The Legitimate Desk
On Saturday, the Nirmala Sitharaman became the first Union Finance minister to present the budget for the two newly created Union Territories, Jammu Kashmir and Ladakh. This would also be the first budget of two UT’s after the erstwhile state was downgraded to two UT’s alongside scrapping its special constitutional position on August 5 by Modi regime. With the new political arrangements in place for the erstwhile state, the Jammu Kashmir and Ladakh separately are directly run by Union Home Ministry.
The constitutional provisions were scrapped by Modi government with the bundle of promises of bringing massive socio infrastructural development in the region. The regime at the centre had assured the people of two UT’s to have new roads, schools, hospitals built since successive regimes in the region have failed the people. Amit Shah, Union Home minister who directly controls the affairs of twin UT’s now is on record saying that in Parliament that had the money pumped into Kashmir so far utilized judiciously, ‘Kashmiris would have got gold roof tops’. Shah is right in his observations. Kashmir is marred with corruption, nepotism and poor accountability in system. This paved the way for the scrapping of Article 370 for New Delhi.
So the people have set high hopes on centre government since the local leadership that acted as a bridge between the people of Kashmir and Delhi is no more on scene. MHA is directly looking after its affairs. But what has it changed so far in Kashmir. The question is yet o be changed. The budget of Rs 30000 crores for the Jammu Kashmir didn’t please anyone; rather it does not carry any hope for the socio infrastructural build-up as promised to the people. The Rs 30000 corore is almost an amount what state requires to run its machinery.
“We have a requirement of Rs 30000 crores only to pay the salary bills of over 4.5 lakh government employees. You have the bureaucratic infrastructure, revenue expenditures and other requirements to meet out,” says senior Journalist Riyaz Masroor.
Masroor underlines the need of some immediate revenue reforms for Kashmir.
“We have here a need for massive developmental douse. The weather condition of Kashmir is a big worry. Security situation often disturbs the normal life. So there is a need for immediate reforms that could help people” he adds.
Masroor, however, says that Kashmiris are still waiting for some big economic announcements by centre that could bring immediate relief to the people.
After August 5 major decision, Kashmir witnessed the longest spell of spontaneous shutdown. The losses by the business fraternity are estimated upto Rs 15000 crores in first three months. While lots of manufacturing and outsourcing units in Kashmir have shut their business owing to unbearable financial losses; the predominant retails sector almost crippled and is unable to overcome the financial trauma. The KCCI, influential business fraternity of Kashmir which had presented the initial report on business losses in Kashmir, however, claim that the losses are much higher since the shutdown prolonged for over six months.
“Our expectations are yet to be met by the Union government. Rs 30000 crore is an insignificant amount to bail out the Kashmir from its prevailing economic crisis,” says KCCI vice president Abdul Majeed Mir.
Alongside the prolonged shutdown, Mir blames the internet suspension also for business losses.
“The business climate in Kashmir was already shoddy owing to prevailing security related issues. We suffered in 2008, 2010 2014, and 2016 and now in 2019 as well. Before we could recover losses, another calamity stands in offing to strike our businesses,” he says, adding that the GST imposition on certain products was unfair and reduced its sales.
Pertinently, the report by the Union Cabinet in 2018 has also revealed that GST has adversely affected the business in Kashmir, especially its main tourism sector.
“We have learnt that some separate package of Rs 37000 crores by Union government is in offing to bail out the Kashmir’s economy that has incurred huge losses. We are waiting for that.”
Kashmir is required a huge financial layout that would boost its socio-economic infrastructure. The major hurdle for its socioeconomic growth is its poor road network followed by typical topography and harsh weather conditions.
But some critics suggest that Modi has a distinguish way of presenting things and most of its major announcements have not been of traditional budget.
“You talk about demonetization or GST both were not proposed in the financial budget. Similarly, when he came to Kashmir in 2015 he announced a mega developmental package of Rs 80000 for Jammu and Kashmir that too was not part of annual budget,” said, one of the economist and academician wishing not to be named.
“There is a massive developmental package waiting for Jammu and Kashmir. You see the new dawn of development in the UT very soon,” asserts BJP spokesman Anil Gupta.
Gupta says that before the approval of any such package government of India is on a mission to clean up the machinery from corrupt people. Once the system is set in order and the efficiency is brought in government machinery for executing developmental packages, the money would will pump in,” he adds.
Meanwhile, while presenting the budget in Kashmir the finance minister recited the versus of written by Dina Nath Kaul, in Kashmiri and then the meaning in Hindi: “Humara watan khilte hue Shalimar bagh jaise, humara watan Dal lake mein khilte hue kamal jaisa, nau jawanon ke garam khoon jaisa.”
