Financial Rot: JK Begins To Assess Liabilities
16 May 2015
: Faced by unprecedented financial problems, the Jammu and Kashmir government has undertaken an exercise to work out the details of liabilities created by different departments in the past. Highly placed sources told Greater Kashmir that State's Planning & Development Department has shot a letter (PD-2011-2012- Coord-101-01-A,dated 13-05-2015) to all the administrative departments to come up with details of the liabilities. The exercise has been taken up on the directions of Finance Minister, Dr Hasseeb Drabu. In the communiquÃ©, the P&DD has asked the departments to submit category-wise details of the liabilities pending against them. Talking to Greater Kashmir, Dr Drabu said the data is being collected to classify the liabilities based on their age profile, authorization and budgetary approval. 'There are different types of liabilities. We have some liabilities where there is proper approval and budgetary allocation. Then there are some other liabilities where schemes have been sanctioned with budgetary allocation but estimates are more than budget,' he said, adding, 'We also want to arrive at the quantum of liabilities incurred by the departments without any approval or budgetary allocation.' He said the government will work out a plan to meet the liabilities from the current resources. 'Once the data is collected and classifying (of liabilities) is done, we will work out a plan to meet the liabilities in systematic manner,' he said. Drabu claimed that liabilities having proper approval and budgetary allocation would be cleared within eight to 10 months. 'We are releasing some plan funds and 25 percent of that will go to meet the liabilities,' he said. Earlier, Drabu had informed the Legislative Assembly that the PDP-BJP government has inherited liability of Rs 9000 crore from the previous government. On April 27, Chief Minister Mufti Muhammad Sayed also said that the previous regime has left over Rs 9000 crore liability, making management of finances a 'big challenge' for the present dispensation. He had also said the Centre's financial help would pour in 'only when the State is able to build its own finances to some extent.'