Traders and political parties in Jammu and Kashmir described the Centre’s budget announcement on account of its revenue component, as “disappointing” and “far below the expectations
The Union Government on Tuesday allocated Rs 35,581.44 crore in the Budget 2022-23 for Jammu and Kashmir under assistance, grants and loans, an increase of just around Rs 800 crore from last year. Of the total budget allocated for J&K, Rs 33,923 crore will go into meeting the revenue deficit in the Union Territory.
The Central Government has also allocated Rs 5,958 cr for Ladakh in the current fiscal. According to the Budget 2022-23 document, Rs 273 crore has been allocated as grants towards the rehabilitation of Dal and Nigeen lakes. The two water bodies are centrestage of tourist attractions in the summer capital Srinagar.
The government has also allocated Rs 279 crore as grants towards the Disaster Response Fund. The Union Government has also allocated Rs 500 crore as support for capital expenditure. The major highlight of the J&K budget is Rs 476.44 crore which has been allocated as grants towards equity for the 800 MW Ratle hydroelectric project and Rs 130 crore for the 624 MW Kiru hydroelectric project.
The two power projects, which were languishing for several years due to lack of funding and other infrastructure-related issues, are expected to receive a major boost with the fresh impetus announced by the Union Finance Minister Nirmala Sitharaman in her budget speech.
The allocation for Jammu and Kashmir is the highest among all the Union Territories in the country with Andaman and Nicobar getting Rs 5,703.65 crore, Lakshadweep getting Rs 1,394.75 crore, Chandigarh getting Rs 4,846.79 crore, Dadra and Nagar Haveli and Daman and Diu with Rs 2,374.10 crore.
The business fraternity had pegged hopes on the Union government for an exclusive financial stimulus for Jammu and Kashmir where the economy has suffered a double-whammy due to the security lockdown in the aftermath of Article 370 abrogation and COVID-19 pandemic.
However, with the presentation of the Budget 2022-23 by Union Finance Minister Nirmala Sitharaman, the business fraternity in both Kashmir and Jammu divisions of the Union Territory has been left disappointed.
Kashmir Chamber of Commerce and Industries (KCCI), a conglomerate of industry leaders based in the Valley, said the Union budget has let down the business fraternity who were expecting a special stimulus for reviving the economy.
“Our businesses are constantly facing losses over the last three years due to lockdowns. We were expecting a special package for J&K but, at the face of it, no major announcement was made in the budget. It (budget) has disappointed the business fraternity,” KCCI President, Sheikh Ashiq said.
Following the abrogation of Article 370, a massive security clampdown was imposed in Kashmir which lasted for several months, disrupting the local businesses and denting the economy of the erstwhile state. According to one estimate, the losses due to shutdown in the first four months following Article 370 abrogation have been pegged at more than Rs 17,800 cr.
Even as the situation had barely returned to normal in 2020, the outbreak of the COVID-19 pandemic in the world crippled the already battered businesses in J&K with losses mounting to more than Rs 40,000 crores.
Jammu Chamber of Commerce and Industry (JCCI) said the Union Budget has stopped short of announcing a financial stimulus for traders hit by lockdowns and sick industrial units. However, the JCCI welcomed the increase in spending in defence, agriculture and other sectors.
“The budget has ignored the business community in J&K which has been hit badly by the pandemic. There is no announcement for stakeholders of the tourism sector such as hoteliers and transporters. We are hoping the Lt Governor Manoj Sinha-led administration will announce a package for traders to revive the sick economy,” JCCI president Arun Gupta said.
Federation Chamber of Industries Kashmir (FCIK), another Valley-based amalgam of business leaders, said the fraternity was expecting a development package in the budget for the revival of J&K’s economy. FCIK President Shahid Kamili said the Finance Minister’s announcement on revamping of Credit Guarantee Trust for Micro and Small Enterprises needs marketing support in Jammu and Kashmir.
“On one hand, the unemployment rate in J&K has reached the highest in the country while the Centre has announced the creation of 60 lakh new jobs. When the small and medium industries don’t get marketing support, the additional financial impetus is pointless,” said Kamili.
Kashmir Traders and Manufacturers Federation, a Valley-based amalgam of traders, said Kashmir has recorded huge losses due to the intermittent security lockdowns since 2019 when the special status of Jammu and Kashmir was revoked and the erstwhile state was downgraded into two Union Territories.
“We have been raising the issue with the government consistently. The business fraternity was hopeful that the budget will allocate some financial impetus but no relief has been provided,” KTMF president Muhammad Yaseen Khan said.
All Kashmir Fruit Growers and Dealers Union (AKFGDU), the biggest amalgam of fruit farmers and traders in Kashmir, said there was “nothing” in the budget for the horticulture sector which has been hit by natural disasters and import of apples from Iran and other countries.
“Agriculture is the backbone of J&K’s economy and the horticulture sector generates more than Rs 10,000 crore in revenue. The import of Iranian apples has impacted the local produce badly. We had asked the government to tax the apple imports but nothing has been done in this regard,” he said.
Congress leader Kadfeen Choudhary on Tuesday has termed the Budget 2022 as yet another misad-venture to steer the country’s economy, terming it detrimental for the middle class. Kadfeen said that the budget speaks least about the creation of Jobs and there is no good news for the country’s middle class. The Congress leader said that as far as the allocation to Jammu and Kashmir is con-cerned, it is unfortunate that the people here have been asked to remain contended with mere to-kens. Kadfeen said that the central government must understand that Jammu and Kashmir is much more than Dal and Nigeen lakes and that there are people who are reeling under distress and de-serve the government’s attention, while joblessness in Jammu and Kashmir is witnessing an unprec-edented surge, the budget has looked the other way,he said.
Sunil Dimple president mission statehood Jammu Kashmir along with the traders, transporters, lead a strong protest demonstration against the budget and Burnt the copies of the disappointing union govt 2022-23 budget at janipur high court road in Jammu on Tuesday . .He further alleged that the budget failed to fulfill the promise of prime minister Narender Modi of providing two crore jobs every year to youths.He said the govt union budget has badly failed to stop the prices of vegetables, edible oils and the daily need items and the prices of everything has reached beyond the reach of the common man .
