Planning Commission (Financial Resources Division) ---- Brief for Annual Plan JAMMU & KASHMIR

Transcription

1 JAMMU & KASHMIR 5 th July 2013 Planning Commission (Financial Resources Division) ---- Brief for Annual Plan JAMMU & KASHMIR A. Plan Performance of the State: Achievement of approved plan outlays during the Eleventh Five Year Plan ( to ) and the first year of the Twelfth Five Year Plan for the State of Jammu & Kashmir are shown below. Year Originally Approved Outlay Central Assistance (Grants) Achievement of the Plan Outlay Central Assistance as % of Approved Outlay Expenditure Exp/ Plan Outlay GSDP Expenditure as % of GSDP Total 11th Plan * Anticipated expenditure. GSDP as per CSO series (current prices). B. ASSUMPTIONS UNDERLYING THE ESTIMATION OF ANNUAL PLAN JAMMU & KASHMIR Indicators Percentage increase over LE (State Est.) Share in Central Taxes 15.11% State Own Tax Revenues 15.48% 7.12 %. (State Govt.) Own Non Tax Revenues % (after Improvement in Power sector by Rs. 300 crore) Interest Payments 24% (State Govt.) Modified to 15% Pension Payments 10.61%

2 C. 13 TH FINANCE COMMISSION GRANTS: As per the recommendation of the 13 th Finance Commission the total Grants for Jammu & Kashmir for the year is Rs crore. The Plan and Non Plan grants for Jammu & Kashmir for are as under: (i) Plan Grants (Rs. Crore) S.No Grants Elementary Education Protection of Forests Incentive for Issuing UIDs District Innovation Fund State specific Needs A Total Plan Grants (ii) Non Plan Grants (Rs. Crore) S.No Non- Plan Grants Non Plan Revenue Deficit Grant Local Bodies ( Total) i. Local Bodies (General Basic) ii. Local Bodies (General Performance) Local Bodies (Spl. Area Basic iii. Grants) Local Bodies (Spl. Area iv. Performance Grants) Disaster Relief Fund (Centre Share) Capacity Building Delivery of Justice Grant for State Statistical Systems Employee & Pension database Maintenance of Roads & Bridges Water sector B. Total Non-Plan Grants Total (A +B) D. SALARY AND PAY REVISION ITEMS Pre- actual 12 AP LE (State Est.) (FR Est.) Salaries (Non-plan Non-Dev Exp) Salaries (Non-plan Dev Exp) Pay and DA revision Total Salaries % change over previous year Salaries (Non-Dev Exp) Salaries (Dev Exp) Total Salaries

3 E. SCHEME OF FINANCING ANNUAL PLAN : JAMMU & KASHMIR Draft Scheme of Financing (SOF) for Annual Plan is placed at Annex I. Details of Allocation/ of Central Assistance are at Annex- IA. Balance of Current Revenue (BCR) details are at Annex-II. Details of the GBS and Total Central Assistance to the State of Jammu & Kashmir are at Annex III. F. ISSUES PERTAINING TO THE STATE FINANCES (i) Desired Plan Size: The Desired Plan size of the State of Jammu & Kashmir for is Rs crore against the approved Plan Outlay of Rs.7300 crore in (AP) and anticipated expenditure of Rs.6008 crore. The Plan resources for for Jammu & Kashmir have been worked out including 13 th Finance Commission Grants, Share of Central Taxes as per Union Budget, Normal Central Assistance as per Gadgil Mukherjee Formula, Scheme wise ACAs have been included based on budgetary allocation, information from concerned Ministries/Subject Divisions and Budgetary borrowing as per MoF ceiling, which has been enhanced subject to MoF approval by Rs.1000 crore. (ii) Power Sector : Pre- AP LE State Est FR Est (modified) Power projects receipts Power NPR Exp Power projects (net) During (AP), the power sector deficit was indicated at Rs.(-)1321 crore & was expected to improve subsequently. However, as per (LE) there is deterioration to Rs. (-) 1880 crore. As per P & E Division, Planning Commission, AT& C losses are too high at 73%. This needs to be brought down over a period of time. The T&D losses in the State continues to be very high. The actual losses as reported by JKPDD were 63.04%, 62.03% & 61.44% in , and respectively. It has projected to bring it down to 46.72% & 46.36% during and respectively. Similarly, collection efficiency of the billed energy is reported around at about 71.% with the result AT&C losses in J&K State is in the vicinity of around 73% ( ). For , the State Govt. has indicated the power sector deficit at Rs. (-)1751 crore. In the FR estimates, it has been assumed that the receipts should increase further by Rs.300 crore & the NPRE should be contained at Rs crore i.e., lower by Rs. 400 crore. Hence total improvement in power sector deficit (net) by Rs. 700 crore.

