While introducing the Budget for the Union Territory of Jammu and Kashmir, Union Finance Minister, Nirmala Sitharaman promised that the ambitious Shahpur Kandi Dam project would be completed.
"Shahpur Kandi Dam project is likely to be commissioned which will benefit Jammu and Kashmir with 1,150 cusecs of irrigation water facilities to 32,186 hectares of land in Kathua and Samba", the Union
Finance Minister Sitharaman mentioned in her Budget for Jammu and Kashmir.
"Balance work of Tawi Barrage to be completed. 197 minor irrigation schemes to be completed during 2024-25, which envisages the creation of an irrigation potential of 38,723 hectares", she mentioned.
Importance of this project
The project is being constructed on the river Ravi, 11 kilometres downstream of the Ranjit Sagar Dam and eight kilometers upstream of Madhopur in Punjab's Pathankot district.
Commissioning of this project will help the farmers of the Kandi belts of the Kathua and Samba districts. This canal will be turned into a lifeline for farmers of this belt.
J&K and Punjab had signed a bilateral agreement on January 20, 1979, on sharing water of the river Ravi. As per the bilateral agreement, J&K will get 1,150 cusecs of water by constructing a canal from Satwain to Basantpur. The Punjab government was to construct the Shahpur-Kandi barrage, which was scrapped in 2004.
In June 2015, the then Chief Minister, the late Mufti Mohammad Sayeed had sought the intervention of the Union Government to solve the issue of completion of the Shahpur Kandi canal project with Punjab.
After decades of animosity, J&K and Punjab governments had signed a fresh pact on the Shahpur Kandi project on March 3, 2017. As per this new pact, J&K is going to get 20 percent electricity and 1150 cusecs water from the project.
J&K is confronting a food-grain deficit and the project is going to enhance agricultural production in the Kandi belt. J&K, which is facing a huge power deficit, may get relief after the implementation of the project.
Finance Dept of J&K Govt drafts regular budget for the current year
The Finance Department of the UT Government had drafted the Regular Budget for the current year. For this, the Department had assessed the revenue receipts of the UT Government from GST, motor spirit tax, excise, and stamp duty.
Further, the non-tax revenue from electricity and water supply, mining royalty, timber sales, annual rent from industrial lands, etc were also examined. The own revenue of the UT Government has been estimated at Rs. 21,860 crore.
A detailed analysis of the fiscal situation of Jammu and Kashmir was carried out by the Finance Department to address the legacy challenges which include high staff strength, low revenue base, and high debt load. The high fiscal stress caused by the committed nature of the major expenditures has increased the UT's dependence on central grants.
To address these challenges, the UT government has increased tax and non-tax revenues through improved GST return compliance, improved billing and collection efficiency, increased dealer registration, and transparent excise auctions.
All administrative departments also intensified efforts to harness central funds by enhancing execution speed. This led to a sharp increase in receipts of funds under centrally sponsored schemes.
During the last financial year, the UT government also stringently enforced borrowing limits and curtailed the culture of overdraft. With close monitoring of public debt, the UT government was successful in tapering down the off-budget borrowings. The government has restrained revenue expenditure through austerity measures and biometric verification of beneficiaries. The UT Government also pursued the Government of India to increase central financial assistance.
Special Central assistance of Rs 17000 crore for J&K
Accordingly, the Union Budget which was also laid before the Parliament provides for a special central assistance of Rs.17,000 crore for Jammu and Kashmir. The Union Government has agreed to provide for the salary, pension and other costs of Jammu and Kashmir Police for which an allocation of Rs 12,000 crore has been made in the annual budget. In addition, a lump sum special grant of Rs 5,000 crore as additional central assistance is being provided in the current financial year.
As a result of this Rs. 17,000 crore of special package, the fiscal deficit to GDP ratio of Jammu and Kashmir will reduce to 3 percent in the financial year 2024-25.
This special package will be part of the overall central assistance which is estimated at Rs. 67,133 crore during 2024-25. This unprecedented assistance would lead to complete improvement in fiscal position enabling the Government of Jammu & Kashmir to work towards fulfilling the developmental needs and aspirations of the people while maintaining stable fiscal health.
Major Outlays under Budget 2024-25
- Rs. 9,400 crore for subsidy and budgetary support for the purchase of power from the National grid and the Power purchase agreements with power generation companies.
- Rs. 3,983 crore for the Construction of roads & bridges under PMGSY, CRIF, NABARD loan schemes & Bridge schemes.
- Rs. 1,875 crore for rejuvenating school education infrastructure and services through funding of Samagra Shiksha Abhiyan (SSA), career counseling services, and setting up of modern schools for quality education with PM SHRI funding
- Rs. 1,808 crore for strengthening decentralized governance by providing for local area development works of PRIs, ULBs, BDCs, and DDCs.
