Huge Money Flows Revitalize Valley Markets

7 October 2008

Srinagar: The increased volume of money flow and transactions around the time of Eid rejuvenated the Valley markets that were under stress for past three months due to persistent shutdowns and curfews. Experts say that in the backdrop of land controversy which was followed by the enforced economic blockade on the Valley, the markets here underwent a severe jolt causing immense business losses, besides dwindling the volume of transactions. However, around the time of Eid normal – but large – money flows into the market – released by government in the shape of salaries and clearance of long-pending liabilities, release of advances by the banks, huge withdrawals by the people – helped the markets to revive. According to official figures the finance department released through its treasuries in the state from Sept 25 a whopping Rs 2308.57 crores. The pay day was preponed by the government on account of Eid. Besides, the government cleared bills which were pending for want of money at the treasuries. Experts said the more money coming into the market enhanced the purchasing power of the people which in turn gave a push to the markets. Many traders confirmed to Greater Kashmir that they were not expecting such huge sales as they had made on this Eid, which experts attribute to the great money flows into the market. Over past few months due to the shutdowns and curfews the money flow into the market had dwindled. Experts said the government on account salaries to its employees released not less than Rs 350 crore for the month of September. Besides the money released by the government, huge amounts came into the market from the banks which were either withdrawn by the people from the accounts, or taken as advances. The boom of withdrawals was so high that cash around Rs 13 crores was withdrawn from the ATMs of the JK Bank on Monday alone. “Another Rs 10 crores would have been withdrawn from ATMs of other public and private sector banks operating in the Valley,” said a banker. Finance Department released an additional amount of Rs 526.07 crore on Sept, 25 and 27 against different object heads of expenditure. Bills and cheques pertaining to Salary, Pension, Wages, Leave salary, Ex-gratia, Relief Contractor Firms, Material & Supplies, SHG, Corporation, CDF, Drug Diet, Land Compensation and others were cleared up to 27.09.2008.