4 (iii) Borrowing Ceiling: Items Pre- s LE (Est.) State Govt, Budgetary Borrowings (net) (BB) Borrowing ceiling (M/o Finance) GSDP BB as % to GSDP MoF ceiling as % of GSDP GSDP projection as per Ministry of Finance for is Rs crore. (3.5 % = Rs crore) GSDP as per CSO updated upto & projected at Rs crore for (growth rate of 11.5% as per 13 th F.C). (iv) The SPA/SCA and SPA-PMRP for Jammu & Kashmir is as follows: (Rs. Crore) -Grants Year Allocation SPA - Allocati on SPA- PMRP Allocat ion SCA - Allocati on Total (SPA+ PMRP+ SCA) Allocation SPA SPA - PMRP SCA Total (SPA+ SCA) * PMRP releases are as per State Plan Division, Planning Commission. * For (AP), the allocation for SPA/ SCA and PMRP was subject to availability of additional resources subject to MoF of Rs crore. Note: Conventionally, PMRP is accessed from the budget line SPA, but has not been a part of the State Plan in earlier years. Technically, PMRP (State Sector) should also be a part of State Plan to bring it in line with Union Budget Classification.

5 PROFILE OF JAMMU & KASHMIR: The profile of Jammu & Kashmir economy and its Fiscal overview is given below in Table 1-5 and Tables 6 9 respectively Table-1 Growth of GSDP at constant prices (in percent) Sl States No Arunachal Pradesh Assam Manipur Meghalaya Mizoram NA 6 Nagaland Sikkim NA 8 Tripura Himachal Pradesh Jammu & Kashmir Uttarakhand All-India GDP ( base) Source: Central Statistics Office ( Series) as on Sl. No. States Table-2 Per Capita NSDP at current prices (In Rupees) Arunachal Pradesh Assam Manipur Meghalaya Mizoram NA 6 Nagaland Sikkim NA 8 Tripura Himachal Pradesh Jammu & Kashmir Uttarakhand All-India per capita NNI Source: Central Statistics Office ( Series) as on Table 3 Sectoral Growth Rates of GSDP (in percent ) Sectors/ Years Agr. And Allied Industry Services Overall Source: CSO ( series) and 11 th Plan Documents

6 Table 4 Credit Deposit Ratio of Jammu & Kashmir ( in %) Items Deposit (in Rs. Crore) 21,956 25,148 29,355 34,233 40,377 49,577 Credit(in Rs. Crore) 10,377 12,090 13,587 16,050 15,000 16,985 CD ratio ROG(deposit) ROG(credit) (6.54) Source : Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks, March 2011 & 2012, RBI. Table-5 Credit Deposit Ratio of Special Category States States Arunachal Pradesh Assam Himachal Pradesh Jammu & Kashmir Manipur Meghalaya Mizoram Nagaland Sikkim Tamil Nadu Tripura Uttarakhand All India Source : Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks, March 2011 & 2012, RBI. Table 6: Fiscal Profile of Jammu & Kashmir (as % of GSDP) Items/ Years BE States Own Tax Revenues Revenue Deficit (-) Fiscal Deficit (-) Primary Deficit (-) Outstanding Liabilities (OL) IP/ TRR (%) IP : Interest Payments; TRR: Total Revenue Receipts Source: BOE and GSDP as per CSO ( series)

