Jammu and Kashmir’s Monthly Magazine RNI : JKENG/2007/26070 ISSN 0974-5653

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The J&K Stories
Jammu, September 1, 2009 / Vol 3 / Issue 9 || Price Rs. 30 || Postal Registration No. JK-350/2009-11 || www.epilogue.in

UNDERSTANDING
J&K ECONOMY
THROUGH

BUDGET
2009-10 INTERVIEW
ABDUL RAHIM RATHER
Finance Minister

Jammu V/s Kashmir

A Year After
AMARNATH LAND ROW
Politics Behind Central University
“Yes, I am in Isolation”
Interview : Leela Karan Sharma
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F O R
33
T H E
Volume : 3, Number : 9
ISSN : 0974-5653
RNI : JKENG/2007/26070
www.epilogue.in

M O N T H O F S E P T E M B E R 2 0 0 9

For being a zone of conflict, the politics of

Jammu and Kashmir is a well reported subject
but little has been written on the economy.
Taking advantage of the state's annual budget
and economic survey, the present issue
discusses the economic profile of Jammu and
Kashmir. An essential guide for beginners and
experts alike. A recall of J&K's Amarnath land
row agitation of 2008 also makes an
interesting reading

Epilogue Ø
3×
September 2009
 CONNECTING J&K

C onnectivity is a major issue in J&K and people in many areas taunt the
government saying that roads were laid in remote areas only because
they close to borders. Our March issue looked at the connectivity via roads,
rail and air to bring to the fore the missing links.

Mar. 2009
TREADING FAILURE

A s world watches keenly the new unfolding developments in Pakistan, our

Consulting Editor D Suba Chandran travelled to the troubled country to
bring fresh perspectives for our readers in April Issue.

Apr. 2009

J&K MOVING FORWARD

M ay issue was one of the rare collections of ideas where 12 natives from
both sides of Jammu and Kashmir poured their ideas out of the heart on
how boundaries can be blurred and relations can be strengthened.

A limited number of unbound back volumes is available in our stocks.

May 2009
A R E Y O U M I S S I N G O U R PA S T S T O R I E S

LOK SABHA POLLS 2009

W ith Prof Rekha Chowdhary looking into various aspects, the May issue
offered a complete view of the Lok Sabha elections in Jammu and
Kashmir. An interview with Finance Minister Abdul Rahim Rather explained
most critical questions on the state's economy

For booking your copies call us at 9797599365

June 2009
THE FUTURE OF JAMMU AND KASHMIR

J uly 2009 issue offered a rare insight into the whole gamut of Kashmir
issue. An ACDIS, University of Illinois at Urbana Champaign sponsored
study, which was the cover feature, examined Kashmir issue from different
perspectives.

July 2009
UNFOLDING THE LAND OF MOON

A ugust 2009 issue was one of the path-breaking in the life of Epilogue
magazine. The cover story explored many aspects of life in Ladakh and
carried a first hand of research on the state of media in the Himalayan cold
desert.

August 2009
 Epilogue
because there is more to know

www.epilogue.in CONTENTS

Editor In Verbatim 6
Zafar Iqbal Choudhary Prologue 7
Letters 8
Publisher
Yogesh Pandoh
Note Book
Consulting Editor 7 Essential Entries 9
D. Suba Chandran
Jammu V/s Kashmir
Associate Editors Jammu & Kashmir 44
Irm Amin Baig A Year After Amarnath Land Row
Tsewang Rigzin Epilogue Correspondent
Volume 3, Issue 9, September 2009
Recalling ‘Gandhi of Jammu’ 46
General Manager
Kartavya Pandoh Opinion 50
Needed Soul Searching Life
Manager IN FOCUS After Sangarsh 2008
Adarsh Rattan Bali Budget 2009-10 Kapil Sharma
(Marketing & Advertisement) Kashmir’s Democratic Catharsis 51
Riyaz Wani
Art Editor 15 Opinion
Game is lost for now as 55
Keshav Sharma Ensure Taxpayers’ Money Goes to
‘Divided we always fall’
Programme that Work
Bilal Hussain
Zafar Choudhary
Research Officer Opinion 58
Raman Sharma 17 Budget 2009-10
CUAS and the Stillborn Wannables
Phones & email 19 Ten Challenges Anmol Sharma

Office : +91 191 2493136 40 New Taxes

Features
subscriptions : +91 99060 27136
Editorial: +91 94191 80762 42 Interview Changpa Tribe’s Identity, 61
Administration: +91 94191 82518 ‘There are no quick fixes; we are Way of Live Under Threat
editor@epilogue.in working on a workable Tashi Morup
subscription@epilogue.in employment policy’ The Fur Traders and 63
Abdul Rahim Rather
The Lost Avenues
Printed and Published by Binish Gulzar & Syed Rakshanda Suman
Yogesh Pandoh for Epilogue
NewsCraft from Ibadat House, Column
Madrasa Lane, Near Graveyard, Kashmir Ki Kali... 65
Bathindi Top, Jammu, J&K - 180012 bruished and shattered
and Printed at : DEE DEE Manisha Sobhrajani
Reprographix, 3 Aikta Ashram, New History of Forts in Jammu Hills 67
Rehari Jammu (J&K) Prof. Jigar Mohammad

Disputes, if any, subject to jurisdiction

of courts and competitive tribunals in
Jammu only.

RNI : JKENJ/2007/26070
ISN : 00974-5653
Price : Rs 30
Epilogue Ø
5×
September 2009
 H E A R & H E A R
Who Said What

“Where is the angry young man…he has not been seen in the
House (Legislative Assembly) for last 12 days”
Panthers Party leader Harsh Dev asks Speaker about prolonged
absence of Chief Minister Omar Abdullah from the assembly
which was session across August

“You can check the past records also…Chief Ministers don't sit
in the Assembly for whole day…I have to attend other
important government business outside Assembly”
Chief Minister Omar Abdullah responding to opposition
criticism on his prolonged absence from Assembly as he returns
to House after 14 days

“She is continuously indulging in contempt of the House. She

thinks that assembly is a room of her home and she can dictate
any terms”
Legislative Assembly Speaker Mohammad Akbar Lone on
opposition PDP leader Mehbooba Mufti

“There have two elections in Jammu and Kashmir since I

addressed you on last Independence Day. The first one was for
state Legislative Assembly and second for Lok Sabha. Peoples of
all areas of state have participated vigorously in these elections.
This is a proof that there is no space for separatist thought in
Jammu and Kashmir”
Prime Minister Manmohan Singh in his Independence Day address
to the nation from ramparts of Red Fort in New Delhi on Aug 15

“Whom was (Justice) Muzaffar Jan (the Commissioner of Inquiry

who probed Shopian rape and murder case) seeking to please and
whose purpose did he try to serve? Never in the annals of
commissions of inquiry such irrelevant and disgraceful remarks
been made. Even a magistrate knows that rape is rape even if the
victims be of mad moral”
Constitutional expert and celebrated columnist AG Noorani in his
column in Frontline Magazine

Epilogue Ø
6×
September 2009

Invest some vision
Zafar Choudhary
A
state like Jammu and
Kashmir with vast
farmland, rich biodiversity,
mineral reserves and water
resources should ideally be
the exporter of food grains, vegetables,
mutton, poultry and milk products,
minerals and electricity. The scenario,
however, is contradictory. Take small
examples: A state like Jammu and
Kashmir with no sound industrial base
or corporate sector is expected to be a
major producer of agriculture,
horticulture and animal husbandry
products owing to agrarian character
of its economy. Official statistics
reveal that annual mutton import bill
alone stand around Rs 1300 Crores. In
case of food grains the gap between
demand and supply is nearly of the
order of 40 per cent. While there is a
huge cry across the state for
phenomenal shortage of milk and its
products, state has to import nearly
one crore eggs to meet its annual
demand of three crores. There is self
sufficiency in none. J&K is producer of
good quality of fresh fruits, mainly
apple, pear and apricot but domestic
demand is met only after importing
fruits around four times higher in
quantity than the local produce.
Another sector which should have
made Jammu and Kashmir rich enough
to take care of weak areas is a
perpetual sad story. No honest efforts
P R O L O G U E
From the Editor
were ever made to harness the hydro-
electric potential. Only less than 10%
of the total potential has so far been
exploited allowing the electricity
import bill to become biggest culprit
of state's financial disorder. Between
2006 and 2008, the Finance Ministers
conceived an innovative way of
separating the power budget from
state's general annual budget in a bid
to paint rosy picture of finances. The
annual budget for the year 2009-10
presented by the Finance Minister
Abdul Rahim Rather in Legislative
Assembly on August 10 has,
incidentally, done some justice to the
people of Jammu and Kashmir by
FEBRUARY 2008
putting things across as they exist. The
government needs to take some big
Finance Minister, in his budget speech,
leaps by going full throttle in
clearly reflected the loopholes in
harnessing the hydro-electric
management of our economy and
potential and making state self
talked freely about the weaknesses
sufficient on food grain production.
which he proposed to plug in. after
Far more than the monetary
explaining the spending proposals,
investment both these sectors need an
when the Finance Minister came to
investment of vision and long term
some revenue mobilization areas, the
policy. We have long been arguing in
measures were again ad hoc and
these columns that economic
temporary to have some order of
empowerment of Jammu and Kashmir
semblance for the time being. Some
can be a viable solution to many
fresh taxes were imposed on daily use
conflicts, if not all. Therefore, along
products like petrol, diesel, liquor,
with political measures the
mutton and poultry etc to mobilize
government must think pure business as
some additional revenue of some 69
well.
crores. These small step measures are
not going to bring any turnaround in Feedback :
state's economic outlook. The zafarchoudhary@epilogue.in
Epilogue Ø
7×
September 2009
 L E T T E R S
Readers Write

Life Without Media, Unimaginable Move beyond

Dear Editor the few places in the world being Kashmir,
No words can be too high to appreciate completely blacked out by the media is
the Rinchen Domla's work (Epilogue, also not out of place. In India, the
Ladakh also
August 2009) on state of print media in television channels and newspapers Dear Editor
Ladakh. The argument made in the have become an essential part of the We have been hearing and reading
editorial that Ladakh is perhaps one of daily life of an ordinary Indian. Given about Charkha Development and
the present media scenario in country, Communication Network's work in
it is really difficult to imagine life in Kashmir and Ladakh. While greeting
place like Ladakh, which your editorial Epilogue and Charkha for the marvelous
has described in many ways. In your work (Epilogue, August 2009) on
prologue, we see a commitment of Ladakh, I take this opportunity to make
serving the people of Ladakh through a humble complaint to the both. Why
Epilogue and I am sure you live by most of the media activities and
commitment even in the face of research works are confined in
adverse circumstances. Keep it up! Kashmir Valley and Ladakh alone.
Does anyone know why Rajouri
MANOJ KHATTAR
district has lowest literacy rate in
Department of Civics
Bombay University, Mumbai Jammu and Kashmir, why banks don't
offer loan to the
local entrepreneurs,
Leh Town is not Ladakh why local traditional
Dear Editor, forms of art and craft
After reading the August issue with keen interest, I must are being completely
tell you that your title (Unfolding the Land of Moon) was shunned by the
quite misrepresentative is not fully misleading. The focus artisans, why tribal
(Ladakh asks) too was out of place. The point here I want population has been
to make is that media has a wrong notion of understanding Ladakh with Leh district headquarters. This forced to abandon its
is completely wrong and often appears hurting to many in Kargil. Ladakh comprises of two districts of culture, why tourists
Leh and Kargil. Go the place like Nubra (in Leh) and Zanskar (in Kargil) to explore real Ladakh and don't come to this
understand hardships people face there. I would again say that your work on the state of media area? There are many
(Epilogue, August 2009) is also completely restricted to Leh district headquarters which is well questions like these
connected by air with Srinagar, Jammu, Chandigarh and Delhi. There is no question of doubting your and many hopes that
intentions but what I mean to suggest you is that there is a need to think beyond Leh township while NGOs and media will
talking about Ladakh. someday offer some
GHULAM ALI answers as we have
Kargil failed to get answers
from the government
EDITOR REPLIES:
We deeply appreciate the point raised by you and are well aware of the various contours of SHAHZAD KHAN
geographical, political and ethnic identities of Ladakh. As your read our introduction of August Rajouri
issue, we have clearly said that this is a small beginning and in the coming months we intend to do
more work in Ladakh. Since Epilogue is not a large organization to move or have stationed its
editorial staff in a place like Kargil, our coverage of ground realities in remote areas like yours
mainly depends on the local input and quality of research work. While thanking you for your
feedback, we invite you to contribute your efforts in telling the untold stories of the 'real Ladakh'
as you put.

