JK’s liabilities swell to Rs 62,207 cr

Fiscal deficit touches Rs 8982 cr, up from Rs 2833 cr in 2011-12

MUKEET AKMALI
Srinagar, Publish Date: Jan 13 2018 11:53PM | Updated Date: Jan 13 2018 11:53PM
JK’s liabilities swell to Rs 62,207 crRepresentational Pic

Bulging expenditures and fat salary bills accumulated Jammu and Kashmir’s fiscal liabilities to Rs 62,207 crore in 2016-17 from Rs 55,354 crore in 2015-18; an increase of Rs 6853 crore, an official report has revealed.

As per economic survey report 2017, JK’s fiscal liabilities have witnessed staggering increase from Rs 40265 crore in 2012-13 to Rs 62,207 crore in 2016-17.

In 2013-14 fiscal liabilities were recorded at Rs 44673 crore, in 2014-15 it touched 48314 and in 2015 it was Rs 55,358 crore.

Fiscal deficit has touched Rs 8982 crore in 2016-17 from Rs 2883 crore in 2011-12. In last six years, the fiscal deficit has increased by Rs 6149 crore, the report highlights.

As per official data during 2011-12, fiscal deficit was recorded as Rs 2833 crore, 2012-13 Rs 2975 crore, 2013-14 Rs 4554 crore, 2014-15 Rs 5608 crore and 2015-16 Rs 8060 crore.

“The overall fiscal liability of the government increased from Rs 55358 crore to Rs 62207 crore ending March 2017. As a percentage of GSDP, the stock of accumulated fiscal liability decreased from 60.27 percent to 49.28 percent at end of 2016-17 reflecting a good sign towards progress related to debt sustainability,” the report mentions.

“The three fiscal parameters - revenue deficit, fiscal deficit and outstanding liability - indicates the extent of overall fiscal balance in the finances of the state government during the specified period. The nature of deficit is an indicator of the prudence of budgetary policy of the state government. Another useful measure of the deficit-base in a state’s fiscal policy is the State’s Own Deficit (SOD),” it adds.

“The major threat to fiscal balance is the revenue deficit exhibited during the FY 2015-16 which has reversed and 2016-17 has exhibited Revenue surplus of Rs 2166 crore. The fiscal deficit has reached to the level of Rs 8982 crore, primary deficit to Rs 4381 crore in the same year leading to more dependence on the market borrowings as the revenue deficit grants are fixed for a period of five years which are not subject to change during the course of the year from 2015-16,” the report mentions.