Jammu Kashmir Budget 2018 Highlights: 10 interesting things every common man MUST KNOW in Finance Minister Haseeb Drabu’s State Budget

Finance Minister Haseeb Drabu presented the state Budget for the year 2018-19, his fourth budget in the Jammu and Kashmir legislative assembly. 

Here are 10 things that a common man must know about the Govt.  of Jammu & Kashmir budget 2018:

1. Fiscal deficit previously estimated at around 9.5 per cent has actually turned out to be around 5.7 per cent.
2.  The minimum wages of unskilled workers were raised from Rs. 150 to Rs. 225, while those of skilled labour to Rs. 350 from Rs. 225. A new category of highly skilled worker was introduced and Rs. 400 was fixed as the minimum wage.
3. Announcement of release of 1 per cent Dearness Allowance due to the employees from 1st July 2017.
4. Implement 7th Pay Commission Recommendations from April 1, 2018, which will be effective from 1st January, 2016.
5. Unmarried daughters of the employees, who were hitherto not entitled to receive pension, have now been made eligible to receive pension once the employee and his/her spouse is no more.
6. Government has increased the Personal Accidental Insurance from Rs.5.00 lakh to Rs.10.00 lakhs.
7. Government will consider providing alternate incentive in lieu of CST to the industrial units in the State.
8. Propose to grant waiver of penalty and interest on arrears of tax in respect of all the dealers registered under the provisions of J&K Value Added Tax, 2005 and J&K General Sales Tax Act, 1962.
9. Have decided to waive off interest and penalty on all the power arrears owed to the Government by the industrialists and hoteliers and tourist resort owners.
10. Education loans available from banks have the repayments deferred till completion of course, the interest during the moratorium period is back-breaking for most of the students.

