Srinagar, Mar 14 (KNO): Jammu & Kashmir government’s liabilities have swelled over Rs one lakh crore, showing an increasing loan burden on the Union Territory’s finances.
With Central assistance and Union Territory’s own resources-both tax and non-tax revenue- not adequate to meet its annual budgetary requirements, the UT government generally goes for borrowings.
According to J&K's budget documents tabled in the Parliament on Monday, the debt stock at the end of the financial year 2021-22 was at Rs 1,014,162 crore.
The break-up of liabilities shows that the total public debt against the J&K government is Rs 62395 crore. Of which Rs 61212 crore is internal debt and Rs 1183 crore are loans and advances from the Central government, the documents lying with news agency—Kashmir News Observer (KNO) lay bare.
The remaining liabilities include Rs insurance and pension funds (Rs 1191 crore), provident funds (Rs 26521 crore) and other liabilities (Rs 11335 crore).
The growing debt is a matter of concern and highlights the fact that revenue generation continues to remain a problem. It also raises questions on how the J&K government will be able to liquidate its debt of Rs one lakh crore.
In 2010-11, the total liabilities against the J&K government were Rs 29972 crore.
During the next financial year, the J&K government plans to raise Rs 10128 crore from market borrowings while it is estimated to spend Rs 8099 crore for repayment of debt—(KNO)