No dearth of money for development work, system need to be

Jammu and Kashmir Finance Minister Haseeb Drabu today said there is no dearth of money for development work but the problem is that the system does not have the "absorptive capacity to utilise the finances", asserting the budget presented by him for 2016-17 is aimed at setting the system right.
"There is no dearth of money, the problem is that the system does not have the absorptive capacity. I can give Rs 1,100 crore for (construction of) roads and buildings, but we only have 26 hot-mix plants and even if we make them work continuously day and night for 365 days, the total money that can be spent is Rs 600 crore. So, what will you do by taking Rs 1,100 crore?" Drabu said replying to the general discussion on budget proposals in the Legislative Council.

The finance minister said through the budget he has tried to build systems which would serve his successors as well as the government and the society.
"I have tried, in the budget, to build systems which will not serve only me, but serve the successors whoever they may be. It will serve the government and...The society," he said.
Drabu said the only way for the Jammu and Kashmir economy to grow was public investment.
"There is no private investment here and local investment is too little. There is only one rule for the next five years. I will say this openly. The only way for J-K economy to grow is public investment," he said.

"We spent Rs 20,000 crore. Our biggest tragedy is that where we have to spend Re one on developmental work, we spend Rs 2.5 for spending that Re one. This is the biggest problem. The only way to restore the balance is by increasing capital expenditure," he said.

Hitting out at opposition National Conference (NC) and Congress, Drabu said "everyone is ready to take, but not to give".
"You said toll tax has been increased which will lead to increase in prices. You want (implementation of) Seventh Pay Commission but do you realise where will the money come from? It is easy to say that it (seventh pay commission) should be given. Where from will this money come?" he asked.

"You are pained if there is even a one per cent increase in the toll tax. Everyone is ready to take, but not to give. How will the state be run? We have to get money from somewhere," he said.
He asked the legislators from the opposition parties to not try to score points over the other.
"These days NC is raising slogans of autonomy. Based on what? At least have a semblance of financial autonomy first. You are reacting to this (increase in toll tax). There has been no hike in it in the last seven years.
Terming the issue of 60,000 casual labourers and daily

wagers as a "social problem", the finance minister said the budget would try to put in place a system by virtue of which they be given salary from the wage bill.
"You (opposition) engaged casual labourers but did not give them salary, otherwise you would have been caught... The system was that you will give employment but orders will not be issued," he said and accused the opposition of "playing with the lives" of millions of people while in government.
"You engaged 60,000 people in this way but they have no claim over it. If they approach the court, they will be told that since you do not have salary, you are not employed... You have destroyed 60,000 families," Drabu charged.

"I am not talking of finance here, it is not a finance issue... It is a social problem," he said.
"I am not saying stop it, I am saying give them money from the wages and I will manage that. If the revenue expenditure increases, then be it, but some system should be in place. That is the core of the budget," he said.
Reacting to the uproar, even from the treasury benches, over tax on aviation turbine fuel (ATF), the finance minister said there was no relation of ATF rates with airfares and the charge that it would impact tourism in the state was wrong.

"Many legislators have spoken about this. As I said yesterday that this is not a Tagore Hall but Assembly. It has the sanctity. You should come prepared here. You have talked about (tax on) aviation fuel and that it will impact tourism. How? The tax is 25 per cent in Delhi also.
"I had last year rolled it back thinking two things will happen. One that they will do re-fuelling here and two that airfare will be lessened. But nothing happened. It has no relation with airfares," he said.
Drabu said the airlines "do not re-fuel here and the airfare did not come down last year".

On the issue of waiving of Kisan Credit Card loans, the finance minister said he has made provisions for the same.
"I have mentioned in my (budget) speech as to why I could not do it. Because SLBC (State Level Bankers Committee) did not provide the data. I have made the provisions, I shall do it. There are no two ways about it," he said.
"We will make a consolidated list of BPL families in six months... The mindset here is that people demand to be included in BPL list when the world is going forward. We will try to take forward the BPL into APL and then more forward, but till they are in BPL, we will support them. But it takes time and money," he said.

He said Jammu and Kashmir got economic packages from the Centre on only two occasions in the last 60 years -- first when Mufti Mohammad Sayeed was the chief minister in 2002 and Manmohan Singh was the Prime Minister and now under Prime Minister Narendra Modi -- and alleged that the NC "did not have either the intelligence or the capacity to get a package".