewal of lease of the housing property, early completion of the new Assembly Hall and fast tracking the recruitment process.
MLA Banihal, Sajad Shaheen demanded the hydro power projects in central sector should be returned to J&K. He also demanded Electric Sub-Division at Gool and Sangaldaan, receiving station at Banihal, bring new spots to tourist map, tourism development authority for Gool, additional Session Court at Banihal for disposal of pending cases, creation of posts of tehsildar and Naib Tehsildar at the newly established tehsils and increase in salary as well as CDF of the legislators.
The post Pawan Gupta flags fiscal stress, questions ‘Blank Cheque’ budgeting appeared first on Daily Excelsior.