Mir Mudasir
The allocation of Rs 35581 crores to Jammu and Kashmir in the Union budget announced by Union Finance Minister on Tuesday hasn’t enthused many people in the UT as there hasn’t been any big project kept in the budget for the UT that has been degraded from a full-fledged state to the UT after the abrogation of Article 370 on August 5, 2019.
Though in the Union budget funds have been allocated for rehabilitation of two famous lakes in Srinagar city – Dal and Nageen. Both the lakes located in the summer capital need special attention due to growing pollution and the encroachment and it is mandatory to restore the natural beauty of these water bodies which are getting degraded with every passing year. Though the fact is that hundreds of crores have been spent on the world famous Dal lake in the last couple of decades.
Of the total allocation for UT, Rs 273 crore has been kept as grants for rehabilitation of Dal and Nageen lakes. While Rs 33923 crore have been kept for revenue resource gap of UT and Rs 279 crore kept for UT disaster response fund grant, besides Rs 476.44 crore grant towards equity contribution for 624 MW Kiru and Rs 500 crore support for capital expenditure.
However, many sectors have been ignored in the Union budget, especially two big sectors that form the backbone of the UT, tourism and the horticulture on which lakes of people in J&K or dependent for survival.
While the state BJP has hailed the budget, other political parties and trade bodies said there is nothing to cheer about the budget especially for the people of the J&K.
NC spokesman Imran Nabi said that the Union budget 2022 is disappointing for J&K.
“It fails dismally in addressing the long pending demands of agriculturists, horticulturists, artisans, MSMEs, and small businesses. There is nothing for our tourism sector as well. The allocated amount is just a jugglery of words. Union Budget 2022-23 stares clear of J&K, fails to address unemployment, inflation,” he said adding that it is mute on sustenance and rehabilitation package for daily wagers, unorganized labour class.
BJP spokesman, Altaf Thakur termed it as a real boost for J&K’s economy.
Thakur said that the budget has allocated Rs 35581 Crore for J&K, which is highly appreciable. “Out of Rs 35581 Crore, Rs 33923 Crore have been allocated to meet revenue deficit.” He said that the allocation of Rs 273 crores for rehabilitation and cleaning of Dal and Nigeen lakes in Srinagar and Rs 476 Crores for 624 MW power project Kiru are game changer.” PDP and Congress also termed the budget disappointing for the common man of the state.
“There are no measures to address the rising unemployment and unprecedented prices of all essential items of regular use. The imaginary targets of growth rate are unlikely to stimulate the sagging economy and bring respite to the slowed down economic activities. Due to lack of spending capacities of the common man, the economy has nosedived to -23% under the BJP regime,” Ravinder Raina, Congress spokesman said.
From the business community and traders there is mixed response towards the Union budget.
JCCI president Arun Gupta said the budget has nothing significant for trade and industry in the UT. “It is a big disappointment for traders and industrialists, who are under mounting pressure due to restrictions and continuous setbacks in the last over two years due to pandemic and its related problems,” he added.
“The government has announced certain benefits for overall development of the country, but what is missing in the budget is a big announcement for marginal traders who were worst-hit by the pandemic and expecting a relief from the Modi government in the form of significant sops or some other big incentives,” Gupta said.
Manik Batra, chairperson, Assocham‘s J&K council said, “The announcement of new national highways and logistic parks at four locations will make the supply chain more robust and also reduce the cost of transportation.”
Bari Brahmana Industrial Association while terming it a good budget said that it is industry friendly but demanded that at least one multi-model logistics park should be allotted to J&K.
President FCIK, Shahid Kamili said they were also expecting a PM Development Initiative scheme for the J&K as the North East is getting Rs 1500 crore for developmental projects in the budget 2022-23
In a statement, Federation Chamber of Industries Kashmir Secretary-General Ovees Qadir Jamie said though the ECGLS scheme has been extended up to March 2023 with an additional Rs 50,000 crore infusion, “the infusion of capital without work in MSMEís sector is not going to generate the results.”
“The earlier Rehabilitation Scheme has not served the purpose as the paid-up Interest and Installment have been capitalized and rescheduled,” he said adding that Industry was expecting financial support for the closure for the businesses by the lockdown imposed by the government from August 2019.
He said that FCIK sees the Budget presented by the Finance Minister for the year 2022-23 has no road map for the J&K Industrial sector. The government on paper is keen to develop the Industrial sector and invite Investors from various states to set up units in J&K.
“But the existing Industrial sector is on the verge of closure due to the turbulent conditions from the last few years particularly after August 2019. The existing Industry is turning towards sickness and prospective entrepreneurs are keeping their distance from setting up new units.”
Peoples Conference vice president, Abdul Gani Vakil while reacting on the Union budget sops for J&K said that Vakil was saying that it was unfortunate that the Centre was failing to understand that the fruit industry is the backbone of the economy of Kashmir. “Nothing had been said or done to promote and strengthen the industry. J&K produces more than 30,000 metric tonnes of apples, only 15,000 metric tonnes have a market and the remaining 15,000 metric tonnes, which are B and C grade, have no place in the market and get wasted as the government has no plan to utilise the produce.”
He said the government has not offered any concessions to the fruit industry which has been badly hit due to COVID-19, unrest, weather vagaries and the illegal import of Iranian apples.