Epilogue Ø
8×
September 2009

DIPLOMACY
Not negotiating Kashmir: Holbrooke
U nited States Special Envoy for Pakistan and
Afghanistan, Richard Holbrooke, who was on a
visit to Pakistan, said on August 20 that his visit has
nothing to do with the Indo-Pak problem, and that
he is not in Pakistan to negotiate on the Kashmir
issue. In an interview to a private
television channel, Holbrooke said it
was upto India and Pakistan to
resolve the issue bilaterally. “Any
improvement in Pak-India relations
is also good for the world,”
Holbrooke said.
In response to a question, Holbrooke
said he had never blamed the Inter Services Intelligence (ISI)
for helping the Taliban. When enquired about US assistance to
SEPARATIST LEADER'S INCARCERATION
Apex Court asks J&K Govt:
Are you scared of a woman?
A fter twice being directed by the State High Court to
shift a woman separatist leader from a Jammu jail to
Srinagar, the state government got a reprimand from the
Apex court of the country: “Is the state government scared
of a woman” the Judges of Supreme Court asked while
Epilogue Ø
9×
September 2009
NO T E BOOK
7 Essential Stories
Pakistan, Holbrooke said Islamabad needed more
help to overcome its problems, but highlighted that
such decisions cannot be taken independently by
the US president.
“Pakistan should remember one thing that the
President of the United States cannot take
decisions himself, but we can make the request to
the Congress,” the Online news network quoted
Holbrooke, as saying. Terming the energy crisis in
Pakistan as that country's biggest problem,
Holbrooke said America is ready to in this regard,
but Islamabad should try to fix the 'tremendous
amount of leakage' that exists in the whole
system. “US would help in this regard but the government and
people of Pakistan have to take lead,” he said.
referring to a plea for shifting Dukhtran-e-Millat chief Syeda
Asia Andrabi from Jammu to Srinagar jail. The Supreme
Court refused to entertain the petition filed by Jammu and
Kashmir government regarding the shifting of Andrabi.
The state government had come in appeal against the state
High Court order quashing its decision not to shift the
founder chairperson of separatist organisation Dukhtaran-e-
Milat (daughters of faith) from Jammu to Srinagar jail.
Andrabi has been pressing for her shifting from Jammu to
Srinagar jail so that she can meet her children. Her husband
is already in jail in a murder case.
A bench comprising Chief Justice K G Balakrishnan and
Justice P Sathasivam yesterday dismissed the appeal of the
state government and rejected the contention of senior
counsel Amrindar Saran that a large number of militants are
lodged in Srinagar jail and if she has been shifted to
Srinagar jail she may have access to the jailed militants and
may resume her anti-national activities.
The judges asked the counsel, ''Is the state government
scared of a woman?'' The state government has also failed to
provide data regarding the number of woman prisoners
presently lodged in Srinagar jail and also regarding the
capacity of Srinagar jail for woman prisoners, the court
observed.
 NO T E BOOK
7 Essential Stories

LOST IN TURMOIL
Govt says only 3400 persons missing, rights
groups put figures twice that
E ven though the rights groups have sharply
disputed the figures but the J&K government
has told State Legislative Assembly that an
estimated 3400 persons have been missing in
custody or otherwise since the outbreak of
armed insurgency in 1989. The human
rights groups working in Kashmir,
particularly the Association of the
Parents of Disappeared Persons, have
disputed government's figures and said
that not less than 8000 persons were
missing.
Official figures released in the
State Assembly said 3,429 persons
had disappeared between 1990 and
July 2009, with only 110 persons
missing after arrest by the security
forces. Leading local and international
rights groups have suggested over 8,000
people have disappeared in the region,
with the majority having been arrested by
Indian security forces.
The government, which gave no
further detail about the missing people,
also ruled-out forming a commission of
inquiry to probe all the cases of
disappearances, a statement released
in the assembly said.
In 2007, a local group, the
Association of Parents of Disappeared
People, said it had found 940 "nameless
graves" in 18 villages in Uri district, which
neighbours the Pakistan-administered zone
of Kashmir. Amnesty International has
urged the government to determine if any
of the graves contain the bodies of those
listed as missing by local
rights groups. Indian security
officials contend many of the
missing had crossed over to
Pakistan to join the insurgents
and say the graves are those
of "unidentified" rebels killed
in action.

Epilogue Ø
10 ×
September 2009

SEPARATIST SPACE
PM's I-Day speech trigger debate in Kashmir
P atron of the mainstream Peoples Democratic Party (PDP),
Mufti Mohammad Sayeed, as also most of the Valley's
separatist political parties---including both factions of the
Hurriyat Conference, JLKF and Jamaat-e-Islami---have
strongly disputed Prime Minister Dr Manmohan Singh's latest
interpretation of the massive participation of the Kashmiris in
recently held Assembly and Lok Sabha elections and claimed
that the democratic process had not marginalized the
separatist politics.
In sharp contrast to the tone and tenure of Chief Minister
Omar Abdullah's Independence Day speech, Prime Minister
Manmohan Singh had asserted in his ceremonial address at Red
Fort in New Delhi yesterday that the reality of massive
participation of the Kashmiris in Assembly as well as
Parliamentary elections in recent past had left “no space for
the separatist politics in Jammu & Kashmir”. Contrary to a
many speculations---including the one of an offer of ceasefire
with the militants in the holy month of Ramzan---head of the
Congress-led UPA Government did not only ignore the Kashmiri
separatists but also gave them an unprecedented affront.
Making a mockery of the J&K Chief Minister's olive branch
to the separatists, Prime Minister said in rather an Advanian
style that participation of large number of Kashmiris in the
Assembly and Lok Sabha elections had left no room for the
separatist politics in the state. It was significantly different
from Dr Singh's speeches in the last over five years as he had
repeatedly stated that his UPA Government believed in talking
to all sections of opinion, including the separatists. He had
invariably suggested the Kashmiri separatists would be taken
Epilogue Ø
11 ×
September 2009
NO T E BOOK
7 Essential Stories
There have been two elections in Jammu
& Kashmir since I addressed you on the
last Independence Day. The first one was
for the State Legislative Assembly and
the second for the Lok Sabha. People of
all areas of the State have participated
vigorously in both the elections. This is a
proof that there is no place for separatist
thought in Jammu & Kashmir.
on board in the process of finding a solution to the
Kashmiri problem. Mufti disputed Prime Minister's
interpretation of the massive participation of the
Kashmiris in the lately held elections and claimed that a
durable and lasting solution to the Kashmir problem
could be found by involving the alienated sections into a
dialogue process and strengthening their belief in the
country's democratic processes and institutions. He asserted
that the separatist leaders had an important role to play.
Mufti emphasized on demilitarization and withdrawal of
J&K Armed Forces Special Powers as also PDP's exclusive
concept of constituting a “Joint Council” of the Legislatures of
Indian-controlled Jammu & Kashmir and the Pakistani-
controlled Jammu & Kashmir.Officiating Chairman of Hurriyat
Conference (Mirwaiz), Prof Abdul Gani Bhat, found it
surprising that such a statement had been made by Dr
Manmohan Singh who had repeatedly asserted in the
Parliament that the solution to the Kashmir problem lay in a
dialogue process with an all-inclusive involvement and
participation. “We are the masters of the state and we alone
will determine its fate”, Prof Gani said in a statement.
Spokesman of Syed Ali Shah Geelani's faction of the
Hurriyat, Ayaz Akbar, said that Manmohan Singh had only
destroyed his own image of a mature and responsible political
leader by making a bellicose assertion and wrong
interpretation of the elections. He said that Prime Minister of
India had “like his predecessors” spoken the “language of
power” and thus harmed India's image in the world of
diplomacy and statesmanship. According to him, Dr Singh had
“abused the Kashmiris” by taunting them as being
“separatists”.
Identical statements of resistance poured in from Jammu
& Kashmir Liberation Front, Jamaat-e-Islami, Jamiat-e-Ahli
Hadith and Democratic Freedom Party.
 NO T E BOOK
7 Essential Stories

REPEALING AFSPA Militancy /

Merely a battle between NC, PDP Disturbing
I n recent months the demand of repeal of Armed Forces Special Powers Act has seen a complete
decentralization –traveling from political headquarters. However, the political leadership is still O wing to a slow
peace process
and a variety of
locked in a quagmire and they are making the issue more of a battle of one-upmanship between ruling
National Conference and the opposition Peoples Democratic Party. other reasons
Witnessing the discussion over the issue in Legislative Assembly recently, it clearly looked like a battle militancy in
for political survival between the two key players in Kashmir. Jammu and
Kashmir has been
Concluding his exhaustive reply to the discussion on the grants sought for his departments, Law
on constant
Minister Ali Mohammad Sagar dismissed PDP's campaign for withdrawal of AFSPA as “deceitful politics”
decline over the
and claimed that Mufti Mohammad Sayeed's party had never taken an initiative during six-year-long
years but the
PDP-Congress coalition regime in 2002-08 for revoking the special powers granted to security forces in
trends are now
1990. Even as Mehbooba Mufti confronted Sagar and blamed the NC Government for pioneering the
fast changing. In
imposition of Public Safety Act (PSA), Terrorist and Disruptive Activities (Prevention) Act (TADA),
Prevention of Terrorist Activities Act (POTA) as well as AFSPA in J&K, Sagar asserted that “misleading the recent past
the people and Assembly with lies” was characteristic of the PDP. there have been
numerous
Sagar fiercely retaliated to Ms Mufti's charge that Omar Abdullah-led coalition government had
incidents of
slapped the PSA on many people from a 14-year-old boy to 80-year-old separatist leader, Syed Ali Shah
infiltration of
Geelani, and claimed that his government had used minimum possible force to restore peace in
militants through
Kashmir valley in the last eight months. “You will have to accept Mehboobaji that it was none other
Line of Control
than your father who got Jagmohan as Governor in 1990 and imposed AFSPA on Jammu & Kashmir”,
and International
Sagar shouted on the PDP chief. “When your father was Home Minister of India, he made it a point of
Border and a
his ego to bring Jagmohan as Governor, issued an Ordinance and got the legislation done in Parliament
marked step up in
within six months”, Sagar referred to the embryonic days of Kashmir insurgency in 1990.
violence in the
“Total number of militants in 1989 was just 72. Dr (Farooq Abdullah) Sahab got them all arrested and
interiors. Top
later set them free for rehabilitation. Today, most of the leaders in this country are referring to
intelligence
militants as our children. On using the same phrase, a country-wide campaign of hatred was triggered
officials in Jammu
off against Dr Sahab. He refused to yield on Jagmohan's appointment and resigned in protest
and Kashmir feel
alongwith 29 Ministers and MLAs. We sacrificed our Government for the people of this state. Even an
that a large
orderly remains stuck to his chair”, Sagar grumbled on Ms Mufti and reminded her that it was her
number of
father, Mufti Mohammad Sayeed, and his protégé, Jagmohan, who had given special powers to armed
militants were
forces in J&K in 1990.
waiting to sneak in
“Did you take a single initiative for withdrawing AFSPA during the six years of your Government? across the border
Listen, Ms Mufti. I have checked all records and found that you people have never submitted a even as warnings
suggestion of revoking Armed Forces Special Powers Act to the Centre in the last six years of your of a “disturbing”
Government. There has been not a single meeting on this subject for six years”, Sagar shouted on
surge echoed far
Mehbooba and her colleagues on the Opposition benches and claimed that Chief Minister Omar
away from the
Abdullah had made sincere efforts from day one of his government for withdrawing the special powers
troubled Valley. At
enjoyed by the armed forces in the state notified as “disturbed area” nearly 19 years back.
a Conference of
“We don't believe in politics of deceit and double standards”, he said and claimed that even the Indus
Water Treaty of 1960 had been signed with Pakistan when Mufti Mohammad Sayeed was a leader in
Congress party and the NC founder, Sheikh Mohammad Abdullah, was in jail. He said he was indebted DEPLETING
to Mufti Sayeed who had publicly confirmed this reality and asked Ms Mufti to be correct on the facts.
As leader of the 21 MLA-strong PDP, Ms Mufti, kept on her protestation and Speaker continued asking Forests
her not to disrupt the Minister's reply, she led a walk-out of nearly a dozen of her MLAs while casting
the aspersion of being prejudiced and partisan against Mr Lone. It enraged the Speaker who warned
her against her assertions and contended that it was a “contempt to the House”. He directed
O ut of total
20,230 sq km
of forest in Jammu
Secretary Assembly, Mohammad Ramzan, to issue a notice of “contempt to the House” against Ms and Kashmir, about
Mufti. 144 sq km is

Epilogue Ø
12 ×
September 2009
 NO T E BOOK
7 Essential Stories

infiltration
Trends: 194 crossed over in 4 months
Chief Ministers on Internal Security in New Delhi on August 17, the Prime Minister Manmohan Singh remarked: “the levels
of infiltration that had come down very substantially had seen a surge this year”. “The infiltrators are more battle-
hardened, better equipped and in possession of sophisticated” communication systems, he said at the conference.
In Kashmir, top intelligence sources said hundreds of militants had gathered at 42 training camps across the Line of
Control and were waiting to cross over. “We fear escalation of
violence during Ramazan, which is just days away,” said an official.
The United Jihad Council (UJC), an umbrella body of 13 militant
outfits based in Pakistan-occupied Kashmir, has already ruled out a
unilateral cease-fire in Jammu and Kashmir during the Muslim holy
month. “If the Government of India takes a positive step in this
direction, the UJC will sit and think over it,” UJC chairman and Hizb-
ul Mujahideen supreme commander Syed Salahuddin told a local
news agency on Saturday.
The infiltration alerts, from Delhi and Kashmir, have come at a time
the LoC has seen a spurt in militant activity. Sources said there had
been at least 13 infiltration bids in the Kashmir valley alone that left
dozens of militants and several jawans dead. The Border Security
Force on August 16 foiled a major attempt when a group of militants
tried to cross a river flowing close to the international border in
Jammu's Samba sector.
Defence spokesman Lt Colonel J.S. Brar said the security forces had
strengthened the counter-infiltration mechanism on the LoC that had
suffered damage during the winter because of snowfall. “That is
why most of the militants are being gunned down near the LoC and
they do not succeed in crossing into the hinterland,” he said.
But it is learnt from sources that many militants had already entered
the Valley. “Around 195 militants have managed to infiltrate into
the Valley in the past seven months against the 84 in the
corresponding period last year. Some of them have been killed or
arrested but most are active,” an official said. He said 370 militants
were active in Kashmir and that more than 40 per cent of them were
foreigners. “This is in addition to 70 unlisted militants (unidentified
but accounted for),” he added.
Although militant violence has come down substantially over the
years, officials said a year of unrest that began with the Amarnath land row had helped the rebels, who were now back in
a position to carry out attacks with ease. “Our counter-insurgency grid has been disturbed as our focus has been to quell
street protests. In the process, the militants have regrouped and consolidated their position,” an official said.

