The Hindu : J&K to defer annual budget

Online edition of India's National Newspaper
Wednesday, Feb 19, 2003

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National

J&K to defer annual budget

By Shujaat Bukhari

JAMMU FEB. 18. The People's Democratic Party (PDP)-led coalition Government in Jammu and Kashmir is on way to creating a history of sorts by not presenting the annual budget 2003-04 in the budget session of the Assembly beginning on February 24. Instead, it will take a Vote on Accounts (VoA) for three months. It will also come out with a ``white paper'' on the fiscal health of the State.

Highly-placed sources told The Hindu that the postponement was partly due to the Government's efforts aimed at better macro-management of its finances and fiscal reforms. One of the main reasons was the ``inability'' of the Planning Commission to determine the size of the State's Annual Plan.

When contacted, the Minister for Finance and Planning, Muzaffar Hussain Beig, confirmed the move to defer the budget. ``We are planning a white paper'' on the financial scenario of the State which is likely to be presented during the session and will try to find a mechanism to put it back on the rails,'' he told The Hindu.

Sources said the Government's negotiations with the Planning Commission and the Reserve Bank were in an advanced stage and the State might be able to overcome its financial problems in the next couple of months. The Government was contemplating crucial legislation during the session on taxation and fiscal management.

The regular budget would be presented in an extended session after the Plan size for the State was decided and an alternate mechanism for financial expenditure was worked out.

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