7 SL No. Table 7 State Own Tax Revenue Jammu & Kashmir (A comparison with neighbouring States) States (s) Special Category (s) (s) (s) (as % of GSDP) (Pre s) (BE) 1 Arunachal Pradesh Assam Manipur Meghalaya Mizoram Nagaland Sikkim Tripura Himachal Pradesh Jammu & Kashmir Uttarakhand Average SCS Source: Based on CSO-new series current prices as on Table 8 Per Capita Profile of the State- Jammu & Kashmir (In Rupees) Items/ Years BE Own Tax Revenue Revenue Receipts Plan Expenditure Total Expenditure Note: Population figures of and are based on trend.

8 Table 9 Fiscal Overview: Jammu & Kashmir (Provisional ) (BE) (1) (2) (3) (4) (5) (6) (7) (8) (C U R R E N T P R I C E S) 1 Tax Revenue a State s Own Tax Revenue b Share in Central Taxes Non Tax Revenue a State s Own Non-Tax Revenue 2b Grants Total Revenue Receipts Non Debt Capital Receipts Total Receipts Revenue Expenditure a Plan Expenditure b Non Plan Revenue Expenditure of which i) Interest Payments ii) Pensions iii) Salaries Capital Expenditure (8+9) a Plan (8a+9a) b Non Plan (8b+9b) Capital Outlay a Plan b Non Plan Loans & Advances a Plan b Non Plan Total Expenditure (6+7) a Plan (6a+7a) b Non Plan (6b+7b) Revenue deficit (-)/ (+) Surplus 12 Fiscal Deficit (+)/ Surplus (-) ( ) 13 Primary Deficit [ (b)(i)] 14 Total Outstanding Liabilities (as at the end of the year) 15 GSDP (at current prices) series 16 Population (crore) Note: Population figures for based on linear trend.

9 Annex-I DRAFT SCHEME OF FINANCING FOR THE ANNUAL PLAN JAMMU & KASHMIR Sl. Items Annual Plan No Pre- AP LE (State est.) (FR est.) State Government s 1 Own Funds (a to e) a BCR b MCR (excluding deductions for repayment of c Plan Grants from GoI (13 th FC) d ARM e Adjustment of Opening balance State Government s Budgetary Borrowings (i-ii) (I) Gross Borrowings (a to e) a Gross Accretion to State Provident Fund b Gross Small Savings c Gross Market Borrowings d Gross Negotiated Loans ( to vi) e Bonds/Debentures F. Loans portion of ACA for EAPs (II) Repayments (a to e) a Repayment/withdrawal of Provident Fund b Repayment to Small Savings c Repayment of Market Borrowings d Repayment of Negotiated Loans e Repayments Others Central Assistance - Grants (details in Annexure-IA) A. State Government Resources (1+2+3) B. State Govt. Resources net of Plan transfer to PSE s and Local Bodies MCR for indicated by the State Government has been retained at the same level as in (AP).

10 Annex IA DETAILS OF CENTRAL ASSISTANCE: JAMMU & KASHMIR Sl. No. Items A. Transfer through the treasury route AP upto FR Est. (a) (b) (c) Normal Central Assistance, SPA and SCA 1 Normal Central Assistance (NCA) Special Plan Assistance (SPA) excl. PMRP Special Central Assistance (SCA) untied Adj. of Advance SPA Sub total of (a) Flagship ACA Schemes National Social Assistance Programme (NSAP), including Annapurna Backward Region Grant Fund (BRGF) Accelerated Irrigation Benefit Programme (AIBP) Jawaharlal Nehru National Urban Renewal 4 Mission (JNNURM) Rashtriya Krishi Vikas Yojana (RKVY) Sub total of (b) Other ACA Schemes 1 Tribal Sub Plan (TSP) Grants Under Proviso to Article 275 (1) Border Areas Development Programme Roads and Bridges National E-Governance Action Plan (NEGAP) ACA for EAPs Sub total of (c ) Total of A: (a+b+c) B. Direct Transfer 1 Members of Parliament Local Area Development (MPLADS) Grand Total A+B for SPA, includes releases under PMRP (State Sector). Note: Conventionally, PMRP is accessed from the budget-line SPA, but has not been a part of the State Plan in earlier years. Technically, PMRP (State Sector) should also be a part of State Plan to bring it in line with Union Budget Classification.

