The Lok Sabha on Tuesday passed the over ₹1.18 lakh crore budget for the Union Territory of Jammu and Kashmir for 2023-24 amid din with 35% capital expenditure at ₹41,491 crore to be spent on development and infrastructure.
The budget 2023-24 for Jammu and Kashmir shall again cross ₹1 lakh crore mark, an indicator of our commitment to make Jammu and Kashmir a model of development,” finance minister Nirmala Sitharaman said in a written speech that was tabled on March 13.
The Union Territory has generated a revenue surplus, which will be invested in infrastructure and development work, Sitharaman said. “The capital component of the budget has increased substantially. The expected revenue receipts are ₹1,06,061 crore, whereas revenue expenditure is expected to be ₹77,009 crore, thereby making available revenue surplus for capital expenditure to the tune of ₹29,052 crore,” she said.
One of the priorities of the J&K budget was to double the gross state domestic product (GSDP) within five years. “The economy is on right track and government is focusing on equitable growth in all the sectors of the economy. The economy is expected to grow at 10% and there has been significant growth in collections under GST (goods and services tax), Excise and Stamp Duty,” she said. J&K’s GST collections, a weathervane of economic health, was ₹6,666.04 crore up to February, a year-on-year growth of 14.64%.
Sitharaman’s approach is in lines with her federal budget, which also focused on capital expenditure to boost growth. Presented in Parliament on February 1, it recognised capital investment “as driver of growth and jobs” and raised the outlay by 33% to ₹10 lakh crore. Together with grants-in-aid to states, the effective capital expenditure is estimated at ₹13.7 lakh crore, which will be 4.5% of GDP.
The central government has been raising capital expenditure in every budget since 2020 to spur the economy. The second advance estimates for 2022-23 released by National Statistical Office on February 28 retained the overall annual growth at 7%. The Economic Survey on January 31 projected India’s GDP growth at 6.5% in real terms for 2023-24, with a broader range of 6-6.8% depending on downside and upside risks.
Besides doubling the territory’s GDP in five years, other eight priorities of the 2023-24 J&K budget include good governance, strengthening grassroots democracy, promoting sustainable agriculture, facilitating investment and industrial growth, employment generation, accelerated development and inclusive growth, women empowerment and social inclusion.
The improved law and order situation in J&K has seen “a good flow” of tourists in the season, Sitharaman said, adding that over 18.8 million tourists visited J&K in 2022-23 up to December.