- Rs. 1,714 crore was provisioned for tap-water connectivity for rural areas under Jal Jeevan Mission.
- Rs. 1,484 crore for completion of Smart City projects in Srinagar and Jammu cities, construction of infrastructure projects under Jhelum Tawi Flood Recovery Project (JTFRP), construction of sewerage treatment plants in urban areas, and development of new townships for housing.
- Rs. 1,430 crore for comprehensive social security coverage under assistance schemes for the Old Age, Widow, and Disabled, and for the women empowerment interventions of Ladli Beti and Marriage Assistance schemes.
- Rs. 1,317 crore for strengthening infrastructure and services in the health sector under the National Health Mission mechanism.
- Rs. 1,104 crore for construction of own houses of houseless poor families in rural areas with PM Awas Yojana- Grameen support
- Rs. 1,068 crore for Provision for salaries, food grains, cash assistance for Kashmiri migrants, and construction of transit accommodation for Kashmiri migrant employees.
- Rs. 1,021 crore for transforming agriculture and allied sectors of the UT through the Holistic Agriculture Development Programme (HADP), with a five-year outlay of Rs 5013 crore, including provisions for IFAD-funded J&K Comprehensive Investment Plan (JKCIP) and development of cold storage and high-density plantation.
- Rs. 923 crore for development and upgradation of Industrial Estates, for providing GST refund incentives and incentives as per the Industrial Policy for industrial units, promotion of trade through JKTPO's events for boosting investment and employment
- Rs. 776 crore for equity support for the hydroelectric projects at Ratle, Kwar, and Kiru, which would provide a stable revenue source and cheaper power.
- Rs. 586 crore for Universal health insurance coverage for all families of Jammu & Kashmir.
- Rs. 500 crore for providing of drugs, machinery, and equipment for health institutions.
- Rs. 475 crore for the upgradation infrastructure of colleges and universities and for the rollout of the National Education Policy.
- Rs. 518 crore for promotion of Tourism, development of new tourism destinations and new circuits, construction of ropeways, conduct of Shri Amarnath Ji Yatra and film festival and promotion policy.
- Rs. 445 crore for improving sanitation and waste disposal facilities, IHHLs, CSCs & achieving ODF+ status in the rural areas.
- Rs. 390 crore for flood management projects of river Jhelum.
- Rs. 405 crore for schemes for self-employment, Start-ups, Seed Capital Fund, implementation of Mission Youth schemes, and support to self-help groups for generation livelihoods.
- Rs. 179 crore for the construction of security-related infrastructure, police housing colonies, bunkers in border areas, and installation of CCTVs in police stations.
- Rs. 150 crore for installation of solar rooftops and solar pumps.
- Rs. 335 crore for the creation of sports infrastructure, heritage preservation, promotion of festivals and theatre, and development of Infrastructure and initiatives for the welfare of Tribals, like tribal hostels, milk villages, nomad shelters, etc.
- Rs. 100 crore for Capital support for the revitalization of Regional Rural Banks (RRBs) and Cooperative Banks.
- Rs. 500 crore for MGNREGA works at Gram Panchayat level.
- Rs. 401 crore for the development of Dal Lake, afforestation, wildlife management, and preservation of protected areas.
Budget Highlights 2024-25
- Competitiveness Improvement of Agriculture and Allied Sectors project in Jammu and Kashmir (JKCIP) at an estimated value of USD 100 million loan from the International Fund for Agricultural Development (IFAD to be implemented.
- Implementation of all 29 projects approved under the Holistic Agriculture Development Programme for Rs 5013 crore over five years.
- 25,000 MTs of Controlled Atmosphere (CA) storage capacity to be added.
- Development of Chrysanthemum theme Park at Cheshmashahi, Srinagar.
- 60,000 backyard poultry units in rural areas.
- Establishment of Micro Food Processing Units for creating employment opportunities, especially in rural areas.
- Construction of 6 Grain storage units in 6 districts which are deficit in grain storage facilities under the Scheme "World's Largest Grain Storage".
- 12,000 additional Self Help Groups (SHGs) to be formed.
- 80,000 houses to be constructed under Pradhan Mantri Awas Yojana Gramin (PMAY-G).
- 26,000 hectare area to be covered under Integrated Watershed Management Programme (IWMP)
- New 12 off-beat tourist destinations, 6 each in Jammu and Kashmir divisions, to be developed. Keran as border tourist village, and Tosamaidan and Sitharan as circuits.
- Revival and restoration of 75 identified heritage sites/cultural sites. Establishment of 8 cultural centers.
- 46 estates to be developed to fulfill the goal of 'Made in Jammu and Kashmir'.