GREEN COVER
substantially under occupation
reported to be under illegal occupation. Officials said the 12,066 sq km of forest was in Jammu region while in Kashmir it was
8,128 sq kms. Ladakh region has just 36 sq km of forest.
In Jammu, about 95 sq km of forests are under encroachment, while in the Kashmir valley, it is about 49 sq km. It said
encroachment on over 0.54 sq km has been removed in Jammu, while 18.65 sq km forest has been restored to department
after evicting illegal occupations.

Epilogue Ø
13 ×
September 2009
DIP/J-2881
 IN FOCUS
Budget 2009-10

OPINION
Ensure Taxpayers' Money Goes
to Programmes that Work
BILAL HUSSAIN

The state of Jammu and Kashmir is mired in fiscal problems that cannot be covered up with the usual
state budget fixes. The state has entered an unprecedented epoch of permanent fiscal crisis that
demands real leadership and decisive action, which unfortunately current budget to larger extent is
not endowed with. Nothing less than the solvency of the state is at stake.

T he budget 2009-10 estimates the
fiscal deficit for the current year
at Rs 2081 crore. Looking back
past year figures provide a grim picture
for the state's fiscal position. The fiscal
deficit for the year 2006-07 (Pre-actual)
[RE] was Rs 1509 crores, the same figure
for 2007-08 was Rs 2666 crore and for
the year 2008-09 (BE) it stood at Rs 2330
crore.
To further worsen the state's fiscal
position this year the government has
already reached an agreement with the
employee representatives for the
implementation of 6th Pay Commission.
The move is expected to put further
strain on the already scares resources of
state exchequer which would require Rs
4200 crore for meeting the expenses of
the pay commission. Finance Minister
(FM), Abdul Rahim Rather, too ascer-
tains this by saying, “The state has
fewer resources available at present
and the financial position of the state
has been meticulously presented before
the 13th Finance Commission. We are
hopeful that very soon the state would
be given adequate funds so that other
demands of the employees could be ful-
filled.”
To mention for the fiscal 2008-09
the state spends about 60 per cent of
the budget in paying salary-bill of the
state. At present the state has over 3.32
lakh employees on its rolls. On the main
items of expenditure, the current year's
non-plan salary provision is Rs 6,594
crore in comparison to Rs 4,973 crore of
past year. Additional provision of Rs 121
crore has been kept for salaries of
migrant employees.
Power sector is another major con-
cern for J&K, wherein the state has
failed miserably in bringing deficit due
to it down. Previous government man-
aged a zero deficit budget by taking out
power bill and put it separately as
'power budget', which hardly helped the
state to bring down its electrical energy
bill but could be termed as 'good win-
dow dressing'. The state has already the
gap between expenditure incurred on
purchase of electrical energy and reve-
nue collected has nearly doubled from
Rs 767 crore during the year 2003-04 to
Rs 1,406 crore during last year.
The interest payments and servic-
ing of debt figures of J&K has gone up by
an alarming amount in the fiscal 2008-
09. Rising interest costs and debt have
cast a shadow on the financial health of
the state. According to a report by the
Reserve Bank of India for the fiscal
2008-09 J&K figures show an increase on
interest payments and servicing of debt
(budget estimate) compared to 2007-
08. For the fiscal 2008-09 J&K was
expected to spend a sum of Rs 160,055
lakh (budgeted estimates) on interest
payments and servicing of debt, while
as in 2007-08 the state had actually
spent a huge amount of Rs 203,236 lakh
(revised estimates) for the same. While
this year the present coalition govern-
ment has kept the provision for pay-
ment of interest at Rs 1,729 crore in
comparison to last year's figure of Rs
1,602 crore. There was an immediate
need to restructure the debt of the
state as it adversely affects the state
expenditure, and the current budget in
this regard has not done much.
Every day the state spends crores
of rupees more than it receives in reve-
nue. Red ink is projected at Rs 1,729
crore for this year alone. Not only for
the current budget cycle but for years
to come, J&K must come to grips with
budget gaps and bring the present debt
level to a sustainable level to expect
least.
Present government has put some
Additional Resources Mobilization
(ARM) in form of increasing taxes in cer-
tain sectors while leaving others. The
current level of consumption of petrol

Epilogue Ø
15 ×
September 2009

in J&K is over 14 crore litres. The
increase of cess to Rs 3 per litre is
likely to yield additional revenue of
Rs 28 crore per annum and about Rs
18 crore in the current financial year.
FM proposed an employment
cess of Rs 1 per litre on diesel. The
current level of consumption of this
commodity is about 46 crore litres
per annum. Therefore, the proposed
measure is likely to yield annual reve-
nue of Rs 46 crore per annum and
additional revenue of Rs 30 crore in
the current financial year.
In case of liquor the rate of GST
on liquor is currently 20%. FM pro-
posed to increase the same to 25%.
As such, estimates of expected addi-
tional revenue on this account are
placed at Rs 21.50 crore per annum
and Rs.15 crore in the current finan-
cial years.
Nearly 1.32 crore poultry table
birds are being brought from outside
the state annually. As adequate num-
bers of day old chicks are not avail-
able within the state, the poultry
rearing units are also importing
around 2.38 crore day old chicks
which are subjected to toll tax at Rs
1 per chick. FM proposed to exempt
import of day old chicks from pay-
ment of toll tax and increase the
rate of toll tax on poultry birds from
existing Rs 2 per bird to Rs 5 per kg.
The net additional revenue on this
account is expected to be around Rs
4 crore per annum which will be uti-
lized for development of poultry sec-
tor within the state.
Nearly 16 lakh sheep & goats
are being imported from outside the
state annually to meet the local mut-
ton requirement. FM proposed
enhancement of toll tax on sheep
and goats from the existing rate of
Rs 25 per head to Rs 35 per head.
This may yield additional revenue of
Every day the state spends crores
of rupees more than it receives in
revenue. Red ink is projected at
Rs 1,729 crore for this year
alone. Not only for the current
budget cycle but for years to
come, J&K must come to grips
with budget gaps and bring the
present debt level to a sustainable
level to expect least.
***********
J&K spends about 60 per cent of
the budget in paying salary-bill
of the state. At present the state
has over 3.32 lakh employees on
its rolls. On the main items of
expenditure, the current year's
non-plan salary provision is Rs
6,594 crore in comparison to Rs
4,973 crore of past year.
Additional provision of Rs 121
crore has been kept for salaries of
migrant employees
*********
The current level of consumption
of petrol in J&K is over 14 crore
litres. The increase of cess to Rs 3
per litre is likely to yield
additional revenue of Rs 28 crore
per annum and about Rs 18
crore in the current financial year
Epilogue Ø
16 ×
September 2009
IN FOCUS
Budget 2009-10
Rs 1.60 crore annually.
From all the above raise of
taxes none of the sector yields more
than Rs 50 crore. But the sectors left
out by the state government that
takes away huge capital from the
state are exempted, what for? All
these tax raises has ultimately to
come from poor denizens of the
state.
Why are sectors that make huge
profits from the state are left out
like telecom sector (mobile
companies), which at current takes
away huge sum of Rs 1000 crore
annually from the state, a tax rate of
10% would earn Rs 100 crore for
state. This sector hardly makes a
mention in the current budget.
Outside private banks that
hardly manage the required credit
deposit ratio in the state, scarcely
lend to priority sector, and even they
shy away in lending to productive
purposes (Business lending). Why
can't state think of putting penalties
in form huge sums, which again
could provide the state huge sums?
What about the insurance sec-
tor operational here why can state
put some tax on them too who have a
market base of over Rs 1500 crore in
the state.
Why left the automobile sector,
put heavy import duty on them too
this also could prove a good annual
resource for state. And many other
sectors wherein the state gets lesser
benefits compared to outside states.
As of now, I think it is time to
reform government at all levels and
make it more accountable. What we
need is different approach to bud-
geting, turning from what we cut to
what we keep. In short, making sure
taxpayers' money goes to programs
that work, that taxpayers can afford
and people need.
 IN FOCUS
Budget 2009-10

BUDGET 2009-10

B
reaking a six-year
long precedence,
the Finance
Minister Abdul
Rahim Rather
reflected in his budget
proposals for 2009-10 the
way things existed. His two
predecessors between
2002 and 2008 –Muzaffar
Hussain Baig and Tariq
Hameed Qarra –brought in
a unique concept of Zero
Deficit Budget which would
always come for severe
criticism from Rather as
leader of Opposition. As he
returns to present ninth
Budget of his career,
Rather has clearly shown
the deficit which, of
course, is on declining
trend. A vast majority
across Jammu and Kashmir
has largely given their
word for Rather's budget
but there are some
exceptions also,
particularly coming from
industry and trade sector
and also from millions of
employment seekers. A
reading into Rather's
budget speech in the
Legislative Assembly on
August 10 gives a
reflection of ideas that
remained at the back of his
mind since January 2009
when he took over as the
Finance Minister and
sought more time (state
Budget is normally
presented in the month of
March) to touch upon the
ground realities. Excerpts
from the speech make it
simple for everyone to
understand as how rupee is
coming and where is it
going:

Epilogue Ø
17 ×
September 2009
 IN FOCUS
Budget 2009-10

suneerbhat@gmail.com

Fully Funded Plan

T
th
he state needed a liberal annual outlay to make up the erosions in At the beginning of 11 Five
resource base. To the advantage of state, the Planning Commission have
Year Plan, the growth rate for
formulated a massive plan of action which may enable J&K to access
development expenditure upto Rs.10,000 crore under various programmes. the current financial year 2009-
The State Plan outlay has been fixed at Rs.5500 crore in comparison to Rs.4500 10 for the state was targeted at
crore of last year indicating a 22.22% jump in money terms. In real terms, the
increase is much more if the transfers made from plan to non-plan are taken 8%. However, the growth rate
into account. The State plan outlay has been topped by a provision of Rs.1200 achieved during the first two
crore under PMRP. For the first time, the government have proposed the th
highest ever allocation of Rs.643 crore to meet 100% requirements of the State
financial years of 11 FYP
share for various centrally sponsored schemes which will enable the state to indicates that the stiff target of
access about Rs.1800 to 1900 crore of the central share. A sum of Rs.220 crore 8% for 2009-10 appears
provided under PMRP as counter part state share will enable us to raise
matching World Bank loans under Economic Reconstruction Agency (ERA). The difficult to be achieved. It is
flow of funds under various Central mega flagship schemes like JNNURM, expected that the state economy
NRHM, NREGA, SSY, RGVY etc shall be over and above the figures mentioned
will clock growth around 7% in
above. “What is more important”, says the Finance Minister “is the fact that
the resources for funding the state plan outlay, Centrally Sponsored Schemes 2009-10.
and other programmes have been fully tied up and thus the current year's plan
is fully funded”.

