J&K releases maiden Economic Survey

The Jammu and Kashmir government today released the maiden Economic Survey, which outlines ways to rebuild the state's economy, whose growth was stunted by 17 years of militancy.

"The state is facing a huge infrastructural deficit, spanning both economic and social sectors and needs to be taken care of on priority," Finance and Planning Minister Hameed Karra said releasing document that assesses the state of the economy.

The economy exhibits a high degree of volatility and suffers from limited capacity in the public and private sectors, he said, adding that Jammu and Kashmir has a very limited access to national capital markets.

The nearly two decades of conflict and civil strife has dented governance institutions, weakened public expenditure management systems and increased transaction costs making it difficult to engender and monitor development, he said.

This situation has a bearing on the type, timing and sequencing of development and reform initiatives.

The Economic Survey document noted that there was high unemployment, growing divide between the rich and the poor and a crumbling social infrastructure including fewer public health centres.

Karra said fiscal policy and economic policy need to be dealt with separately to achieve holistic development and growth.

Elaborating on the highlights of the economic survey, he said as against the annual national economic growth of 7.0 per cent during the first four years of the 10th plan, the state grew by only 5.5 per cent.

During the first two years of the 10th Plan, the economy registered about 5 per cent growth, but it is estimated to achieve 5.75 per cent annual average growth during the last three years of the plan period.

He said the Gross State Domestic Product (GSDP) is estimated to be Rs 25,050 crore for the year 2006-07. The per capita income is Rs 17,174 per annum, much below the national average of Rs 25,907.

The unemployment rate in the state as estimated by National Sample Survey Organisation (NSSO) stands at 4.21 per cent. Much higher than the national level of 3.09 per cent, he added.

The survey also shows that while absolute poverty has been declining, relative inequality seems to have increased, implying that the gap between the rich and the poor is widening.

He said the case of communications is no different. Number of phones per 100 of population in the State is 7.76 (2005-06) as against the relative tele-density in the country at 13.57 per cent.

On the social infrastructure side, Karra said things look even bleaker. As of march 2006, one medical institution served 3,127 people and there were only 111 hospital beds and 48 doctors available per lakh of population.

He said the literacy rate, as per 2001 census was 55.52 per cent as against 64.84 per cent at all India level. The female literacy rate was recorded at 43.0 per cent for the state as compared to 53.67 per cent for the country.

He said of the State's 11,184 habitations, only 71 per cent fully receive potable water supply.