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Bankrupt J&K steps up measures to cut expenditure

Mukhtar Ahmad in Srinagar

After landing in a debt trap and tottering on the edge of financial bankruptcy, the Jammu and Kashmir government today announced various measures aimed at saving Rs 500 million annually.

These measures were announced by Chief Minister Farooq Abdullah while replying to the discussions on the demand of grant for the departments under his charge in Jammu and Kashmir assembly.

"The saving would be in addition to Rs 1 billion already announced in the Budget. The measures announced relate to cut in the expenditure on vehicles and telephones used by the ministers, senior officers and other functionaries in the government," Abdullah said.

All ministers shall be entitled to only one vehicle and one staff car. This, he said, shall also apply to all senior officers entitled to staff car. "Government vehicles shall be used only for official purposes by ministers, secretaries and heads of departments up to a maximum of 600 kms per month excluding tours outside the headquarters."

Regarding security, he added, "If for security reasons family members are required to use the official vehicle they shall pay charges of Rs 500 per month for this facility. No official transport shall be used by the officers not entitled to this."

Abdullah said that no officer below the rank of the head of department will be entitled to long distance telephone facility. Residential telephone bills shall not exceed Rs 1,500 per month for HODs, Rs 2,000 per month for secretaries and Rs 2,500 per month for ministers.

He said there shall be no air travel in executive class. Those desirous of travelling in this class will have to pay out of their own pockets. The chief minister said that an exercise is being undetaken to "consider reduction in all senior level posts with a view to downsize the government".

The state government has already announced drastic austerity measures in departmental expenditure. These measures, officials said, have been ordered in view of the continuing tight resources position of the troubled state.

The finance Minister, Mohammad Shafi, said that the state is on the verge of financial bankruptcy. The growth rate has dropped from 8.7 per cent in the Eighties to about 1.9 per cent while the per capita income has slipped to 23rd position from sixth place it had amongst the states of the Union. The fiscal deficit which was Rs 575 million in 1989-90 has gone up to Rs 6.404 billion by March 1997.

The budget presented recently has led to massive protests and opposition parties have termed it "anti-people". A complete general strike was observed in the Kashmir Valley today against the proposed taxes in the Budget. Traders and manufacturers joined by state employees and the bar association have formed a joint front to force the government to roll back the taxes.

The chief minister however says that mopping up of additional resources is important for self reliance.

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Jammu and Kashmir