Growth Rate of GSDP at current prices was higher at 16.28% in 1996-97 as compared to 10.89% from 2002 onwards
Growth rate of GSDP at constant prices was 20.93% in 1996-97 as compared to 5.64% from 2002 onwards
Year GSDP at current price GSDP at constant price
2001-02 Rs. 18039.35 crore Rs. 16530.81 crore
2007-08 Rs. 31793.04 crore Rs. 23060.48 crore
Annual Growth Rate 10.89% p.a 5.64% p.a.
1996-97 Rs. 9124.34 crore Rs. 7327.40 crore
2001-02 Rs. 18039.35 crore Rs. 16530.81 crore
Annual Growth Rate 16.28% p.a 20.93% p.a

Epilogue Ø
18 ×
September 2009

TEN CHALLENGES
As seen by Finance Minister
The rate of growth of
1
CHALLENGE
our GSDP and our per
capita income which
used to be ahead of all
India average, six to
eight years ago, have
fallen behind and consistently
remained below the national
average afterwards.
2
The gap between
expenditure incurred on
purchase of electrical
energy and revenue
C H A L L E N G E collected has nearly
doubled from Rs.767
crore during the year 2003-04 to
Rs.1,406 crore during last year.
3
The fiscal deficit
touched a high of Rs.
2,666 crore, during the
year 2007-08.
CHALLENGE
4
In a normal situation we
should have received
Rs.200 to Rs.250 crore
more in the current
C H A L L E N G E year on account of our
share in the central
taxes. It has been, instead reduced
by about Rs.105 crore in the current
year due to economic slow down.
IN FOCUS
Budget 2009-10
During the 4-year
5
CHALLENGE
period given by the
Twelfth Finance
Commission, the
government did not
meet the FRBM targets
by the prescribed dead line,
The target growth rates set
Ä
for the state's economy at the
th
beginning of the 11 FYP
were 7% for 2007-08 and
7.5% for the year 2008-09.
which was 31 March 2009.
The growth rate for the state
Therefore, we have been denied
debt relief estimated at Rs.473 is increasing surely but
crore recommended under the slowly over the years and
Twelfth Finance Commission still lags behind the national
Award. We also lost an amount of
level growth rate.
Rs.229 crore as the government
did not hold Panchayat elections.
Further, the revenue gap grants
The Gross State Domestic
Ä
for the current financial year Product (GSDP) at factor
available under the Award are cost works out for J&K to be
about Rs.100 crore lower than the Rs 24471.31 crores,
revenue gap grant received last
year.
indicative of a growth of
6.12% in 2008-09 as
compared to the growth of
6
Plan revenue 6.28% in 2007-08
expenditure of nearly
(Advance estimates).
Rs.1200 crore was
shifted to non-plan
during a three-year
The Per Capita Income for
Ä
CHALLENGE
the state during 2007-08 at
period commencing
with 2006-07. For this purpose plan constant (1999-00) prices
resources were also transferred to works out to be Rs. 20604/-
non-plan. These transfers now
only as against the Per
form part of the non-plan gap as
no additional resources were Capita Income of Rs
mobilized during these years 27442/- at all India level
specifically to take care of this for the same period.
additional burden.
Epilogue Ø
19 ×
September 2009
 IN FOCUS
Budget 2009-10

7
A huge amount of Rs.917 crore due for payment to National
Small Savings Fund (NSSF) on account of loans taken by the State District Srinagar, Jammu
Ä
Government was not provided for in the relevant financial years. and Kathua are among the
The Government then borrowed from the market to clear the
top three ranked districts in
CHALLENGE liability. The burden of this additional borrowing has fallen on
the subsequent years including the current one. terms of Gross Per Capita
Income of Rs. 30052/-, Rs.
28712/- and Rs. 27696/-
respectively whileas Kargil is

8 9
Sixth
Central Pay
Commission
report has
C H A L L E N G E also fallen
in our way
in the current financial
year. The Government
has to bear an additional
burden of Rs.1067 crore
for the 8 months of the
current financial year on
account of increased
salaries and pension.
Funds received from various
Ministries in Government of the lowest ranked district
India under Centrally Sponsored
with Rs. 11922/- precedted
Schemes were not authorized in
by Kupwara and Leh
CHALLENGE
time and got temporarily re-
appropriated towards meeting districts with Gross Per
non-development expenses. We have Capita Income of Rs.
identified, authorised and revalidated
16360/- and Rs. 20237/-
about Rs.550 crore in the current financial
year to make up for the previous short falls respectively at Current Prices
and thus restored our credibility before the of 2005-06
concerned Ministries. Obviously, it has
resulted into additional strain on our Contribution of Primary
Ä
current year's budgetary resources. Sectors, Secondary and
tertiary sectors to the GSDP
for 2008-09 (pre) has been
25.82%, 28.29% and

10
The three-year life of Power Reform Grant amounting to
Rs.1300 crore per annum given by the Centre to the 45.89% respectively while
previous government came to an end on 31 March 2009. as at all India level, the
No such grant is now available in the current financial contribution of these sectors
year.
C H A L L E N G E to GDP was 20.55%,
24.71% and 54.74%
respectively as per figures of
Biggest Challenge 2006-07.
The biggest challenge before Jammu and Kashmir is to boost the economic The Per Capita Plan
Ä
activities to catch up with national growth rate and per capita income. There
expenditure during 2007-08
is an urgent need to control large scale flight of capital for mass procurement
of a wide variety of consumption goods such as food grains, pulses, spices, and 2008-09 works out to
oils, mutton, poultry, eggs, processed food, clothing, energy, building be Rs. 3613/- and Rs.
materials and other utility items. For this purpose, it is important to focus 3815/- respectively as
energies and resources on increasing local production and thus expanding the
compared to the Per Capita
employment base by improving our productivity, profitability and
competitiveness. Therefore, the Finance Minister says, “we intend to adopt a Plan outlay of Rs. 3254/- at
cluster approach in order to concentrate our resources on such clusters and national level for 2007-08
obtain quicker results. In all-important fields, private participation shall not (RE
only be encouraged but also pro-actively promoted”.

Epilogue Ø
20 ×
September 2009
 IN FOCUS
Budget 2009-10

Annual Plan
I
n the current year's plan of Rs.5,500 crore, the Revenue expenditure is estimated at Rs.653 crore and capital expenditure at
Rs.4,847 crore. The government have decided to give special thrust to the Sectors of Agriculture & Allied Activity, Irrigation,
Transport, Social Services including Health & Education and General Services including World Bank funded development
programmes of ERA. The exact increases in various Sectors shall get crystallized after tie up with the concerned Ministries in the
Government of India in respect of Centrally Sponsored Schemes & with the funding agencies in case of tied up allocations. To that
extent, the increases reflected in the sectoral outlays are to be taken as tentative. The allocation for agriculture and allied
activities has been proposed about 30% higher from previous year's level of Rs.151.96 crore to Rs.197.30 crore in current year. The
allocation in the Irrigation and Flood Control Sector has been kept 122% higher from the last year's level of Rs.208.85 crore to
Rs.464.33 crore in the current year. The allocation in the Transport Sector is proposed to be tentatively enhanced by 90% from the
previous level of Rs.486.20 crore to Rs.923.99 crore in the current year. The allocation in the Social Services Sector is proposed to
be increased by 42.87% from the level of Rs.1089.17 crore to Rs.1556 crore. The General Services are proposed to get enhanced
allocation of Rs.638 crore representing an increase of 36.62% over the previous year's level of Rs.467 crore.

Broad Parameters
Ä
The current year's total receipts have been estimated at
Rs. 22,739 crore in comparison to last year's figure of
Rs.19,077 crore. In the current fiscal, Rs.19,462 crore
are expected as revenue receipts and Rs.3,277 crore as
capital receipts. The current year's total revenue
expenditure is estimated at Rs.14,949 crore, indicating a
revenue-surplus of Rs.4,513 crore. The total capital
expenditure is estimated at Rs.7,790 crore. The fiscal
deficit is estimated to come down to Rs.2,081 crore
representing 5.4% of our current year's estimated GSDP
in comparison to 6.9% of last year.
Ä
The total tax revenue of the State is estimated at
Rs.3,111 crore for the current financial year as against
Rs.2,693 crore of last year. The tax GSDP ratio is
expected to improve to 11.2% in comparison to 11.0% of
last year. The VAT collections are estimated at Rs.2,066
crore as against Rs.1,853 crore of last year indicating an
increase of 15%. The State Excise is expected to yield
Rs.260 crore in the current year as against the budgeted
figure of Rs.250 crore of last year. Taxes on goods and
passengers are expected to reach Rs.316 crore in
comparison to Rs.297 crore of last year.
Ä
The non-tax revenue has been estimated at Rs.1219 crore
as against the corresponding budgeted figure of Rs.1127
crore of last year.
Ä
Market borrowings for the current year have been kept at
Rs.818 crore in comparison to Rs.1264 crore of last year.
Institutional loans for funding capital expenditure and
share in National Small Savings have been assumed at
last year's levels of Rs.700 crore and Rs.453 crore
respectively.
Ä
On the main items of expenditure, the current year's non-
plan salary provision is Rs.6,594 crore in comparison to
Rs.4,973 crore of last year. Additional provision of Rs.121
crore has been kept for salaries of migrant employees. The
provision for payment of interest has been kept at
Rs.1,729 crore in comparison to last year's figure of
Rs.1,602 crore. Provision for purchase of electrical energy
is Rs.1,996 crore. Rs.1,412 crore have been provided to
meet expenditure on pension and retirement benefits.

Growth Rate of Per Capita Income at constant prices during 1996-97

to 2001-02 at 16.25% as compared to 3.95% from 2002 onwards

2001-02 Rs. 13784.00 crore

2007-08 Rs. 17590.00 crore
Growth Rate 3.95% p.a
1996-97 Rs. 6978.00 crore
2001-02 Rs. 13784.00 crore
Growth Rate 16.25% p.a

Epilogue Ø
21 ×
September 2009
 IN FOCUS
Budget 2009-10

KEY SECTORS Plan Size of Rs.

Ä
25833.98 crore agreed
for 11th FYP period is
Importance and allocations 78.16% higher than
plan size of Rs.
14500.00 crore of 10th
Agriculture & Allied Sectors: FYP. Energy with Rs.
8196.95 crore is the
priority sector for
development followed
by Social Services sector
with an outlay of Rs.
6501.40 crore and
General Economic
Services and Transport
with outlays of
2740.98 crore and Rs.
2660.81 crore
respectively.

Budget estimates of the

Ä
state for 2008-09 stood
at Rs. 18466.00 crore

T hough the Primary Sector's

contribution in the GSDP has
slipped down to 26%, its importance
cannot be over-emphasized as it
sustains 75% of our rural population and
50 % of our work force. The main areas
of concern are low Seed Replacement
Rate, inadequate double cropping and
sub-optimal use of other inputs.
A large part of agricultural areas of the
state including Kashmir Valley have
been traditionally presumed to be
single crop areas. Even crops like
mustards, oilseeds and fodders have
not drawn 100% attention of the
farmers in double cropping. SKUAST,
Kashmir has developed varieties of
wheat seed to suit such climate and
introduced a new 'rice-wheat rotation'
which is 15.81% more
than 2007-08 figures.
technique. For the forthcoming Rabi
season, the government shall focus on Estimated
Ä
popularizing this programme. disbursements for the
Availability of manpower and pressure
on time of successive agricultural year 2008-09 were
operations prove to be important placed at Rs. 12428.00
constraints against double cropping. crore under non-plan
Accordingly, the government has
proposed 25% subsidy on the cost of
budget and Rs.
power thrashers and paddy 6038.00 crore under
transplanters under Agriculture Farm plan budget.
Mechanization Scheme to effectively
deal with these twin problems.

Epilogue Ø
22 ×
September 2009
 IN FOCUS
Budget 2009-10

Horticulture: The State Government

Ä
For Horticulture sector, the current year's proposed outlay is Rs.13.82 crore in
comparison to Rs.12.65 crore allocated last year. The department will substantially resorted to an overdraft
increase the availability of high-density plantation material over its present level of (OD) of Rs. 2299.53
nearly 2 lakh saplings per annum by crore from J&K Bank
involving private sector and ensuring
as ways and means
Current year's allocation quality control. Production of apricots in
Kargil & Leh, cherries, strawberries, (WAM) facility to meet
for horticulture sector is Rs.
plums in Kashmir Valley and other regions temporary mismatches
13.82 crore against Rs. with similar agro climatic conditions, olive in liquidity during
12.65 crore last fiscal. in Uri and Ramban areas, pears in the
Districts of Poonch and Rajouri and other
2008-09.
areas having similar agro climatical
conditions, sub-tropical fruits in the areas With the successful
Ä
of Jammu Division and cultivation of minor fruit crops in the wastelands and Kandi
introduction of the VAT
areas shall be given priority. Production of saffron, siyah zeera, aromatic plants and
herbs shall be given the much needed boost. Agriculture Production Department and in the state, the tax
Planning Department shall arrange to carry out economic analysis of various revenue has increased by
commercial operations to determine their sustainability and to identify the areas 42.25% from Rs.
where additional government support is required. A cluster approach shall be
adopted for expanding production and improving productivity.
1799.00 crore in 2006-
07 to Rs. 2559.00 crore
as per actuals for 2007-
Commercial Floriculture 08. For the year 2008-
Over 840 growers have been registered Airport Authority of India has
by the Floriculture Department, each conveyed no objection to the transfer 09, the tax revenue has
having green house facilities of at of land to the Directorate of been estimated to be Rs.
least 2 kanals. These registered Floriculture for setting up of cooling
2693.00 crore which
growers have made a good beginning chambers. Request has been made to
by selling flowers in the markets APEDA to provide necessary financial indicates 5.24%
outside the state. The government support to start work on this project, increase over 2007-08
shall actively and financially help which will help in exports of actuals.
them to explore the export market in perishable commodities like cut
the Middle East by taking advantage of flowers, delicate fresh fruits and trout
international airport at Srinagar. The fish etc. 59.72%, 31.42%,
Ä
8.68% and 0.18%
Growth rate of Net State Domestic Product (NSDP) at constant price during disbursements were
1996-97 to 2001-02 at 20.74% as compared to 5.54% from 2002 onwards
meant for revenue
account, capital
2001-02 Rs. 14184.90 crore
account, interest
2007-08 Rs. 19687.08 crore
payments and loan
Growth Rate 5.54% p.a
disbursements
1996-97 Rs. 6320.65 crore
respectively during
2001-02 Rs. 14184.90 crore 2008-09.
Growth Rate 20.74% p.a

Epilogue Ø
23 ×
September 2009
 IN FOCUS
Budget 2009-10

Sericulture Industry: As on December 2008,

Ä
Kashmir Silk was always rated as of the only 25 to 30% of the total production 944 bank branches of
best quality but immediately after de- and the rest of the cocoons are sold
monopolisation of the industry around outside the state. A corpus fund is in all Scheduled
the year 1988-89, it was severely operation for market intervention, Commercial Banks
were functioning in
J&K's annual cocoon production is J&K, constituting
estimated at 8 lakh kgs valued at Rs. 7 1.21% of total banking
crore. Cocoon rearing sustains livelihood network of 77750
of 22000 rural families in 2150
banks in the country.
villages. The consumption in local silk
units in only upto 30%, therefore, rest of it
Against deposits of Rs.
Ä
has to be sold outside state.
25885.00 crore, the
Scheduled Commercial
damaged during the period of running silk exchange and cocoon bank.
militancy. After its partial revival, the The Finance Minister has announced Banks have made
industry still sustains about 22000 rural formation of a Multi Task Force comprising advances of Rs.
families in 2150 villages producing 8 of experts from all the relevant fields to look
lakh kgs of cocoons valued at nearly into various aspects of mulberriculture, 12846.00 crore as on
Rs.7 crore. The local silk units consume sericulture, weaving and silk industry. December 2008 with
CDR of 49.63% in the
Animal Husbandry Sector state as against the
CDr of 74.76% in the
country during the same
Annual mutton consumption in
J&K is of the order of around period.
Rs. 1300 crore. Around 3.5
million sheep and goat are 80.38 of the reporting
Ä
slaughtered a year and half of area constituted the net
them are imported, mainly from area sown of the state
Gujarat. during 2007-08,
41.97% and 40.85% of
The state is woefully short in developing our animal and sheep the net area sown and
meeting its requirements of mutton, husbandry sectors. An embryo gross area sown
poultry meat, eggs and woolens. transfer technology is on
Presently we are importing nearly 16 experimental stage to develop a respectively was
lakh sheep annually for meeting the muttonous breed of sheep named irrigated for 2007-08.
shortage of mutton. We intend to Dorper. Results are expected towards
a d op t a h ol i sti c a p p roa c h i n the end of August, 2009.

