Srinagar: Jammu and Kashmir’s GSDP is expected to grow at 7.5 percent during the current fiscal, Lt Governor Manoj Sinha said on Monday.
“The GSDP (Gross State Domestic Product) for 2024-25 has been projected at Rs 2,63,399 crore (Rs 2.63 lakh crore), showing a growth of 7.5 percent over the GSDP of 2023-24,” Sinha told reporters at a press conference here.
Highlighting the budget’s salient features, he said the size of provisions this fiscal was Rs 30,889 crore higher than the previous year.
“The size of the budget for 2024-25 is Rs 1,18,390 crore (Rs 1.18 lakh crore). It is Rs 30,889 crore higher than the expenditure of 2023-24,” he added.
Giving details, the LG said the revenue receipt estimate for 2024-25 was Rs 98,719 crore and capital receipt estimate Rs 19,671 crore.
Revenue expenditure for 2024-25 is pegged at Rs 81,486 crore.
The administrative sector has got Rs 9,881.68 crore, social sector Rs 24,870.50 crore, infrastructure sector Rs 15,719.40 crore and the economic sector Rs 5,555.48 crore, Sinha said.
“Capital expenditure (or developmental expenditure) for 2024-25 is Rs 36,904 crore,” the LG added.
While the capital expenditure contribution towards GDP is 14.01 percent, the tax-GDP ratio is projected at 7.92 percent, which is higher than last year’s 5.68 percent, he told reporters.
Sinha said Jammu and Kashmir had left behind the era of fiscal mismanagement due to externally-sponsored terrorism and added that the high levels of committed expenditure and ATC (aggregate technical and commercial) losses in the power sector had accentuated the challenge of managing the Union Territory’s finances.
“Over the past year, the Union Territory government stressed on revenue augmentation, improving project execution, reducing ATC losses, and improving quality of governance,” he added.
The Union Territory government improved GST return compliance, initiated an e-Stamping system, expanded dealer registration and conducted transparent excise auctions as part of efforts to augment revenue, he further said.
“Tax revenue increased from Rs 12,753 crore in 2022-23 to Rs 13,900 crore in 2023-24. GST collection rose 12 percent and excise collection increased 39 percent in the 2023-24 fiscal against 2022-23,” the LG added.
The Union Territory government’s efforts to undertake metering and improve billing and collection efficiency resulted in non-tax revenue increasing from Rs 5,148 crore in 2022-23 to Rs 6,500 crore in 2023-24, Sinha said.
The administration has effectively leveraged centrally-sponsored schemes and intensified efforts to harness central funds through faster execution of works, he said.
“This led to a sharp increase in receipts of funds under centrally-sponsored schemes from Rs 6,400 crore in 2022-23 to Rs 10,300 crore in 2023-24,” according to the LG.
During the past few years, the Union Territory government improved budgetary transparency. It also repaid power sector dues of about Rs 28,000 crore, which was pending and rising for several years, he said.
For the first time in 77 years, the Union Territory contributed to the contingency funds created by the Reserve Bank of India such as the Consolidated Sinking Fund and the Guarantee Redemption Fund, he added.
Sinha said the administration had stopped borrowings and significantly paid off previous dues.
“These initiatives, coupled with the judicious welfare measures and infrastructure development, helped the state GDP double from Rs 1.17 lakh crore in 2015-16 to Rs 2.45 lakh crore in 2023-24. The state GDP is expected to touch Rs 2.63 lakh crore in 2024-25,” he said.
The Centre has acknowledged these financial management improvements as well, he claimed.
“Accordingly, in the financial year 2024-25, the Union government has approved a special assistance package of Rs 17,000 crore for Jammu and Kashmir,” Sinha said. (With inputs from PTI)
