Jammu & Kashmir Plan for 2013-14 finalized by Planning Commission of India

The Annual Plan size of 7300 crore rupees for the year 2013-14 was finalized for the state of Jammu and Kashmir on 9 July 2013 by the Planning Commission of India (PCI). The plan size was agreed during a meet of the Deputy Chairman of Planning Commission, Montek Singh Ahluwalia and Chief Minister of Jammu and Kashmir, Omar Abdullah.

The state would be considered for PMRP (State Sector) projects and can be offered 600 crore rupees, in addition to the annual plan. An amount of 3000 crore rupees is likely to flow from the Centre to Jammu & Kashmir through various Centrally Sponsored Schemes. Moreover, a special assistance of 710 crore rupees, would be made available to the state from the central plan for PMGSY projects. Compiling all the resources to be given to the state, the Plan assistance from the Central Government to the State of Jammu & Kashmir is expected to be over 11000 crore rupees, during 2013-14.

The twelfth five year plan will focus on accelerated and sustained Growth, Growth-employment Linkage, Consolidation of Infrastructure, Empowerment of people, & building of human and institutional capacities. The State would target a modest and realistic growth rate of 7.5 percent with focus on productive sectors and promoting private and public investment in the infrastructure sectors. Making growth inclusive by putting in place special component plans.

State Performance during 11th Five Year Plan Period
• Gross State Domestic Product (GSDP) growth rate of J&K during the 12th Plan Period was only 6 percent which is lower than national average of 8 percent
• Service Sector growth rate of J&K was 9.5 percent which was almost at par with the national average of 9.7 percent during 11th Plan
• The state performed well in sectors like horticulture, education and health sector
• As a percentage of GSDP, State’s Own Tax Revenue is about 6.7 percent in 2011-12 which needs to be further increased to balance the requirements for expenditure
• Efforts made by the State to augment the State’s own tax revenue was appreciable
• During the 12th Plan Period, the state also aims towards enhanced and inclusive development is a key component of the overall strategy to build on peace dividends

Jammu and Kashmir needs to step-up growth to catch up with all India average. Agriculture is a primary and traditional occupation which is vitally important for the balanced and sustainable growth of economy. The State needs to take advantage of on-going schemes like RKVY and NHM to nurture development of this sector.

Jammu & Kashmir has great potential in terms of natural resources which should be harnessed to generate sustainable growth and income opportunities for the people. Tourism, obviously, holds good prospects for the State. The State Government needs to prepare a comprehensive plan to improve high value tourism as well as religious tourism.

During 12th Five Year Plan (2012-17) the state needs to look forward to
• Power Sector deficit which has been affecting the State’s Own non tax revenue adversely
• The National development Council (NDC) has identified 25 monitorable targets that reflect towards the vision of rapid, sustainable and more inclusive growth during this plan period.
• One of the monitorable targets is generation of 50 million new work opportunities in the non-farm sector and skill certification of equivalent numbers during the 12th Plan.
• The State needs to ensure better performance of ITIs/ITCs by effective utilization of their seating capacities and ensure proper coordination among various line departments engaged in skill training.
• The 30 habitations that suffers with the quality of water problem due to presence of Fluoride, Iron and Salinity, needs to be taken care of and bring a solution to the problem
• Further, 46 percent habitations are fully covered with drinking water facilities against the national average of 76 percent. The State Government should step up the efforts to cover 100 percent habitations with water supply facilities during 12th Plan under National Rural Drinking Water Programme (NRDWP).
• The state needs to focus on the development of the social and physical infrastructure to restore economic activity and encourage private participation to create atmosphere of conducive investment
• The state needs to prioritize education, health and tourism and develop a strategy to promote the them
• Promotion of heritage, adventure, pilgrim and eco-tourism should also receive attention.