Epilogue Ø
24 ×
September 2009
 IN FOCUS
Budget 2009-10

Poultry Credit Deposit ratio

Ä
The import of poultry birds is estimated (CDR) in the state is
at 1.30 Crores annually. The quantity of
eggs imported annually is estimated at improving over the
50 Crore. The consumption potential is years but its dispersal
estimated between 200 to 300 Crore.
among the districts is
The Government intends to adopt a
multi pronged strategy for increasing not encouraging.
the production of poultry meat and Ending December
eggs. Rearing capacity of day old chicks
in the government farms shall be fully 2008, the highest
utilized and establishment of hatcheries Credit Deposit Ratio
in the private sector shall be
encouraged. Import of day old chicks
was observed for
shall be facilitated so long as local Srinagar district with
production capacity of day old chicks is 84.65% followed by
Annual consumption of
improved to meet full requirement of
eggs in J&K is estimated poultry farms. The poultry department Shopian with 59.62%.
between 200 to 300 crore. shall also work out the feasibility of promoting Lowest credit deposit
50 crore are imported. large-scale hatcheries for breeding of
improved parent stock equipped with R&D
ratio of 15.12% was
facilities, in PPP mode. observed for Kargil
district, the next two
Infrastructure low ranking districts in
Emphasis is on completion of the ongoing road programmes in the current and the the credit-deposit ratio
next financial years. The progress of works under PMGSY so far has been very slow
and the government vows to provide special attention and full funding for completion
are Kishtwar (15.98%)
of all on going projects in the plan. Power is prime infrastructural requirement. and Ramban (19.06%)
Depending upon the progress of various Hydel Projects, namely Baglihar II, Sawalakot,
Ganderbal, Parnai and those in other places allocated to JKSPDC, full funding shall be
ensured in the plan of current year. Effort shall also be made to complete detailed
Cropping intensity for
Ä
project reports, clearances from various Ministries & organizations, and complete 2005-06 in the state
other formalities in respect of other approved projects. was 150.05% as
against 135.88%
Revenue realized during 1997-98 to 2001-02 at 34.48%
as compared to 23.54% from 2002 onwards intensity in country for
the same period. The
2001-02 Rs. 460.84 crore cropping intensity has
2007-08 Rs. 1328.45 crore further increased in the
Growth Rate 23.54% p.a state to 154.49%
1996-97 Rs. 169.18 crore during 2007-08.
2001-02 Rs. 460.84 crore
Growth Rate 34.48% p.a

Epilogue Ø
25 ×
September 2009
 IN FOCUS
Budget 2009-10

Social Sector On an average one

Ä
SCHOOLS WITHOUT BUILDINGS bank is available per
Rajouri 580 Plan allocation for 107.40 Sq Km and
Baramulla 538 elementary education has
13000 people. These
Anantnag 508 been hiked to Rs. 358
figures for the country
Kupwara 498 crore against Rs. 169 crore
last fiscal. work out to be 40.73
Badgam 488
Sq Km and 15000
Kathua 452
people.
Kishtwar 341 Health and Education sectors are
Kulgam 314 centric to human development policy.
Primary education for all children with 68% bank advances are
Ä
Srinagar 285 focus on female literacy and 100% received by Jammu
Ramban 280 adult literacy in a short time frame
are government's avowed goals. The
(24%) and Srinagar
Bandipora 268
plan allocations for elementary (44%) districts leaving
Pulwama 240 education are proposed to be thereby only 32%
Ganderbal 147 increased to Rs.358 crore from last
year's level of Rs.169 crore. Higher advances to be shared
Shopian 105
Kargil 104
and Technical Education sector is by the remaining 20
also being given similar treatment.
Poonch 84 Primary Health care is basic to
districts of the state.
Jammu 71 human development and secondary
and tertiary sectors meet critical Jammu and Kashmir
Ä
Doda 61 needs of the families. The Primary
economy continues to be
Reasi 18 Health Services Sector is proposed to
Udhampur 18 receive enhanced plan allocation of predominantly agrarian
Rs.164 crore in current year in although the
Leh 10 comparison to Rs.105 crore of last
Samba 2 year. Meanwhile, Rs.40 crore are contribution of
being exclusively earmarked under agriculture and its
State plan for Dal development during
the current year. Forestry sector is
allied sectors towards
proposed to be given Rs.27.50 crore in GSDP has decreased
comparison to Rs.24.50 crore of last from 51.05% in 1980-
year.
81 to 31% in 1999-00
and then 27% in 2007-
Plan allocation for
08. Individual share of
Primary Health Services
has been hiked to Rs. 164 agriculture in GDSP is
crore against Rs. 105 estimated to be 8 to
Crore last fiscal. 9%.

Epilogue Ø
26 ×
September 2009

Industries
Two private sector Textile
Parks are coming up in
Kathua district with
investment of Rs. 337
crore. 56 upcoming units
are expected to
direct/indirect employment
for 8000 persons.
The present contribution of trade and
industry to GSDP is 28.29%. The
government intends to exploit raw
materials located in the backward
regions by promoting local industry
through clusters of industrial units in
identified thrust areas like food
processing, textiles, leather
processing, handicrafts, handlooms,
minerals, Information Technology and
many others. A new shelf of techno-
economic feasibility reports shall be
prepared for this purpose and Special
Purpose Vehicles shall be created to
implement such cluster schemes. Land
measuring 500 kanals has been
earmarked for Leather Zone in
Industrial Growth Centre, Lassipora. A
Common Effluent Treatment Plant
(CETP) is under construction under the
guidance of Central Leather Research
Institute (CLRI) at a cost of Rs.642 lacs
with 50% funding by Government of
India. The CETP is expected to be
completed by March, 2010. Two Textile
Present contribution of
J&K's trade and industry
to state's GSDP is
28.29%
IN FOCUS
Budget 2009-10
th
As per 4 advance
Ä
Parks in the private sector are coming
up at Ghatti and Govindsar in Kathua
estimates, foodgrains
district over 240 kanals of land with production in the state
investment of Rs.337 crore, for 56
number of units expected to generate
during 2008-09 is
direct employment for 4000 persons to projected to increase to
be engaged in spinning, weaving,
16275 thousand
processing, garmenting and ancillary
activities as also indirect employment quintals which will
to another 4000 persons. Two clusters
record 3.62% increase
of cricket bat units and wood based
industry are being promoted at Sangam over foodgrains
and Bagh-i-Ali Mardan khan production of 15707
respectively. A silkcum-textile park is
being promoted at Zakoora. thousand quintals for
Re j u v e n a t i n g t h e e x i s t i n g 2007-08.
Industrial units is as necessary as
creation of new units. In this behalf,
the government proposes to create two Average holding size of
Ä
special rehabilitation task forces for 0.67 hectare for the
revival of sick units on fast track basis.
The Industrial Estates lying closed shall state and 1.32 hectares
be reactivated and their dilapidated for the country has been
infrastructure shall be upgraded.
Efforts are being made to spot
recorded by 2000-01
additional 20,000 kanals of wasteland Agriculture Census.
for creation of a land bank for new
industrial units, particularly in the
backward areas. Efforts are also being
Contribution of
Ä
made to locate a big chunk of agriculture and allied
wasteland where a special industrial
zone can be created.
sectors to GSDP is
The Directorate of Geology and estimated to be 27% for
Mining, which has become defunct is
2007-08 as against the
being re-activated to prospect, explore
and identify new mineral deposits of all India average of
the State. The viable economic units of
about 21% for 2006-
the public sector undertakings shall be
revived. The uneconomic units shall be 07. Horticulture
closed down and the staff given another accounts for nearly
opportunity to avail of Golden
Handshake Scheme. 45% returns of
The trade and industry have been agriculture sector in the
highlighting their problems connected
with compliance of various procedures, state.
processes and regulations. In order to
Epilogue Ø
27 ×
September 2009
 IN FOCUS
Budget 2009-10

attend to such issues on a continuous the mandatory inspections, filing of

basis, the Finance Minister has returns and other connected matters
proposed to create a standing forum in faced by them under various laws,
ÄFruit production of
the form of an inter-ministerial group including barrriers in free movement of state for 2008-09 was
of officers in association with all Stake rawmaterials and trade goods. The 16.91 lakh tones
holders. The Forum will look into the Forum shall devise procedural and IT
desirability of dispensing with some of Solutions to such problems.
posting an increase of
3.36% over 2007-08
Urban Local Bodies fruit production.
With the democratic decentralization,
the Urban Local Bodies have been
ÄDuring 2008-09,
empowered to take charge of local self
State is looking for 20,000 11.17 lakh tones of fruit
government. Their performance and kanals of wasteland in were exported outside
initiative in some areas of public rural areas for creation of
concern is indeed being appreciated.
the state of which
industrial estates.
However, voices are also being raised 98.57% was of fresh
by some quarters alleging delays in or fruits. Foreign exchange
denial of building permission in some arise if the Local Bodies adopt
cases, condonation of violation of absolutely transparent systems,
earnings on export of
building bylaws in some other cases, simplify the procedures, go for dry fruit for 2007-08
lack of sanitation and cleanliness complete automation in a time bound were Rs. 161.44 crore.
within the municipal areas, in- manner and create an efficient
sufficient system of redressal of mechanism of redressal of public
grievances, etc. In respect of one Municipal grievances. Therefore, the Finance ÄThere was 23908
Committee, the industrial units have Minister has offered to extend functional SSI units in
alleged harassment in the name of government support including financial
charging of lorry adda fee from them the State providing
help for making visible improvements
even if they claim to be not connected in these areas. I hope that our local employment to around
with the use of such lorry adda. bodies shall respond to this gesture one lakh persons ending
It is for the concerned local well in time so that IT based better and
municipal bodies to investigate as to smoother systems of e-Governance are
March 2009 as against
what extent such allegations are in place before the Award of the 22937 units ending
correct and to provide remedies as may Thirteenth Finance Commission for March 2008.
be required. We in the government feel Urban Local Bodies becomes operative
that many of such grievances would not w.e.f. 1st April, 2010. th
ÄAs per the 5 Economic
Growth Rate of Interest Payment on Borrowings during 1997-98 to 2001-02 Census-2005, there
at 2.28% p.a as compared to 8.75% p.a from 2002 onwards
were 324908
2002-03 Rs. 142.17 crore establishments in the
2008-09 Rs. 229.26 crore state as against
Growth Rate 8.75% p.a 41826989
1997-98 Rs. 117.47 crore establishments in the
2001-02 Rs. 130.88 crore country.
Growth Rate 2.28% p.a

Epilogue Ø
28 ×
September 2009
 IN FOCUS
Budget 2009-10

NREGS ÄThe number of workers

This important rural employment scheme started in 2005 has been widely welcomed
at the national level. The implementation of this scheme in Jammu and Kashmir has in the establishments
potential for further improvement. So far the government have registered 4.98 lakh
rural households and employment equivalent to 80 lakh person-days has been
was 751532 as
generated last year under this scheme for 2 compared to
l a k h r u r a l Setting a new trend, the households. One 1.7 lakh
Bank Accounts have been opened so far
100904121 workers in
so that payments
daily wage of workers of wages are made the country.
through Banks. A under NREG scheme sum of Rs. 87 crore has
been utilized has been hiked from Rs. during last year. The
19.95% of the
Ä
government now intends to generate 5
70 to Rs. 110.
crore person-days in near future under this geographical area
Scheme and take the utilization of funds to
(Jammu region
ten times at the level of Rs 800 crore. Enhancement of the existing wage rate under
NREGS from Rs.70 per day to Rs.110 per day has been proposed with immediate effect 45.89%, Kashmir
for which necessary notification shall be issued under the Minimum Wages Act. region 50.97% and
Ladakh region 0.06%)
Tourism on this side of the
The government is proceeding ahead with its
plan to prepare a vision document and a Master control line is under
Plan for sustainable tourism in the long terms
forest. This ratio for the
perspective. Offers stand already invited from
the prospective consultants for the purpose and country is 24.47%.
the same are under examination by a Committee However, the prescribed
constituted in this behalf. In the meanwhile, the
policy of private Sector investment in all fields of ratio of forest area for
Tourism, including promotion of guest-house the Hill states is 67%.
facilities, with the government playing the role
of promoter and facilitator, shall continue. The
Hotel industry has already been given tax relief on hotel tariff. ÄWhile establishments
grew at the rate of
Tax Management,Modernization 6.03% (Jammu and
J&K has already earned accolades from of information of inter and intrastate
Kashmir) and 4.69%
Empowered Committee of State level are expected to be in place by
Finance Ministers for efficient December, 2009. (India) per annum
implementation of VAT regime. The To give a push to the long pending during 1998-2005, the
successful implementation of this complete computerization of treasury
regime depends on gathering of accounts in the first phase and all corresponding rate of
information from other sources and by government accounts subsequently in a growth in the
cross verification of interstate and time bound manner is essential for good
intrastate transactions. Therefore, governance, the work has been employment was 6.85%
complete automation of the assigned to J&K e-Governance (Jammu and Kashmir)
Department has been taken in hand at a Authority which has initiated similar
cost of Rs.20 crore. The major aspect of projects for Transport and Election
and 2.78% (India).
processing of returns and cross linking Departments as well.