    Read also: Eight things to know about Jammu & Kashmir from Economic Survey 2017

    Here are the highlights:
    ➡ Fiscal deficit previously estimated at around 9.5 per cent has actually turned out to be around 5.7 per cent.
    ➡ The minimum wages of unskilled workers were raised from Rs. 150 to Rs. 225, while those of skilled labour to Rs. 350 from Rs. 225. A new category of highly skilled worker was introduced and Rs. 400 was fixed as the minimum wage.
    ➡ The strict discipline of no re-appropriation after December 31st 2017 has resulted in more than 50 per cent of the outlays being spent by December 31st, 2017.
    ➡ I am providing Rs 5 crore each to the Handicraft Development and Handloom Development Corporations for raw material and inventory upgradation.
    ➡ SRTC is up for focussed attention and in the course of this year, it shall be our endeavour to strengthen its balance sheet and clear off its liabilities before showcasing it for a public-private partnership while retaining majority control.
    ➡ I am announcing release of 1 per cent Dearness Allowance due to the employees from 1st July 2017.
    ➡ I am committed to implement 7th Pay Commission Recommendations from April 1, 2018, which will be effective from 1st January, 2016.
    ➡ The Government recently reduced the eligibility for full pension from 33 years of qualifying service to 20 years of qualifying service, benefitting more than half of the number of employees on the rolls.
    ➡ Unmarried daughters of the employees, who were hitherto not entitled to receive pension, have now been made eligible to receive pension once the employee and his/her spouse is no more.
    ➡ I propose to enhance the Deposit Linked Insurance of GP Fund subscribers from Rs.10 lakh to Rs.50 lakh. Similar Scheme shall be framed for the employees covered under NPS.
    ➡ Government has increased the Personal Accidental Insurance from Rs.5.00 lakh to Rs.10.00 lakhs.
    ➡ I have worked out an “Assured Career Progression Scheme” for all the Gazetted cadres of engineering departments.
    ➡ I have worked out an “Assured Career Progression Scheme” for all the Gazetted cadres of engineering departments.
    ➡ I propose to extend benefit of Assured Career Progression to other technical cadres like Agriculture, Horticulture, Animal & Sheep Husbandry etc.
    ➡ Government will consider providing alternate incentive in lieu of CST to the industrial units in the State.
    The State Government shall also provide freight subsidy to the industrial units located in the State and transporting their manufactured goods beyond 1000 kilometres outside the state.
    The State Government shall make available refund of SGST to all the industrial units, which were hitherto eligible for VAT exemption.
    I have decided to treat hotels and resorts at par with the industries as far as payment of power tariff is concerned. From 1st April, 2018, they will now have to pay the same power tariff as is applicable to the Industries.
    I have decided to rollout a “CM’s Business Interest Relief Scheme”. For all the RBI approved restructured accounts, the Government will contribute one third of the total interest payment of all these borrowers.
    I propose to grant one time waiver of Rs. 147.23 lakh on soft loans provided under erstwhile Prime Minister’s Package in respect of 19 Houseboat owners, who had taken such loans from Banks other than J&K Bank and SBI.
    I propose to grant waiver of penalty and interest on arrears of tax in respect of all the dealers registered under the provisions of J&K Value Added Tax, 2005 and J&K General Sales Tax Act, 1962.
    I have decided to waive off interest and penalty on all the power arrears owed to the Government by the industrialists and hoteliers and tourist resort owners.
    Under Amnesty Scheme for transport sector, I am waiving off interest and penalty on past arrears of token and passenger tax from 1st July, 2016 to 31st March, 2017.
    Education loans available from banks have the repayments deferred till completion of course, the interest during the moratorium period is back-breaking for most of the students.
    I propose that more trades having entry qualification as 8th pass, both under NCVT/SCVT norms, be introduced.
    I propose every transgender shall be treated as living under BPL unless indicated otherwise.
    I also propose, free life and medical insurance cover and a monthly sustenance pension on the pattern of old age pension scheme for all transgender people above the age of 60 who are registered with the social welfare department.
    I propose to support the creation of a Common Facility Centre for Cricket Bat Industry at Sethar, Anantnag by making an attractive public-private partnership offer.
    I have decided to facilitate setting up of walnut processing units in the private sector through an enabling interest subvention scheme.
    We had estimated unfunded resource gap of over Rs. 3,000 cr. But we have surplus of over Rs. 1,300 crore.Fiscal deficit, was estimated at around 9.5% but has actually turned out to be around 5.7%; an improvement of nearly 400 basis points. This is unprecedented.
    Revised estimates for the current year are much better than the estimates presented last year! Tax revenues were estimated to be Rs. 9,931 crore. These have been exceeded & in the process, we have crossed the Rs.10,000 crore mark of own tax collection.
    Providing regular engagement for the casual, adhoc & others is more about ability to take socially relevant & meaningful decisions on the back of a better managed expenditure system. Good finance is not an end in itself; it is a means to a social and humanitarian end
    I propose a small initiative of setting up of a community based marketing network to encourage saffron growers to go back to the traditional system of cultivation, for which I am earmarking Rs. 5 crore.
    I propose to set aside a sum of Rs.25.00 crore to finance orchard re-plantation/ high density plantation initiative.
    In the interim, till scheme to facilitate private players to establish more CA stores in the State is designed & operationalised, a scheme for hiring of CA stores in areas adjacent to NCR by horticulture dept for use of apple growers of state
    I propose setting up of a J&K Renewal Energy Corporation which will catalyze the development of renewable energy resources.
    I propose a capital infusion of Rs. 255 crore in Anantnag Central Cooperative Bank, Baramulla Central Cooperative Bank, and Jammu Central Cooperative Bank.
    I have decided to set up a Disaster Mitigation Fund with an initial corpus of Rs. 10.00 crore.
    Government is required to constitute a State Finance Commission in terms of the Jammu and Kashmir State Finance Commission for Panchayats and Municipalities Act, 2011.
    A committee of officers and professionals in the area of taxation and industry has been constituted to work out the framework for bringing real estate, electricity, alcohol and Petroleum a J&K GST.
    I am very keen to bring electricity under ambit of our GST. The reason being that under GST Input Tax Credit can be availed for electricity. This will boost the industrial sector and also encourage investment in power projects in the State.
    When I took over as finance minister, we had liabilities of more than Rs. 11,000 crores. Today, the departmental liabilities have come down to Rs. 600 crore or so of works done and power purchase liabilities have been reduced to a little more than Rs. 3,000 crore
    Govt has received excellent cooperation from employees. There has never been a situation of discord between us. To express my gratitude to all the employees, I am announcing release of 1 per cent Dearness Allowance due to the employees from 1st July, 2017
    Pay Committee constituted to recommend the revised pay structures for the State Government employees shall also, side by side, examine the various anomalies in different departments and try to address them during the course of implementation of 7th Pay Revision
    ➡ Pay Committee constituted to recommend the revised pay structures for the State Government employees shall also, side by side, examine the various anomalies in different departments and try to address them during the course of implementation of 7th Pay Revision
    ➡ JK’s Accredited journalists to be covered under Mediclaim Group Insurance Scheme
    ➡ I have decided to do away with toll on vegetables, medicines, sugar, salt, tea, soaps/detergents, sanitary items, water coconut, wheat seeds, tree spray oil, newsprint, Jaggery (Gur).
    ➡ I propose abolition of basic toll on all non-commercial, private light motor vehicles.
    ➡ I propose abolition of basic toll on all non-commercial, private light motor vehicles.
    ➡ I have decided to abolish toll on export of all types of fruits produced within the State.
    ➡ I also propose an incentive for SMEs & industrial units to get themselves listed at SME Exchange & others in the country to raise capital through IPOs/other market tools. I make an initial budgetary provision of Rs. 1.00 crore & will provide add money, if required.
     ➡ To extend relief to the general commuters/ transporters, I have decided to abolish Lower Munda and Heerpur Toll Posts.