JAMMU & KASHMIR BUDGET BUGLE

Jammu and Kashmir Finance Minister Haseeb Drabu presented the 2018-19 Budget for the state on January 11. Gross State Domestic Product (GSDP) is estimated to be ~1166.37 billion or 6.9 per cent higher than the 2017-18 estimate.

Total expenditure for 2018-19 is estimated to be ~803.13 billion, a 15.2 per cent increase over the revised estimates of 2017-18. In 2017-18, there was ~97.44 billion (12.3 per cent) decrease in expenditure in the revised estimates.

Total receipts (excluding borrowings) are estimated to be ~711.80 billion — 14.4 per cent higher than the revised estimates of 2017-18, when receipts fell short of the Budget estimate by ~35.53 billion.

Revenue surplus is targeted at ~130.84 billion, or 8.3 per cent of GSDP. Fiscal deficit is targeted at ~96.73 billion (6.1 per cent of GSDP).

Power, home, education and health and medical education departments saw a significant increase in allocations.

Policy highlights

Uniform employment code: The Code will provide a framework for the terms of employment and service of all workers, except domestic workers and agricultural labourers. A multi-disciplinary committee will be set up to frame Jammu and Kashmir Employment Code.

State Finance Commission: It will recommend rules and regulations for panchayats and municipalities to receive funds. Previously, such a

panel was constituted in 2011.

Chief Minister's Business Interest Relief Scheme:

The government will provide one-third of the interest payments of borrowers with restructured

accounts approved by the Reserve Bank of India; ~2 billion has been allocated towards this scheme, operative for two years from January 2018. —