Epilogue Ø
29 ×
September 2009
 IN FOCUS
Budget 2009-10

VAT Measures As per the data made

Ä
The traders have been confronting a law abiding dealers. “I accordingly available by the
genuine problem of penal action by the accept this demand. The rule shall be
authorities for non compliance of rules modified accordingly”, said the FM.
Department of
which were notified much after the Rule 77 dealing with registration CA&PDS, 5.88 Lakh
date of commencement of the VAT Act of appeals requires that report of BPL and 3.71 APL
in the State. Unfortunately, this assessing authority shall be obtained
problem has not been addressed so before proceeding with any appeal. A
families are still
far. Obviously, the traders cannot be demand has been made that in case of without household
penalized for violation of rules which delay in supplying this information, latrines. By ending
did not exist but were later on given the appellate authority should
retrospective effect. The Finance proceed without such report, on the December 2008, 93295
Minister has announced a scheme of basis of information furnished by the individual household
general amnesty for all such cases appellant. The demand is justified.
latrines have been
which shall be notified shortly H o w e v e r, t h e d e p a r t m e n t o f
A m e n d m e n t s : Re g i s t e r i n g Commercial Taxes is computerizing its constructed against the
authority can demand, at its system very soon and all the record total target of 598614.
discretion, additional security from shall become available on line. The
the dealers, on eventualities of the need to obtain a report from the
existing dealer adding more assessing authority shall The sex ratio in the
Ä
commodities to its approved list etc. A automatically vanish. In order to take state as per Census
representation has been made that no care of the present concern, the 2001 stood at 892
such additional security should be Finance Minister has issued strict
demanded in cases where the existing instructions to the department that females per 1000 males.
dealers have been regularly filing all the assessing authorities must However, the results of
their returns and depositing the VAT ensure compliance to the
the sex ratio survey
amount without any default. The requirement of rule 77(a) by
demand is rational and if accepted, submitting the requisite report conducted by the
shall amount to due recognition for within 15 days time. Directorate of
Economics and
Statistics in 2007 have
Toll Plaza at shown 925 females per
Lakhanpur thousand males. These
Rs.10 crore fund has been proposed infrastructural improvements figures are almost
for expansion and modernization of combined with the improvements in similar with the figures
Toll Plaza at Lakhanpur which makes the software of the Commercial
the single point gateway to Jammu Ta x e s D e p a r t m e n t a n d E x c i s e
of 923 females per
and Kashmir. After the construction Department shall ensure that the thousand males revealed
w o r k s a r e o v e r, a p l a n f o r ambience of the Toll Plaza shall th
by 60 round of NSSO
beautification of entire surrounding change from a chaotic, disorderly &
area shall be taken up including congested commercial place into an Survey conducted
construction of durable and clean arena of serenity, calmness and during (January to June
spaces for parking of vehicles to beauty for the commuters to have a 2004)
avoid congestion, traffic jam or few moments of relaxation before
environmental pollution. These proceeding on.

Epilogue Ø
30 ×
September 2009
 IN FOCUS
Budget 2009-10

Vanaspati in Negative List Ending March 2009,

Ä
Representations have been made to the Finance Department by Industry asking for
out of 12015
scrapping the negative list. It has come to the notice that Vanaspati which is a
product of some of the local industrial units cannot be easily distinguished from habitations in J&K
Vegetable Oil which is also product of some local industrial units. Vegetable Oil is state, 8761 habitations
already on the negative list. Besides the situation has changed when Vanaspati was have been provided
accorded exemption from GST/VAT treating it as a priority industry. Therefore, the
production of Vanaspati is placed on the negative list.
water supply.

Out of the estimated

Ä
Employment Generation hydro power potential
of 20,000 MWs in the
Since January 2009, the state subordinate selection board State, 16480 MWs
made 8086 selections, PSC made 438 selections and 3835 have been identified of
youth were recruited in Police. During same period 11163 new which only 14 percent
posts have been created and 5060 referred to PSC. During this of 2318.70 MWs have
very period, 7035 posts have been referred to Police been exploited sofar.
Recruitment Board. Alongwith the previous backlog, the
vacancies available with PSC are 4,023. Similarly, the Estimated Birth Rate
Ä
vacancies available with SSSB, alongwith the backlog comes to of 19.0 per milli, Death
10,582. All the recruiting agencies have been advised to Rate of 5.8 per milli
and Infant Mortality
expedite the selection process. Therefore, nearly 22,000 more
Rate of 51 per thousand
boys & girls can hope to get a government job in the current
live births was recorded
financial year. Alongwith the appointment or selections already
in J&K for 2007
made from January, 2009 onwards, the tally of government against the all India
jobs in respect of the present government may come to 34,000. figures of 23.1, 7.4 and
55 respectively.
Representations have been made In order to adopt a well conceived
to the Finance Department by Industry strategy for alleviating the problem of With the
Ä
asking for scrapping the negative list. It unemployment in the State, there is a
has come to the notice that Vanaspati fervent requirement of a sound
commissioning of 450
which is a product of some of the local statistical base. This is more so for the MW Phase-I of
industrial units cannot be easily reason that there is a lot of Baglihar Hydroelectric
distinguished from Vegetable Oil which equivocation about the very extent and Power Project in
is also product of some local industrial nature of unemployment in the State.
units. Vegetable Oil is already on the For this purpose, it has become
December 2008, the
negative list. Besides the situation has imperative to build a sound and installed capacity of the
changed when Vanaspati was accorded dependable data base so that plausible state sector power
exemption from GST/VAT treating it as remedial measures are adopted.
projects has reached
a priority industry. Therefore, the For operationalizing this
production of Vanaspati is placed on arrangement at the ground level, the
758.70 MWs.
the negative list. Government intends to revamp the

Epilogue Ø
31 ×
September 2009

Employment Exchanges and enhance
their role, both quantitatively and
qualitatively. They will be renamed as
District Employment and Counselling
Centres. The District Centres shall
develop a reliable statistical base
including skill inventory and skill
deficiency mapping. The number of
such District Employment and
Counselling Centres shall be increased
All district employment
centers are being renamed
as employment and
conselling centers. To be re-
launched an October 2,
they will have skill
inventory and skill
deficiency mapping to help
aspirants find jobs.
from 14 to 22 so that all the districts
have a well placed institutional
arrangement for information
generation on the subject. It shall be
made mandatory for all the
unemployed youth to get themselves
registered with the District
Employment and Counselling Centre for
which the necessary formats shall be
prepared by the Department of
Economics and Statistics in a digital
mode. A notification to this effect with
all the relevant details shall be issued
by 30th of September, 2009 and the new
Centres shall be launched
simultaneously in all districts of the
State from the 2nd of October, 2009 to
coincide with the 140th birth day of
Mahatma Gandhi, the Apostle of Peace.
Buildings and other infrastructure
for the District Employment and
Counselling Centres shall have to be
provided for all the districts. The
IN FOCUS
Budget 2009-10
Finance Minister has proposed to make
a beginning with two districts in the The installed capacity
Ä
current year-one in Kashmir and one in
Jammu division.
of Central Sector power
Concurrently, the Government projects from three
intends to put in place a well conceived commissioned projects is
'State Policy on Employment' to address
1560 MWs. The
all issues relating to the problem of
unemployment in the State. The demand of Power in
Planning and Development Department J&K state for 2008-
has been directed to initiate the 09, as per the 16th
process and the policy document, “I am
confident, shall be ready to be
Power Survey conducted
launched on the 5th December, 2009, by Ministry of Energy,
the 105th birthday of the great GoI is around 2120
visionary of our State, Janab Sheikh
Mws.
Mohammed Abdullah Sahib”. The
document shall serve as a road map
ahead and I solicit valuable suggestions Against the total road
Ä
from the Hon'ble members of this length of 18809 kms
august House in arriving at a well
maintained by State
considered policy initiative. “I propose
to name this initiative as the Sher-e- R&B Department,
Kashmir Employment and Welfare 9559 kms are black
Programme for the Youth (SKEWPY)”, topped, 4832 kms
said the Finance Minister.
In the recent past (February, 2009)
metalled, 1315 kms
a number of initiatives have been shingled, 3000 kms fair
undertaken at the national level to weather and 102 kms
enhance the skill endowment base in
jeepable making the
the country. Jammu and Kashmir State
while taking its share has to create road density to be 18.55
about 50 lakh skilled persons by 2022 km per 100 Sq km of
with emphasis on exclusivity. The aver- are ending 03/2009.
age annual target works out to be 3.85
lakhs which indeed is a huge task. In
order to address ourselves to this chal- The revenue realization
Ä
lenge, the Government intends to for- of Rs. 737.83 crore
m u l a t e ' S t a t e Po l i c y o n S k i l l under Power Sector
Development' with an objective to cre-
ate 'workforce empowered with
during 2008-09 has
improved skills, knowledge and inter- increased by 6.43% as
nationally recognized qualifications to compared to the revenue
gain access to decent employment'. At
realization of Rs.
the operational level the Government
commits itself to initiate and expedite 693.24 crore for 2007-
the process of establishing 22 district 08.
level 'Rural Self Employment Training
Epilogue Ø
32 ×
September 2009

Institutes (RSETIs)' in cooperation with
the Ministry of Rural Development,
Government of India and
Public/Private Sector Banks. This insti-
tutional arrangement shall be in place
by the end of the current financial year.
The geo-climatic extremities in
the State cause a high incidence of sea-
sonal unemployment particularly in the
countryside snowballing into out-
migration of labour force. In order to
address this phenomenon and ensure
livelihood security to the rural people,
Government intends to strengthen the
premier Wage Employment Scheme
under 'National Rural Employment
Guarantee Act' by extending its scope
and enhancing wages. For this purpose
'State Employment Guarantee Council'
has been advised to take up the matter
with the Ministry of Rural
Development, Government of India for
extending the scope of the scheme by
incorporating relevant activities in the
list of already available 'Permissible
Works'.
Conventionally, government has
been perceived as the sole employer
and remedy has unfortunately been
invented in over-sizing the administra-
tive machinery. Even when this conve-
nient option has been over exhausted,
the problem of unemployment has actu-
ally proliferated. This conventional
approach has, in fact, proved counter
productive. This mindset needs to be
changed and new entrants to the labour
market motivated to adopt self
As a part of national
mission, J&K is required
to create 50 lakh skilled
persons by 2022. The
average annual target is
3.85 lakhs.
IN FOCUS
Budget 2009-10
employment ventures. A host of Central
Schemes presently in place for the pro- As against the national
Ä
motion of self employment ought to be
amplified with innovative self employ-
level road density of
ment projects under various sectors. 104.6 kms per 100
The Government proposes to empha- sq.kms of area, the state
size on mass awareness programmes to
has 18.12 kms per 100
apprise youth of the State about the
bright prospects in self employment sq. kms with 24.37 kms
privileges through J&K for Jammu division and
Entrepreneurship Development 15.93 for Kashmir
Institute.
It should be borne in mind that all
division for 2007-08.
the centrally sponsored self The lowest road density
employment schemes are credit linked is in the districts of
and the financial institutions generally Leh, Kargil, Doda
seem reluctant to extend credit facility
to the first generation entrepreneurs in
(erstwhile) and Rajouri
view of their risk perception. This has with 3.33 Kms, 6.84
negative implications on the kms, 7.77 kms and
development of entrepreneurship.
16.31 kms respectively
Such an equivocation warrants an
immediate State intervention to ensure per 100 sq. km of area
that the motivated and trained (The state road density
prospective entrants to the field of is for roads maintained
entrepreneurship/self employment are
nurtured and insulated from frustration
by PWD only)
and mental agony. To address this
problem, the State Entrepreneurship The number of
Ä
Development Institute (JKEDI) is being
registered vehicles in
asked to offer 'Entrepreneurship
Development Programme/s (EDPs)' as a March 2009 stood at
package which apart from 668427 as compared to
sensitization, training and consultancy 299104 numbers of
inputs shall include an incentive in the
form of non-refundable Seed Money to
registered vehicles in
enable prospective entrepreneurs to March 2000. The
kick start their ventures and make their number of vehicles
projects bankable. For this purpose, available per lakh of
government intends to create an
'Entrepreneurship Development Fund'
population in the state
with an initial corpus of Rs.25 crore. stood at 5342 (March
The corpus shall be utilized under a 2009) as against the
well conceived State Scheme for the
figure of 6739 at all
prospective motivated, trained and
provisionally registered first India level of March
generation entrepreneurs to start their 2004.
ventures relating to the core areas
Epilogue Ø
33 ×
September 2009
 IN FOCUS
Budget 2009-10

The total BPL

Ä
estimated population
ratio of J&K has
arrived at 21.63%
(24.21 lakh persons)
with a dispersion of
26.14% (22.00 lakh
persons) for rural areas
and 7.96% (2.21 lakh
persons) for urban areas
as per the survey
conducted in 2008 by
the Directorate of
Economics and
Statistics. Poverty ratio
at all India level for the
year 2004-05 was
found to be 27.50%
An estimated 5600 employees of J&K Government are working with 28.30% in Rural
either on contractual, Adhoc or on consolidated salary bases. and 25.70% in Urban
Government has decided to regularize these who have rendered areas as per NSSO
seven years of service and are educationally eligible for the posts. Survey.