- Under Jammu and Kashmir Rural Employment Generation Programme (J&K REGP), 1,372 units are targeted to be setup during 2024-25.
- New Start-up Policy to be introduced for creating an entrepreneurship ecosystem.
- Two Cancer Institutes at Jammu and Srinagar to be made fully operational during 2024-25.
- Enhancing DNB Seats to 400 and creation of ABHA IDs for 1.35 crore population.
- 100% screening of the 30+ age population for hypertension and diabetes.
- AIIMS, Awantipora to be made functional by March 2025.
- New Nursing College at Handwara is to be set up.
- Attainment of TB-free status in all the remaining districts.
- 2,176 new Kindergartens to be established.
- 18,499 Schools to be provided sports equipments, 2,584 Schools to be provided ICT labs and Smart Classrooms, 43 Robotic Labs and 30 Virtual Reality Labs to be established.
- Establishment of Science Centres in 100 Schools and Vocational Education to be introduced in new 554 Schools.
- 20 national sports events to be organized in 2024-25.
- Placement drives for 1,000 pass-outs to be organized in collaboration with big business and industrial establishments.
- New initiative to create an ecosystem for the promotion of enterprises and self-employment, generate over 5 lakh opportunities for self-employment, and expand investments through credit support.
- New age courses to be introduced in 10 Industrial Training Institutes.
- Outreach and counseling activities to be conducted for aspiring job seekers through Model Career Centers (MCCs).
- All persons with disability are to be covered under the Nirmaya Health Insurance Scheme.
- 11 Shakti Sadan and 04 Sakhi Niwas to be established.
- 7,708 women beneficiaries with establishment of 1,502 units to be targeted under self-employment scheme
- 80 schools to be transformed into smart schools in tribal areas.
- An addition of 3,014 MW installed capacity in phased manner till year 2026-27 with cumulative increase of design energy of 10,714.50 Million units per annum.
- Creation/Augmentation of 38,150 KVA Distribution Transformer, Replacement of 14,000 Ckm of dilapidated LT bare conductor.
- Providing of reliable power supply to the far-flung and remote areas of Gurez.
- 5,000 Kilometres of road length to be black-topped during 2024-25
- 194 new projects sanctioned at an estimated cost of Rs 1023.42 crore under NABARD to be taken for execution during 2024-25.
- Rs 1,000 crore new road and bridge projects to be taken up under NABARD loan assistance under RIDF Tranche during 2024-25.
- Completion of 60 ongoing bridges is targeted during 2024-25.
- 4.26 lakh households to be provided Functional Household Tap Connections (FHTCs) to achieve 100% coverage under tap water connections.
- All projects are to be completed under the Smart city mission.
- Western Foreshore Road along Dal Lake, Srinagar to be constructed.
- Introduction of 200 e-buses under the PM e-Bus Sewa scheme.
- Inter Model Station (IMS) in collaboration with NHAI to be developed at Katra.
- Finalization of Master Plan of all 78 Cities/Towns.
- Development of Sewerage network of Houseboats in Dal-Nigeen Lake, including sewerage network of hamlets inside the lake.
- Implement of Van se Jal, Jal se Jeevan, an innovative water conservation technique through a water shed management approach, promote sustainable agricultural practices and revitalize traditional water bodies, including wetlands.
- Conservation and rejuvenation of Wular Lake to enhance the livelihood of the local people, through ecotourism.
- Completion of construction of 1,500 flats as transit accommodation for Kashmiri Migrant employees during 2024-25.
- Remaining 276 posts out of 6,000 posts under PM-Package for Kashmiri Migrants to be filled in 2024-25.
- e-KYC of all beneficiaries under the Public Distribution System to be completed.
- Roll out of Smart PDS in Jammu and Kashmir.
- 4,000 AC agriculture pumps to be replaced by Solar Pumps in a phased manner under PM-KUSUM
- Around 04 MW rooftop solar power plants to be installed on government buildings. 22,494 Government buildings to be 100% solarised in phased manner.
- 5,000 improved biomass cook-stoves to be provided in the tribal areas to reduce indoor air pollution and fuel use.
- Solarization of all routes and camps of Shri Amarnath Ji Yatra.
- Operationalization of Bio-Technology Park at Kathua.
- Young Scientist Awards/Fellowships among the outstanding researchers.
- IDTR at KotBhalwal, Jammu to be completed and operationalized in 2024-25.
- Institute of Inspection and Certification Centre (ICC) at Samba, Jammu to be completed in 2024-25.
- Implementation of Vehicle Location Tracking Platform (VLTP) for safety of women in public transport vehicles.
- Automated Testing Stations (ATSs) to be established for testing the fitness of motor vehicles in the private sector.
- Construction of Modern Bus Terminal at TRC, Srinagar.
