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J&K Budget 2022-23: Business Community expresses dismay

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J&K Budget for 2022-23

Malik Nisar

Srinagar: The business community of Kashmir, which was waiting for a special package, has expressed dissatisfaction over the recently passed J&K Budget for 2022-23.

Finance Minister Nirmala Sitharaman, in her budget speech, said the government will continue development of the UT with focus on good governance, deepening grassroots democracy, and inclusive growth. But majority of business leaders, whom this newspaper spoke to, expressed their dismay.

J&K Budget for 2022-23President, Federation Chambers of Industries Kashmir (FCIK), Shahid Kamli, says he didn’t see anything in the budget for the revival of the industries. “We didn’t find anything for the business revival in this budget. They are not serious about the business in Kashmir because they have got no plans for its revival. Had they been serious about it, they would have consulted all the stakeholders before budget formation but they didn’t anyone,” said Kamili.

“The government is aware of what happened in 2014, 2016 and 2019, 2020 and 2021, and despite that they discredit the business units here. They should have reinforced the existing incentives, but they have withdrawn them all. The situation has crushed us but they have no plans for us,” he said.

J&K Budget for 2022-23President of Fruit Mandi Sopore, Fayaz Ahmad Malik, said despite horticulture being the backbone of economy in Kashmir, it has been ignored in the budget. Horticulture sector didn’t get the desired attention in the recently announced J&K Budget. “We were expecting that centre will wave off the KCC loans upto Rs 3 lakh as the growers are continuously facing losses for the last 3 yers. We brought this into the notice of finance minster through email but, we got no response. They say lot of things in speeches but never implement it on the ground.  Many of our demands like subsidy in transport are still pending,” said Malik.

J&K Budget for 2022-23President Industrial Association Lassipora Haji Mohammad Muzaffar believes that government could have done lot more for the industrial sector in Kashmir but says they have failed to give it its due share in the development. He said the total allocation for the industrial sector in the budget is Rs 555 crore, which is almost Rs 100 crore less than last year’s allocation.

“There should have been much more in the budget for the development industries, but they have reduced it, which is surprising. We were expecting that there should be special consideration on the electricity charges to industrialists, which is a major issue for us. But no relief on that front as well,” Muzaffar said.

“Similarly, post 5 August 2019, the toll tax in J&K was abolished which puts local industries at the disadvantage. This too needed special consideration but nothing so far,” he added.

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Economy

Editorial | J&K Budget 2025-26 – A Balancing Act

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J&K Budget 2025-26

Fiscal Constraints Amidst Development Aspirations

J&K Budget 2025-26

Preparing the maiden budget for Jammu and Kashmir as the head of an elected government of a state downgraded to a UT and remaining under central rule without an elected government for more than seven years with overwhelming challenges was an arduous task for Chief Minister Omar Abdullah.

While his speech paints a hopeful picture of a “new and prosperous” J&K, a closer look reveals a delicate balancing act necessitated by fiscal realities and the people’s aspirations: high hopes with vivid memories of recent election promises.

As Omar Abdullah seeks to lay the foundation for ‘long-term growth, stability, and self-reliance’ of J&K, he has to walk a tightrope to keep the state’s mounting debt under control. However, his prudent management to keep the fiscal deficit under leash has come at a cost: a leaner budget. This year’s budget allocation of Rs 1.12 lakh crore is Rs 6080 crore or 5% less than last year’s budget announcement of Rs 1.18 lakh crore. The reduction in budget allocation, along with 4-5% inflation, raises concerns about the government’s ability to realise its ambitious development goals fully.

The CM’s speech, though, outlines a comprehensive vision, touching upon crucial sectors like rural development, agriculture, tourism, and industry. But translating these aspirations into tangible outcomes requires substantial financial investment. Moreover, the pervasive challenge of inflation adds another layer of complexity. Rising prices erode purchasing power, making it harder to stretch limited budgetary resources.

As Omar Abdullah seeks to lay the foundation for ‘long-term growth, stability, and self-reliance’ of J&K, he has to walk a tightrope to keep the state’s mounting debt under control. However, his prudent management to keep the fiscal deficit under leash has come at a cost: a leaner budget. This year’s budget allocation of Rs 1.12 lakh crore is Rs 6080 crore or 5% less than last year’s budget announcement of Rs 1.18 lakh crore.

The emphasis on fiscal prudence, curbing non-priority spending, and enhancing revenue collection is understandable, given J&K’s historical fiscal stress. However, austerity measures must be carefully calibrated to avoid stifling economic growth and hindering essential public services, especially when inflation is already squeezing household budgets.

The budget’s focus on digital governance and healthcare accessibility is welcome. Initiatives like the SEHAT app and the expansion of digital services have the potential to improve efficiency and transparency. Yet, the question remains: are the allocated funds sufficient to ensure the effective implementation of these programs, particularly when the real cost of implementation is escalating due to inflation?

The agricultural sector, a cornerstone of J&K’s economy, receives significant attention. The success of the Holistic Agriculture Development Program (HADP) will be crucial in boosting farmer incomes and creating employment opportunities. The allocation to HADP has been reduced Rs 800 crore from last year’s 1000 crore plus. However, the program’s impact will depend on the timely disbursement of funds and effective implementation, and whether the farmers can see real increases in their income, that outpace the rising cost of goods.

Similarly, the ambitious plans for tourism development require substantial investment in infrastructure and marketing. While the government’s efforts to promote offbeat destinations and sustainable tourism are laudable, the sector’s growth will depend on attracting private investment and addressing critical challenges like sustainability and waste management, while also dealing with rising operational costs due to inflation.