On the basis of BPL

which inter-alia include agriculture,
horticulture, floriculture, medicinal
and aromatic plant cultivation and food
processing. This scheme too shall be
launched on 5th December,2009.
The Government intends to build
complete synergy in different Self
Employment Schemes presently in
vogue and ensure that the first
generation entrepreneurs are actually
benefited by these Schemes.
Reference, in this regard may be made
to the initiatives already taken by the
national Minorities Development &
Finance Corporation (NMDFC), a
Government of India undertaking under
the Ministry of Minority affairs which
Ä
provides loan/credit facilities to the
first generation entrepreneurs Head Count Ratio, the
belonging to the minorities on very low seven poorest districts in
(3-6 per cent ) interest rates. The said the State are Reasi,
Corporation has, for the purpose,
Ramban, Kishtwar,
nominated Jammu and Kashmir Women
Development Corporation (JKWDC) and Poonch, Kupwara,
Jammu and Kashmir Scheduled Kargil and Bandipora
castes/Scheduled Tribes (J&K SC/ST) which have more than
Corporation as the Channelizing
Agencies in the State. However, the
30 percent estimated
latter has not been able to lift any BPL population
money from NMDFC for the last five ranging between 31.09
years limiting the opportunities
percent to 37.93
available for the prospective
entrepreneurs. In order therefore to percent.
ensure that the benefits actually reach

Epilogue Ø
34 ×
September 2009

the identified clientele group, the
Government proposes to nominate JK
EDI an additional State Channelizing
Agency of NMDFC for providing
loans/credit facility to the
entrepreneurs motivated, trained and
promoted by the Institute.
The Government proposes to
revamp the Employment Department
and place it under an Employment
Facilitating Agency which shall be
created and placed under the charge of
a very senior officer. The officers shall
be hand-picked to take-up the
challenge at the district, divisional and
state level and deliver with a
missionary zeal. There will be a system
of award and punishment for good and
bad performance of officers.
An Overseas Employment
Corporation shall be created to liaise
with the placement agencies, foreign
embassies, Ministry of Labour and
Department of Overseas Employment
etc. The proposed Corporation shall
create a knowledge bank for aspirers of
overseas employment, particularly on
matters of legal requirements for
migration, work environment in various
foreign lands, mandatory formalities
and formats etc. The proposed
Corporation shall also handle matters
of employment opportunities within
the Country. We hope that its role shall
grow further after global recession
starts receding.
The proposed Employment
Facilitating Agency shall have a
Governing Body headed by the Chief
Secretary to deal with all matters
connected with employment of youth.
It will also oversee the functioning of all
Employment related organizations and
monitor progress of implementation of
all employment schemes and
programmes. The Agency shall also
identify and create opportunities of
employment in sectors like Tourism,
IN FOCUS
Budget 2009-10
Horticulture, Floriculture, Fisheries,
Health and Sericulture etc where skills The BPL Survey
Ä
rather than education are in greater
demand. conducted by the
Training of youth who may not be Directorate of
highly qualified but would be suitable Economics and
for jobs in these sectors, shall be
organized by the proposed Agency. All Statistics in 2008
the trainees shall be provided suitable reveal that the highest
stipend during the period of training.
percentage of Urban
The Agency shall facilitate setting
up of Polyclinics and Consultancies by poverty is in district
un-employed and retired doctors and Kulgam with 15.83%
engineers. The government and the
followed by district
financing institutions shall provide
package of assistance and loans in a Pulwama with 14%
manner similar to that available for and district Ganderbal
industrial units, suitably modified to
meet specific requirements of such
with 13.87%.
polyclinics and consultancies.
Lot of potential exist for The government has
Ä
meaningful utilization of knowledge, ordered for
skill and talent of our educated
unemployed youth under NREGS. Last reverification of BPL
year 350 persons were engaged as lists maintained by the
supporting staff to work as Computer
various departments in
Operators, Accounts Assistants,
Technical Assistants, Rozgar Sevikas as the State. The Deputy
well as Block level Programme Officers. Commissioners and
With the targeted increase in person-
Tehsildars have been
days of employment taking it to 5
crore, we shall be generating potential appointed as Nodal
for absorption of nearly 3000 persons in authorities for carrying
such jobs.
The government also proposes to
out the reverification
simultaneously adopt a pro active with their respective
approach for creating service related jurisdictions. The report
self employment units which may be
utilized to meet the requirements of
has to be submitted to
government departments to start with. the State Planning and
Some of the areas coming to mind Development
immediately are plumbing, electricals,
repairing of motors, gadgets,
Department within
electronic items etc which are in three months from the
demand in most of government offices. date of the issue of the
The service units promoted by
technically trained and qualified youth order i.e. 25-06-2009.
can be recognized to provide such
Epilogue Ø
35 ×
September 2009
 IN FOCUS
Budget 2009-10

services to government departments on government departments against clear

charges per visit basis, actual cost of vacancies. Their present number is Unemployment rate in
Ä
replaced parts plus wages at notified reported as 5,656. These appointees
rates. It is hoped that in due course of have been continuing in service for respect of J&K State,
time, private sector and the general considerably long time. As per the latest has been worked out to
population shall come forward to Apex Court rulings available on this
utilize their services. The requisite subject, a one time regularization of
be 5.2% (5.4% for
support for setting up of such service service can be resorted to by the males and 3.5% for
units as also a transitional support government to deal with such situations.
females) which is on
mechanism for sustaining them during The government has accordingly decided
the initial years shall be worked out by to regularize all such persons who have higher side when
the government very soon. already completed 7 years of service compared to All India
A large number of contractual, and who are academically qualified to
a d h oc a n d c on soli d a te d - sa la ry hold their respective jobs as prescribed
figures of 3.1% (3.1%
appointments have been made in various under rules. for males and 3.0% for
females) as per Usual
Gender Care Principal Status as per
The society which does not take care of its women folk starts degrading. Amongst
various welfare measures which the government intends to initiate for socio
findings of 62nd round
economic upliftment of women, a special scheme has been devised for their of NSS (July 2005-
economic empowerment. Under this scheme, 100 women entrepreneurs shall be
June 2006) report.
selected from each district taking the total to 2,200 in the first phase. They will be
granted direct loans upto Rs.3 lakh at a very low rate of 6% interest through the
State Women Development Corporation. The scope of the scheme shall be later In J&K inflation rate
Ä
extended to tehsil level. For this purpose, the government shall provide a revolving on all the series i.e.
fund of Rs.10 crore to the State Women Development Corporation, in suitable
installments depending upon the progress of the proposed scheme. The State Consumer Index of
Women Development Corporation shall be advised to ensure the techno economic Industrial Workers,
viability and profitability of the enterprises and develop a scientific monitoring
mechanism for timely interventions to ensure success of the assisted units. The
Agricultural Labourers
fields identified for this purpose include health care and pharmaceuticals; and Rural Labourers
restaurants, computers and information technology, agro based industries, was less as compared to
floriculture, cosmetics, perfumery and parlors; hosiery, ceramics, tailoring, leather
and food products etc. relative rate of inflation
in the country during
Agri Technos To Get 2008-09
More If They Work
Nearly 3300 agricultural graduates incentive of Rs.1500 per month payable Aggregate Technical and
Ä
have been engaged as Rehbar-e-Zirat. through the DRDA or Panchayat, to such of
Commercial (AT&C)
However, it is learnt that the services of the Rehbar-e-Zirats who would move
this technical human resource have not down to the panchayat level and work in losses in power are very
been properly utilized. One of the factors the field alongside the farmers, to serve as high in the state and
responsible for this is the reluctance of the a meaningful link between them and the
appointees to move to the field on one concerned departments for popularizing, have been put around
pretext or the other. In order to implementing and monitoring the 72%.
meaningfully utilize the services of the progress of various agricultural related
Rehbar-e-Zirats, I offer an additional schemes.

Epilogue Ø
36 ×
September 2009

Inclusive Development
The over all allocation of the social
welfare schemes is proposed to be
increased to Rs.138 crore in
comparison to Rs.110 crore provided
last year. Amounts available from the
Centre shall be over and above this
figure. Special provisions have been
made in the budget for development of
Gujjar and Bakerwals, Schedule Castes
and Schedule Tribes, Women and Child
Welfare. An allocation of Rs.20.77 crore
has been proposed under Tribal Sub
Plan. The allocations for the two
autonomous Hill Development Councils
in Ladakh shall be given due step up
alongwith other district plans which are
being finalized shortly.
National Rural Health Mission is a
mega national effort at ensuring
healthcare through a range of
interventions at individual, household,
community and most critically at the
health system levels. The Central
Government is using it as an essential
instrument for achieving its goal of
health care in the rural landscape.
Under NRHM, the Central Government
provides 85% of the financial assistance
leaving 15% to be raised from out of the
State's own resources.
State Government is committed to
make the most of the financial
handholding provided by the Central
Government under NRHM and
supplement its health effort in the rural
areas. In order to provide better health
care for our rural population and
Rehabilitation of Kashmiri Pandit migrants
Rehabilitation of our Kashmiri Pandit brothers and sisters and bringing them back to the social mosaic of Kashmir continues to be
of prime importance for the coalition government. That would be like a dream fulfilled for all of us. The package of 15000 jobs in
the State and private sector has been approved for them. Kashmiri Pandits who have been leading the life as migrants in various
parts of Jammu Division have been facing many hardships even though the government has taken various initiatives to ameliorate
their conditions from time to time. One of such hardship is the medical care needed in critical illness cases. The registered
migrants whose family heads are in State Government employment, are eligible to benefits under the medical scheme applicable
IN FOCUS
Budget 2009-10
The number of registered
Ä
enhance availability of doctors and
illiterate unemployed
other paramedical persons in far-off
areas of state, the State Government youths has increased to
has decided to enhance the wages of 4167 in 2008 from 4030
the doctors and paramedics working in
during 2007, thereby
these far off areas. This will attract
qualified medical talent in rural areas showing an increase of
with adequate incentives. The doctors 3.40 percent in the state.
employed in NRHM presently get wage
The number of educated
of Rs.8000 per month. Their monthly
wage would be enhanced to Rs.16000. unemployed had increased
The paramedics under NRHM are to 89796 in 2008 from
presently employed on monthly wage 82619 during 2007
of Rs.4000 They would now get a
monthly wage of Rs.9000. showing an increase of
State Government has also 8.69 percent
concurrently decided to sanction
special incentive for the doctors
serving in remote and far flung areas
FM proposed an
Ä
popularly known as difficult areas. For employment cess of Rs 1
this purpose, the difficult areas would per litre on diesel. The
be classified into two categories-
category-A (denoting more difficult
current level of
areas) and category B (denoting consumption of this
difficult areas). The doctors serving in commodity is about 46
Category-A areas would get additional
Rs. 8000 as special incentive while as
crore litres per annum.
those serving in Category-B areas would Therefore, the proposed
get additional Rs.4000. This financial measure is likely to yield
dispensation will surely attract more
annual revenue of Rs 46
and more qualified medics to serve in
rural areas and lead to tangible crore per annum and
improvement in a rural healthcare additional revenue of Rs
system. The aggregate financial
30 crore in the current
implication involved in the provision of the
above financial dispensation would be of financial year.
the order of Rs.4.30 crore per annum.
Epilogue Ø
37 ×
September 2009
 IN FOCUS
Budget 2009-10

to the state government employees. Those not falling in this

category have been hard pressed for want of any
comprehensive, regular and satisfactory mechanism. For such
category of registered migrants, who are in receipt of cash
relief, announce 50% grant from the government subject to a
ceiling of Rs.5000 per family, for meeting cost of premium for a
year, if they enlist themselves under the mediclaim policy of any
recognized Insurer. The exact requirement for such financial
assistance shall be assessed in due course of time. To start with,
I announce a budgetary allocation of Rs.10 crore for this
purpose. A budgetary allocation of Rs. 130 crore for
construction/completion of 5242 tenements for Kashmiri
migrants under the Prime Ministers Reconstruction Plan has
been proposed so that the difficulties faced by the families of
our brothers in distress are mitigated at the earliest possible. A sum of Rs. 3 crore is being additionally allocated to complete the
road to village Jagti near Nagrota where new tenements are under constructions.

Awards for Innovation

The government is extremely keen that the state as well as private sector join hands in discovering hidden talent of our society
engaged in solving local problems without any outside help. It will not only encourage creativity and innovations but will also
generate tremendous economic activity and increase our productivity. The Finance Minister has proposed to institute an award to
recognize five best innovations every year in identified fields with a prize of Rs. one lakh each. The state will also take every
possible step to get these innovations patented and popularized for the common benefit of the Society.

