Both the houses of Jammu and Kashmir legislature today passed a bill to amend the Jammu and Kashmir State Fiscal Responsibility and Budget Management (FRBM) Act- 2006.
The bill envisages maintaining the fiscal deficit to an annual limit of three per cent of GSDP for 2015-16 to 2019-20 with a flexibility of 0.25 per cent over and above the limit for the same period.
It was moved by the state Finance Minister Haseeb A Drabu in both the houses and passed by voice vote.
The amendment bill envisages the use of capital receipts for creation and maintenance of productive assets and the borrowing over and above existing fiscal deficit limit for the purpose of clearing past liabilities or creating fresh assets with a bearing on consolidated fund of the state.
The FRBM Act 2006 provides for the Government to exercise prudence in fiscal management and fiscal stability by adopting progressive financial management practices consistent with fiscal sustainability, greater transparency in fiscal operation and conduct of fiscal policy in a medium term framework.
Drabu had made an announcement in the budget speech 2015 -16 and proposed a change in FRBM Act 2006 from year 2015-16 to ensure that over the next three years, it is mandated that borrowings are used only to finance the creation of capital assets.
The legislative Assembly also passed with a voice vote four bills - to establish J&K Higher Education Council, to amend Ayurvedic and Unani Practitioners Act 1959, to amend Salaries, Allowances of Members of JK Legislature Act-1960 and for Protection, Conservation and Development of Fisheries.
Education minister Syed Mohammad Altaf Bukhari moved the bill to provide for the Establishment and Constitution of State Higher Education Council for enforcing, planning, monitoring, evaluation and quality assurance in universities and other higher educational institutions of the state.
Meanwhile, Veeri, on behalf of Chief Minister Mehbooba Mufti, introduced "a bill to amend the Jammu and Kashmir Public Property (Prevention of Damage) Act, 1985" in the Legislative Assembly.
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