Some headline-making announcements like free rides for women in public transport and 200 free units of solarised power for AAY population fail to impress the general public. The argument is J&K has almost non-existent public transport. About 850 public buses with a passenger capacity of 35,000 people do not even suffice the transport needs of the 1% of the 1.2 crore population of J&K. The 200 e-buses for two metro capital cities, announced in last year’s budget, failed to take route. CM has repeated the announcement this year.

The government’s commitment to empowering MSMEs and startups is also noteworthy. However, ensuring access to finance and creating a conducive business environment will be essential for fostering entrepreneurship, and this becomes more difficult when inflation creates financial uncertainty. In last year’s budget, a good amount was announced under Youth Startup and Seed Capital Schemes but both schemes failed to take off.

Also, the budget is unable to address the burgeoning unemployment that, as per some private surveys, has reached 32%.

Whatever the allocations, the success of this budget will be now judged by its ability to deliver tangible benefits to the people of J&K. While the government’s efforts to reduce the fiscal deficit are commendable, it must also prioritize investments that will drive economic growth, create jobs, and improve the quality of life for all citizens, while also mitigating the effects of inflation.

The challenge lies in navigating fiscal constraints and inflationary pressures while maintaining momentum on the development path. This budget sets the stage for a critical year ahead, one that will test the Omar Abdullah government’s ability to balance its books and deliver on its promises, in a climate of rising prices.

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Economy

SKUAST-K to hold mega Science Summit on Aug 23-24

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SKUAST-K Mega Science Summit

Srinagar, Aug 21: Sher-e-Kashmir University of Agricultural Sciences and Technology of Kashmir is hosting a mega first-of-its-kind science summit ‘Kashmir Science Vision-2024’ on August 23-24 at Shalimar campus. The event is expected to bring together leading scientists, researchers, policymakers, entrepreneurs and scholars to discuss and develop science and technology policy for the sustainable future of Jammu and Kashmir with a focus on helping the UT to emerge as a model for Viksit Bharat@2047.

The Kashmir Science Vision Summit will feature a dynamic range of keynote lectures, panel discussions and brainstorming sessions.

These discussions will focus on key areas of regional development like Scientific Innovations & Entrepreneurial Opportunities for exploring how technology can be harnessed to drive socio-economic growth and create new business opportunities, Biomedical & New-Age Sciences for advancing healthcare through innovative medical sciences and improving health outcomes for the region’s residents. Food Security & Sustainability for promoting sustainable agricultural practices to ensure long-term food security and environmental health, Biodiversity Conservation & Disaster Management for developing strategies to protect the region’s unique ecosystems and mitigate the impact of natural disasters will also feature in the two-day summit.

The summit aims to foster collaboration among diverse stakeholders to ensure that scientific advancements translate into meaningful benefits for Jammu and Kashmir.

Vice Chancellor SKUAST-K Prof Nazir Ahmad Ganai said the summit will serve as a catalyst for the region’s sustainable development and strategic growth. “It will be remembered as the spark that ignited science and technology-led future-ready Jammu & Kashmir,” he added.

Pertinent to mention, SKUAST-K is a premier institution dedicated to advancing agricultural sciences and technology. With a commitment to innovation and excellence, the university plays a pivotal role in fostering sustainable development and technological progress in the region.

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Trade

Lenskart enters Kashmir market, opens shop at Regal Chowk

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Lenskart enters Kashmir market

Srinagar: Lenskart, India’s leading eyewear brand, has forayed into the Kashmir valley with the opening of its first outlet at Regal Chowk in Srinagar city. This expansion marks a significant milestone for Lenskart as it continues its mission to provide vision correction solutions to every individual across the country and beyond.

With seven successful stores already established in J&K UT’s Jammu city and plans underway for another outlet in Sanat Nagar, Srinagar, Lenskart aims to extend its presence to every nook and corner of Srinagar city.

“We have plans to expand our reach into other districts of Kashmir soon, ensuring accessibility to quality eyewear products and services for all residents,” said Dr Mohammad Mutaher Zerger, who heads Lenskart’s Portfolio and Franchisee Business Divisions.

Dr Mutaher is a seasoned professional with extensive experience in franchise management. Having previously served at McDonald’s, the new head of franchise at Lenskart brings valuable expertise in expansion strategies and operational excellence. “We are dedicated to providing state-of-the-art sophistication in eyewear technology, coupled with unparalleled customer service,” he added.

Lenskart’s commitment to accessibility and affordability is reflected in its offerings, including the innovative Buy One Get One (BOGO) facility available at all Lenskart outlets and online. Additionally, the brand provides complimentary eye testing facilities, ensuring that customers receive comprehensive care tailored to their needs.

Lenskart enters Kashmir market

Lenskart Founder, Shark Piyush Bansal’s Vision is to give correction-less vision to the entire India.

In line with its dedication to innovation and excellence, Lenskart recently inaugurated a cutting-edge robotic factory in Bhiwandi, where lens production and fittings are carried out with precision and efficiency. This advanced facility underscores Lenskart’s commitment to leveraging technology to deliver superior-quality products to its customers.

Lenskart enters Kashmir market

With a network of 1800 stores across India and a growing presence in international markets such as Singapore, Saudi Arabia, Thailand, and the UAE, Lenskart is poised for further expansion into other countries in the Middle East and Asia-Pacific regions.

Lenskart’s entry into Kashmir signifies not only its commitment to providing vision correction solutions but also its dedication to empowering individuals with the gift of clear vision, enabling them to lead more fulfilling lives.

 

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