Union Finance Minister Nirmala Sitharaman on Tuesday allocated Rs 35,581.44 crore in the budget 2022-23 to the Union Territory of Jammu and Kashmir as part of the central government's assistance, grants, and loans.
The finance minister allocated Rs 5,958 to the Union Territory (UT) of Ladakh from her budget proposals.
The erstwhile state of Jammu and Kashmir was bifurcated on August 5, 2019, into two UTs – Jammu and Kashmir and Ladakh — following the abrogation of Article 370. Both the UTs are currently under central rule.
While Jammu and Kashmir has been given Rs 35,581.44 crore for 2022-23, compared to Rs 34,704.46 crore in 2021-22, Ladakh has been given Rs 5,958, the same as in the current fiscal.
Out of the total allocation of Rs 35,581 crores, Rs 33,923 crore would be utilized to meet the revenue deficit gap/resource gap of UT.
Rs 279 crore has been allocated as UT disaster response fund, Rs 273 crore as rehabilitation for Dal- Nageen lake, Rs 130 crore as grants towards equity contribution for 624 Megawatt Kiru hydro-electric projects, Rs 476 crore as grants towards equity for Ratle 800 Megawatt hydro-electric project and Rs 500 crore as support for capital expenditure of UT.
Mixed reaction on budget
Union Budget has evoked a mixed response from the traders and industrialists in Jammu and Kashmir.
Chamber of Commerce and Industries (CCI) has criticized the budget and termed it anti-traders. CCI chief Arun Gupta said that the budget has nothing to highlight for trade and industry in the UT. Describing the budget as insignificant for the business community, Gupta said that the finance minister has nothing in the offing for the small traders and industrialists.
However, the Associated Chamber of Commerce and Industry of India (ASSOCHAM) has welcomed the first digital budget of the country.
AS Mittal, Chairman, ASSOCHAM Northern Council said, "The budget is focused on making India Aatmanirbhar and five trillion economy in coming years. Finance Minister has covered all the sectors of the economy. We can call it a people-friendly budget."
"Budget is a landmark budget with a far-reaching positive impact towards the revival of the economy and to usher in the dawn of a new era," he added.
Manik Batra, Chairman, ASSOCHAM J&K chapter said, "Logistics is an essential part of the economy in any country, enabling the movement of resources along supply chains to consumption centers. The announcement of new national highways and logistic parks at four locations will make the supply chain more robust and reduce the cost of transportation."
