J&K receives revenue worth Rs 35,581 cr for 2023-24

In the annual budget presented to Parliament for the fiscal year 2023-24, Finance Minister Nirmala Sitharaman announced revenue grants of Rs 35,581 crore for Jammu and Kashmir and Rs 59.58 billion for the Union Territory of Ladakh.

Significantly, the Central grants in the Revised Estimates for the current fiscal year 2022-23 have been increased by approximately Rs 90 billion.

The central assistance for the fiscal year 2023-24 is the same as it was in the current fiscal year 2022-23. However, if the Revised Estimates for the current year are used, the financial assistance for next year will be reduced by Rs 90 billion, but it may increase if the estimates are revised again later.

The Department of Higher Education, Jammu and Kashmir, which was allocated Rs 2 billion for the current fiscal year 2022-23, has received no funding for the next fiscal year 2023-24. The Special Scholarship Scheme has been merged with the PM-USP Yojana, so there will be no grants next year.

Power projects in Jammu and Kashmir have received significant funding to expedite construction, and industrial development in the UTs of J&K and Ladakh has been included in the annual budget.

Jammu and Kashmir has been allocated Rs 355.81 billion in revenue grants for the fiscal year 2023-24, according to the budget. The UT of Ladakh received grants amounting Rs 5958 crore, including Rs 28.08 billion for revenue and Rs 31.49 billion for capital expenditure.

Grants will be made to both Union Territories by the Union Ministry of Home Affairs.

For the first time, Ladakh has been granted Rs 973 million for the Industrial Development of Ladakh Scheme, 2022 for the fiscal year 2023-24. Jammu and Kashmir will receive Rs 500 million under the Industrial Development Scheme of 2017, as well as some funds under the Package for Special Category States for J&K, Himachal Pradesh, and Uttarakhand.

“The new Central Sector Scheme for Industrial Development of Jammu and Kashmir shall be effective up to 31.03.2037 with total outlay of Rs 284 billion and will provide incentives like capital investment, capital interest subvention, Goods and Service Tax Linked Incentive and Working Capital Interest Subvention.

Similarly, the new Central Scheme for Industrial Development of the Ladakh UT will run from 2023 to 2024, with a total investment of Rs 3500 crore. All incentives mentioned in the J&K Industrial Scheme will be applicable during the scheme period.

The Union Ministry of Home Affairs has proposed Rs 1.3 billion in revenue grants for the 624 MW Kiru Hydro Electric Project (HEP), Rs 476.44 crore in revenue grants for the 800 MW Ratle HEP, Rs 5 billion in revenue grants for the Jhelum Tawi Flood Recovery Project, and Rs 171.23 crore in revenue grants for the 540 MW KWR HEP.

Other grants from the total fund to Jammu and Kashmir include Rs 339.23 billion for Central Assistants to UT and Rs 2.79 billion for Disaster Response Fund.

The budget made special mention of improving sports facilities in Jammu and Kashmir, stating that this programme is an important tool for promoting peace and development.

“Sports infrastructure and sports facilities in Jammu and Kashmir will be upgraded and developed under this scheme,” the budget document said.

Jammu and Kashmir Light Infantry has been proposed for Rs 17.97 billion by the Ministry of Defence. The Jammu and Kashmir Light Infantry, previously known as the J&K militia, is now a full-fledged regiment of the Indian Army with 15 battalions as well as a Regimental Centre and Record Office.

The Border Area Development Programme (BADP), a Centrally Sponsored Scheme that could benefit both Jammu and Kashmir and Ladakh due to their large number of border villages, has been budgeted for Rs 6 billion.

The MHA has also set aside Rs 3.1 billion for relief and rehabilitation of migrants and repatriates, Rs 50 million for Ladakh, and Rs 110 million for helicopter services in J&K and Himachal Pradesh.

“The provision is for subsidised helicopter services in Jammu and Kashmir and Himachal Pradesh to provide connectivity to remote areas,” the budget document said.