Rehabilitation of Victims of Militancy

The militancy of last two decades has deprived a large number of families of their bread earners. Rehabilitation of widows and
orphans is a big challenge. The government has provided 825 jobs during the last 6 months to a member of the effected family
wherever feasible. To take care of the cases where cash relief of Rs. 4 lakh in lieu of a job has been preferred, about Rs.50 crore
have been spent so far to rehabilitate 1233 families.

Employees and Pensioners

All our development programmes and
regulatory functions are being
preformed by the government
employees and, as such, their welfare
too is a legitimate concern of the
government. Against serious constraints
on our resources, the government has
announced adoption of the pay scales
recommended by the Sixth Central Pay
Commission retrospectively from Ist
January, 2006. We have also authorised
them drawal of enhanced pay of July,
2009 in the new pay scales. Sanction of
DA in the new pay bands has also been
agreed in principle and the rates of DA
effective from various dates starting
from 1.1.2006 have already been
announced. I further announce increase
in the rate of DA w.e.f. 1st.
January,2009 to 22%. The increased
amount of DA at 22% shall be paid in cash
from the first of July,2009.
Temporary Move Allowance was
fixed at Rs.550 PM a few years back for
the moving employees. A demand has
been made to the government by our
lower grade employees to increase the
same. I find the demand is genuine. I
announce a new rate of temporary Move
Allowance at Rs.650 PM which shall be
effective from August, 2009. This
measure will involve additional
expenditure of about Rs.50 lakh per
annum.
116. Serious misgivings appear to
have unnecessarily arisen on account of

Epilogue Ø
38 ×
September 2009
 IN FOCUS
Budget 2009-10

payment of arrears of pay and

pension revision and
implementation of the Sixth Central
Pay Commission Award. As the
Hon'ble members already know, the
requirement on this account is over
Rs.4000 crore. The demand for
allocation of this amount has been
already projected to the Thirteenth
Finance Commission who have to
take a view on this demand, for all
States, before finalizing their
Award. If this amount is made
available in one go, I would be the
happiest person to release 100%
arrears in cash. I appeal to the good
sense of State government
employees to maintain their
patience on this issue for a little
more time till the picture become
clear with the Thirteenth Finance
Commission Award.

New Pension Scheme

One of the causes of growing concern in
budgetary management lies in the ever
increasing expenditure on
disbursement of pensions in respect of
government as well as autonomous
bodies, statutory organizations
operating on the Grant-in-aid of the
government. The annual increase on
this expenditure is not within the
control of the government. Unlike
gradual increase in the salary bills,
usually on account of increase in DA
rates and normal annual increments in
basic pay, the increase in pension bills
takes place simultaneously on account
of increase DA rates as well as post
retirement benefits payable at the
time of superannuation. Keeping in
view the exponential rate of growth in
annual pensionary outgo, it is not
difficult to see that an off budget
solution to the problem is essential as
after some years, may be a couple of
decades, it will become absolutely
impossible to meet such expenditure
out of budgetary provisions. As this is a
universal phenomena, the matter has
been discussed time and again at
national level with a view to protect the
posterity from a financial calamity on
this account. The Central Government
and several states have introduced a
New Pension Scheme where under, the
government as employer and the
concerned employees make monthly
contributions to a pension fund. The
incidence of payment of pensions will
get shifted to this pension fund. The
scheme becomes mandatory for all new
recruits after it is notified. The new
pension scheme can be created under a
proper statute. I propose to bring a bill
before this House accordingly so as to
enforce the New Pension Scheme from
1st January, 2010.

Legislators get more to spend

There has been a long pending demand from Hon'ble Members of the Legislature increasing Constituency Development Fund from
the existing level of Rs. 35 lakh with the approval of Hon'ble Chief Minister, I announce increase in Constituency Development Fund
from existing level of Rs.35 lakh to Rs.50 lakh. Modified guidelines in this connection shall be issued very soon.

Epilogue Ø
39 ×
September 2009
 IN FOCUS
Budget 2009-10

NEW TAXES
The misunderstood mothers-in-law

A nnouncement of taxes always sounds harsh. The Finance Minister, however, had a collection of sayings to soothe the
effect. He said, “I am reminded of several quotes about taxation. One of them says that, “taxes, like Mothers-in- law, are
often misunderstood”. The other quote says “taxes are your contribution for living in a civilized society”. Be that as it may,
no budgetary exercise can be completed without resorting to some taxation measures. However, with a few exceptions in
mind, I do not intend to indulge in any substantial tax revenue raising venture for the time being”. The proposed taxation
measures are expected to yield additional revenue of Rs.69 crore in the current year. An ARM, figure of Rs.100 crore has
been kept in the budgetary document. “I propose to attain this target by making improvements in recovery of arrears or by
improved collection of current dues”, said the Finance Minister.

Petrol Diesel Liquor

Petrol is a commodity
which is used generally
by economically better
off people in our society.
The rate of tax on this
commodity in our state
is 20% with a cess of Rs.1
per litre which was fixed
many years ago. The
rate of taxation on this
item in respect of some
states goes as high as
35%. The current level of
consumption in our State
is over 14 crore litres. I
propose to increase the
cess to Rs. 3 per litre and
name it as employment
cess. I am sure this
increase is not likely to
burn a hole in the pock-
ets of those who are con-
suming this commodity.
This measure is likely to
yield additional revenue
of Rs.28 crore per annum
and about Rs.18 crore in
the current financial
year.
Similarly, the rate of tax on
diesel is 12% in our State some
of the other states have gone
to the extent of charging
more than 20% tax on this com-
modity. I am conscious of the
fact that this item involves a
larger number of persons from
the public who could be
directly and indirectly
affected by any increase in
the rate of taxation. There is
no cess on diesel. I propose to
charge an employment cess of
only Re. 1 per litre on diesel,
which will make a marginal
difference in the cost of ser-
vices being made available to
the beneficiaries who would
be ultimately bearing the inci-
dence of the proposed mea-
sure. The current level of con-
sumption of this commodity is
about 46 crore litres per
annum. Therefore, the pro-
posed measure is likely yield
annual revenue of Rs.46 crore
per annum and additional rev-
enue of Rs. 30 crore in the cur-
rent financial year.
Liquor is an area which automatically comes to mind both on
account of the principles of State policy enshrined in the
constitution as well as a measure to raise additional revenue. The
rate of GST on liquor is currently 20%. I propose to increase the
same to 25%. I will be happy in case the consumption of liquor
goes down somewhat because of my proposed measure.
However, it is more likely that lovers of this commodity may take
the proposed measure sportingly and willingly contribute a little
more to the state exchequer. As such, estimates of expected
additional revenue on this account are placed at Rs.21.50 crore
per annum and Rs.15 crore in the current financial years.
Poultry
Nearly 1.32 crore poultry table birds are being brought from
outside the state annually. They are subjected to a toll tax at
Lakhanpur @ Rs.2 per bird. If the poultry bird is reared within the
state, many people shall get employed in poultry farms under self
employment programme and also in cooperative sector. As adequate
numbers of day old chicks are not available within the state, the
poultry rearing units are also importing around 2.38 crore day old
chicks which are again subjected to toll tax at Lakhnapur @ Rs.1 per
chick. I have already explained that the government intends to
support local production of eggs, day old chicks and poultry. As a part
of the strategy, I propose to exempt import of day old chicks from
payment of toll tax and increase the rate of toll tax on poultry birds
from existing Rs.2 per bird to Rs.5 per kg. The net additional revenue
on this account is expected to be around Rs.4 crore per annum
which will be utilized for development of poultry sector within the
state.

Epilogue Ø
40 ×
September 2009
 IN FOCUS
Budget 2009-10

“
All of us who are present in this August House shall be no
doubt having a vision of their own about the future of
Jammu And Kashmir State. I too have a vision of an ideal
society which will consist of magnificent human beings
who are equal to the glory of this beautiful land,…… who
will be filled with spiritual endowment and in which the
skilled and the intelligent citizens will earn their
livelihood by honest means. Whatever be the way to
describe our individual vision, the fact remains that the
socioeconomic and spiritual upliftment of all men and
women, belonging to all castes, creeds, religions and
regions is our common goal. We can jointly turn our
vision into reality by pulling our heads together, plan
for the welfare of the people objectively and
implement all the agreed programmes in a transparent,
unbiased and judicious manner in due regard to
economy in cost, speed in time and optimizing the
peoples' satisfaction as our ultimate and joint goal. All
of us have to work in that spirit. Today we have a
golden opportunity to prove that given the financial
resources, we are collectively capable of delivering and

“
turn our state into a model state during the coming years.
This golden opportunity should never, never be lost.

- ABDUL RAHIM RATHER,

Finance Minister
EXCERPTED FROM FINANCE MINISTER’S BUDGET SPEECH
suneerbhat@gmail.com

Epilogue Ø
41 ×
September 2009
 IN FOCUS
Budget 2009-10

INTERVIEW

'There are no quick fixes;

we are working on a workable
employment policy’
Soon after presenting
annual budget for 2009-
10, Finance Minister
ABDUL RAHIM
RATHER tells AHMED
ALI FAYYAZ that
unemployment problem is
being addressed in a
practical manner.
Excerpts of an interview:
Between 2002 and 2008 but they (Finance Ministers) fudged the
you remained a most figures to show their budgets with Zero
vocal critic of your Deficit. Besides a slew of differences,
predecessors, how your the key feature of my budget is that
budget is different from clearly shows the financial position as it
their? You have shown a exists. We have a deficit of Rs 2600
deficit of some Rs 2600 Crore and this is clearly reflected.
Crore while in last six
years we have seen as The previous government
many budgets with Zero set a precedence of
Deficit. presenting separate
Yes, it is fact that I had serious budget for Power
reservations about budget proposals my Department and it
predecessors but that criticism was continued for three
always healthy and based on facts and years. You have reversed
figures provided by the previous the case. Any strong
government itself. My main challenge reasons?
was to their Zero Deficit budget. The In fact there was no reason at all for
documents presented by the presenting separate budget for Power
JULY 2009 government clearly reflected shortfalls Department. See, Power is just one of

Epilogue Ø
42 ×
September 2009

the various departments like Health,
Education etc. Do we have separate
budgets for all departments? The
argument of my predecessors was based
on the premise that separate power
budget shall streamline the financial
management. But that was a gimmick
(though I should not say like this). The
fort falls, in any case, remained.
You changed the
Economic Advisor to
Government. Was that
done to make a
difference?
We didn't remove the Economic Advisor
(Dr Haseeb Drabu, also Chairman of J&K
Bank). He resigned and we accepted the
resignation.
But you did not ask him to
stay
Why should we. If somebody does not
want to work we can't force him to
work.
Levying small taxes here
and there is not going to
make a big difference.
Your party (National
Conference) was quite
clear and explicit in
making a promise on
employment during your
election campaign. Your
election manifesto also
outlines definite
measures. How far have
you been able to go in
fulfilling this promise?
Unemployment is a serious problem
in Jammu and Kashmir. People look
towards the government as their
natural employer. I don't say that
government should not employ more
people but at the same time we
should be aware of the ground
realities. We are already largest
employer among all states in the
country. Take, for example, the case
of Gujarat. They have a population of
5 Crore and total strength of
government employees there is 4
lakh. In Jammu and Kashmir we have
a population of little over 1 Crore and
number of our government
employees is more than 5 lakh.
We are already working on
creating employment avenues and
will continue to do more. In our short
span of over six months, more than
12,000 recruitments have already
been made and towards the end of
this year the number will go up to
around 35,000. But these measures
will not help for long. We have
proposed innovative measures. The
most important thing is to have a
reliable database of the kind of
skilled and unskilled workforce
available so that a policy can be
formulated keeping in view demand-
supply in different sectors for
facilitating employment of these
youths in state, country and beyond.
We are also planning to gather details
on the nature of job market. We are
creating an employment fund to train
the unemployed youth for enhancing
their employability. Other measures
include exploring self employment
avenues. However, I can assure on
this occasion that in next couple of
years we will be in a position to
address the unemployment problem
to a large extent.
You had also talked
about stipend and
allowances to
unemployed youth.
What about that?
We never made such commitment but
let me tell you that is not any solution.
Epilogue Ø
43 ×
September 2009
IN FOCUS
Budget 2009-10
Here is an example. The previous
government engaged more than 3000
unemployed agriculture technocrats at
Rs 1500 per month without any actual
requirement on the ground. These
youths did not have any work to do for
months and now they are asking for
regularization. How can we do that
without provisions and requirement?
Well, I have proposed in my budget
speech to enhance their honorarium by
another Rs 1500 if they associate
themselves with the field work.
Look at the level of
injustice. You have
enhanced the daily
wages of NREGS workers
from Rs 70 to 110 per
day, which means a
labourer takes home Rs
3300 a month but a
post-graduate in
Agriculture or
Horticulture is getting Rs
1500 a month? These
youths have
expectations to the
government. They say
Chief Minister is of their
age and he can
understand their
problems.
You can't undermine the efforts of
NREGS workers, they participate in
nation building. At the same time we
are seized of the plight of
unemployment technocrats but the
government can't go beyond a point in
offering white collar employment. Our
resources are limited. We are heavily
dependent on central funding. Our
present resources are not beyond Rs
4300 Crore (total tax and non-tax
revenue for current fiscal) and the
present salary and pension bill is around
Rs 8800 Crore.