Interim budget for J&K more than Pakistan's IMF grant
India has announced an interim Budget of Rs. 1.18 lakh crore for fiscal 2024-25 for the union territory of Jammu and Kashmir. This amount is around 4.5 times more than the amount Pakistan is seeking for its whole nation from the International Monetary Fund (IMF) to tackle its economic crisis. Finance Minister Nirmala Sitharaman presented the interim budget on the day Pakistan observed "Kashmir Solidarity Day." The budget proposal represents India's committment to J&K's economic development.
Why does this story matter?
J&K came under the Centre's rule in June 2018 after the Bharatiya Janata Party (BJP) and the Peoples Democratic Party (PDP) coalition government collapsed and the assembly was dissolved. Since then the Union government has been tabling the region's annual budget. In August 2019, the Centre revoked J&K's special status granted under Article 370 of the Constitution. Subsequently, the erstwhile state J&K was bifurcated and downgraded into two union territories, J&K and Ladakh, the latter without a legislative assembly.
Proposed allocations, economic growth
While announcing the budget allocations for J&K, Sitharaman said the interim budget envisages a fiscal deficit of Rs. 20,760 crore and a 7.5% growth in gross State domestic product (GSDP). The capital expenditure for the fiscal has been proposed at Rs. 38,566 crore, which is 14.64% of the GSDP, as per the interim Budget tabled by Sitharaman in Parliament, she said. The revenue receipts for the next fiscal stood at Rs. 97,861 crore.
'Path-breaking' measures, zero-tolerance against terrorism
Sitharaman credited the significant budget allocation to key reforms implemented in 2019 after the abrogation of Article 370. These reforms, she claimed, enabled the union territory administration to introduce "path-breaking" measures, such as decentralizing governance and promoting inclusive development. Sitharaman also emphasized the security forces' ongoing efforts in combating terrorism, leading to an improvement in the security situation in the UT. She said the Centre has adopted a zero-tolerance policy against terrorism.
IMF's bailout package for Pakistan
Meanwhile, the IMF has approved a $3 billion (approximately Rs. 24 thousand crore) bailout package for financially struggling Pakistan. A mission from the Washington-based global lender reviewed the country's economic performance during the first three months of the fiscal year - from July to September, 2023. In January, the IMF greenlit a $700 million (Rs. 5 thousand crore) loan tranche for Pakistan under the package after completing its first review of the country's economic reform program.
