J&K Budget 2018-19

14/01/2018

Finance Minister Dr Haseeb Drabu presented Rs 80,313 crores worth general budget for Jammu and Kashmir for the Financial Year 2018-19 in which he gave major boost to industry and tourism sectors, announced series of sops for around 4.5 lakh Government employees, abolished Lower Munda and Heerpur Toll Posts, waived off toll on some items and exempted non-commercial vehicles from toll while raising it marginally on other items at Lakhanpur and also approved amnesty on payment of arrears and taxes in some sectors besides extending other benefits to different sections including youths. In his 100 minutes speech on general budget and Panchayat budget, which was heard with rapt attention by Chief Minister Mehbooba Mufti, Opposition leader Omar Abdullah and majority of his Cabinet colleagues and legislators, Drabu said out of Rs 80,313 crore worth budget, Rs 29,128 crore will be the capital spending, the highest in the economy of Jammu and Kashmir. He proposed to raise Rs 9,000 crore from the market borrowings, Rs 331 crore higher than last year with which the Government would finance an additional capital expenditure of Rs 3282 crore. In the Legislative Council, Minister of State for Finance, Ajay Nanda presented the general and Panchayat budgets.
Dr Drabu made an initial provision of Rs 10 crore for facilitating the setting up of Rural Industrial Estates across the State. On crucial issue of toll being charged at Lakhanpur despite imposition of Goods and Services Tax (GST) in J&K like other parts of the country, the Finance Minister said imposition of toll was well within the legislative competence of the State Government as only Entry Tax and Octroi have been subsumed in the GST. However, he announced exemption of 12 items from the toll including vegetables, medicines, sugar, salt, tea, soaps/detergents, sanitary items, water coconut, wheat seeds, tree spray oil, newsprint and jiggery (Gur). On all other products manufactured by the local industry, toll will continue to be levied. He proposed abolition of basic toll of Rs 80 on all non-commercial and private Light Motor Vehicles at Lakhanpur and Lower Munda. He also abolished toll on export of gypsum. While there was no toll on export of apples, he abolished toll on export of all types of fruits produced within the State. This, he said, will cause the State a revenue loss of Rs 100 crores. At the same time, he raised toll from existing slab of Rs 80 per quintal to Rs 100 per quintal and included wheat bran in the slab. Announcing abolition of Lower Munda and Heerpur Toll Posts, which were giving the State annual toll revenue of Rs 22 crore, Drabu said this will create single unified market within Jammu and Kashmir. He proposed imposition of additional tax on such goods, having destination of sale outside the State but being brought for consumption in the State, equivalent to the rate of State Goods and Services Tax. This, he said, will protect interests of local traders. This will be effective from April 1, 2018. He proposed to raise the toll on tobacco, in all forms from existing Rs 290 per quintal to Rs 400 per quintal. The Finance Minister announced slew of incentives and exemption for the industries. Announcing that the Government has decided to treat hotels and resorts at par with the industries so far as payment of power tariff is concerned, he said from April 1, they will now have to pay the same power tariff as is applicable to the industries. Reiterating that the Government would implement 7th Pay Commission recommendations from April 1, 2018, Dr Drabu said the report will be effective from January 1, 2016. He announced release of one per cent Dearness Allowance due to the employees from July 1, 2017. He added that cadre review issues of the Secretariat employees will also be appropriately addressed. He recalled that qualifying service for full pension has already been reduced from 28 years to 20 years.

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