Union Finance Minister Nirmala Sitharaman is scheduled to lay the statements of the estimated receipts and expenditure for the financial year 2024-25 of the Union territory of Jammu and Kashmir (with Legislature) in the Lok Sabha today. She will also present the statement under the Fiscal Responsibility and Budget Management Act, 2006 for the UT.
The budget estimates for the UT of J&K are expected to reflect the priorities and policies of the central government, which took over the administration of the erstwhile state after its bifurcation into two union territories in 2019. The budget is likely to focus on boosting the infrastructure, tourism, agriculture, education, health and security sectors in the region, which has witnessed several developmental initiatives and projects since the revocation of Article 370 and the reorganisation of the state.
The statement under the FRBM Act, 2006 will indicate the fiscal targets and indicators for the UT of J&K, such as the revenue deficit, fiscal deficit, debt and guarantees. The FRBM Act, 2006 provides a legal framework for fiscal prudence, transparency and sustainability in the management of public finances. The Act mandates the government to reduce the fiscal deficit to 3% of the gross state domestic product (GSDP) and eliminate the revenue deficit by 2026.
The Finance Minister had presented the Union Budget 2024-25 on February 1, in which she had announced several measures to revive the economy, which was hit hard by the COVID-19 pandemic and the subsequent lockdowns. The budget had projected a fiscal deficit of 6.8% of GDP for 2021-22, down from the revised estimate of 9.5% in 2020-21. The budget had also proposed to increase the capital expenditure by 34.5% to Rs 5.54 lakh crore and provide Rs 75,000 crore as interest-free loan for 50 years to support reforms by states