11 Annex II BALANCE FROM CURRENT REVENUES FOR ANNUAL PLAN JAMMU & KASHMIR Sl. No. Items Pre- AP LE State Est ( ) FR Est (modified) I. NON PLAN REVENUE RECEIPTS (1 to 4) Share in Central Taxes State's Own Tax Revenue State's Own Non Tax Revenue Grants From Centre (4.1 to 4.4) Revenue Deficit Grant Central Share of Calamity 4.2 Relief Fund Grants for Local Bodies Other Non-Plan Grants ( FC) Other Non-Plan Grants II. 5 NON PLAN REVENUE EXPENDITURE (5 to 8) Non-Development Expenditure (5.1 to 5.4) Interest Payments Pension Payments Salaries Others Development Expenditure (6.1 to 6.2) Salaries Others Pay and DA revision (Not included in 5.3 and 6.1) Non Plan Transfers to 8 Local Bodies Urban Local Bodies Rural Local Bodies III. BCR without ARM (I-II) (-) (-) (-) (-) (-)

12 Annex-III Jammu & Kashmir GROSS BUDGETARY SUPPORT (GBS) in , & Item RE BE GBS for States & UTs Plan* GBS for Central Ministries RE/ (Y-O-Y Growth) BE/ RE (Y-O-Y Growth) Percentage Share of Total GBS BE 1,04,016 1,12,002 1,36, ,08,359 3,17,185 4,19, Total GBS 4,12,375 4,29,187 5,55, Including Union Territories with & without legislatures. TOTAL CENTRAL ASSISTANCE TO STATES IN , & Item Central Assistance to States & UTs Plan $ Centrally Sponsored schemes (CSS) RE BE RE/ (Y-O-Y Growth) BE/ RE (Y-O-Y Growth) Percentage Share of Total Assistance to States/UTs BE 98,774 1,08,626 1,31, ,49,220 1,44,088 1,86, Total Assistance to States/UTs 2,47,994 2,52,714 3,18, $ Excluding Union Territories with legislatures. TOTAL CENTRAL ASSISTANCE FROM CENTRE TO JAMMU & KASHMIR IN , & Items Central Assistance to States & UTs Plan All India Jammu & Kashmir Jammu & Kashmir (% to All India) Centrally Sponsored Schemes All India 159, , , Jammu & Kashmir 2, , , Jammu & Kashmir (% to All India) Total (CA to States +CSS) All India Jammu & Kashmir Jammu & Kashmir (% to All India)

13 No. 4/10/2012-FR Planning Commission (Financial Resources Division) *** JAMMU & KASHMIR Subject: Estimates of Financial Resources for the Annual Plan : Discussion with Chief Minister, Jammu & Kashmir FR Brief. A brief Note on Estimates of Financial Resources for the Annual Plan of Jammu & Kashmir is enclosed for kind perusal please. 2. PS to Deputy Chairman 3. PS to Member (BKC) 4. PS to Member (SC) 5. PS to Member (SH) 6. PS to Member (NJ) 7. PS to Member (AS) 8. PS to Member (MS) 9. PS to Member (KK) 10. PS to Member (AM) 11. PS to Secretary Copy to: (i) Adviser (SP-Jammu & Kashmir) (ii) JS(PF-I), D/o Expenditure, North Block, New Delhi (iii) Adviser (FR)/JS (SP) (iv) Director (SP-Coord.) (v) Consultant (FR) SL/ Director (FR)-KM/ Dy.Adv (SD) (vi) Dy. Adviser-SP (Jammu & Kashmir) (vii) SRO (FR) JH (viii) YP(FR) (SK/JS)/FR Division (Shraddha Kothari) Young Professional (FR)