J&K receives 73 % of State GDP through Central Grants

Discussion in 'Economy & Infrastructure' started by sehwag1830, Jun 12, 2012.

  1. sehwag1830

    sehwag1830 Tihar Jail Banned

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    This just can't continue.Looks like belonging to a particular community and doing all irritating things is really rewarding in this country.

    GSDP:10.39 billion $
    Central Grant : 7.55 billion $

    So the entire state with population of 12 million , produces self gdp of grand 2.8 billion $ (lowest in the World ).

    Just because people of Bihar & UP don't belong to a particular community and don't demand separatism doesn't mean we should not provide them money. They are atleast hard working and do job all over the country.

    Pakistan and Kashmir have 2 things in common
    :both are beggars
    :both belong to a particular community

    Kashmiri are worse than Somalian.

    I think before NREGA , this terrorism entitlement fund should be stopped.

    Source:
    State Domestic Product of India 2011-12 | State-Wise GDP 2011 | District GDP of India | State-wise Population 2011 | VMW Analytic Services
     
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  3. ajtr

    ajtr Veteran Member Veteran Member

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    If you dont want to spend on it then why not let it go free like pakistan and that way you can save your billions.
     
  4. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    In India, the person who shouts loudest, gets the maximum concessions. That is why people come out on the streets demanding reservations, and all that shit. This just cannot go on, I agree.
     
  5. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    Why not keep it with us without spending the money and let the people who want to go to Pakisatan, go?

    There will never be a second partition of India, we will do anything it takes to stop it. If the 1990s have not taught you duffers that much, maybe you need one more dose.
     
    parijataka likes this.
  6. sehwag1830

    sehwag1830 Tihar Jail Banned

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    As if Pakistan has money to keep Kashmir. India spends 1/3 rd of entire Pakistan's tax collection on Kashmiri beggars.
     
  7. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    Not sure where you get your stats from regarding Central grants to J&K. And Kashmiris are Indians too first and foremost. Not Pakistanis.


    Granted that the GDP is around 10-10.5 Billion USD, but according to the budget documents on J&K govt. website

    The total revenue was around 5.3 Billion of which half(52%) is from central grants or around 3 Billion USD which includes Plan Panel amounts from the Planning comission that all states recieve. For this year their budget had a zero deficit i.e. revenue and expenditure were the same

    Keep in mind that J&K has been going though a 20 year insurgency which is finally coming to an end. You can compare this to the economy in the North Eastern states for example to have a true comparison.

    Even if you compare this to Uttarkhand that has had no major conflicts and has the same population as J&K as well as a similar GDP. Its most recent revenue receipts were around 2.9 Billion USD of which the central grants were again a little less than half (45%) at around 1.4 Billion. Although they did have a small revenue surplus.
    Uttarkhan budget documents here
    http://budget.uk.gov.in/files/pdf/6-budget_at_a_glance2012-13.pdf



    Given the peace dividend is bringing back tourists with last year being the best on record, its nice to note that they had the highest tax collection growth of 38% last year than any other state in India by far.
    More info here
    http://jakfinance.nic.in/Budget at a glance 2012-13.pdf


    If I'm not mistaken, most of the NE states actually have larger proportions of their budget funded by central grants than even J&K. Just do the exercise by looking at the budget documents for smaller states and find out for yourself. Maybe then the "particular community" blinders will be lifted.
     
    Last edited: Jun 12, 2012
  8. ajtr

    ajtr Veteran Member Veteran Member

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    You are just speaking about J&K,pakistan has ability to keep India along with J&K and price of that will be paid by 1.5 billion residents of subcontinent in terms of tax.
     
  9. sehwag1830

    sehwag1830 Tihar Jail Banned

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    ^^^
    Why don't you read here , list of Indian states with Central Grants:
    States With Highest Grant Receiver From The Center
    State Grants from the Center

    Uttar Pradesh $8.39
    Jammu & Kashmir $7.55
    Andhra Pradesh $6.6
    Maharashtra $6.36
    For FY 2011 in billions of USD.
    State Domestic Product of India 2011-12 | State-Wise GDP 2011 | District GDP of India | State-wise Population 2011 | VMW Analytic Services

    I will trust this anyday over J&K govt. finance data.

    And since when tax/gdp reach 52 % in Kashmir when it is 17% all over India. False data by J&K govt.
     
  10. sehwag1830

    sehwag1830 Tihar Jail Banned

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    First try to keep Balochistan .
     
  11. Sabir

    Sabir DFI TEAM Senior Member

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    @ Sehwag...it is very offensive to call our countrymen the beggers ...there are terrorists and their supporters but you cant generalise such a way. You are showing hatred to them and advocating it is an integral part of India- what a hypocracy.....(And Kashmir belongs to the Kashmiris first ...if it stays in India ...it will be so with its people....)
     
  12. sehwag1830

    sehwag1830 Tihar Jail Banned

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    These so called Kashmiris kicked out Hindus out of Valleys. Kashmir belongs to India. And these jihadi beggars should go to Pakistan. We can't spend annually 7 billion $ on them.
     
  13. sehwag1830

    sehwag1830 Tihar Jail Banned

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    @EJaz read here :

    While 53% are the central grants and 13% is the state's share from the central tax pool, J&K's own tax base will contribute 16% to the requirements and the non-tax another six percent. Balance 12% will be managed by borrowings.

    Cash-starved J&K presents another zero-deficit budget

    So basically 78% from Central Grant which is higher than i wrote in my OP.
     
  14. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    ^^^

    The central grants are around 52-53% of the govt. revenue, not the Tax to GDP ratio. Last year the central grants consituted about 57% of the J&K budget. (Budgeting Jammu and Kashmir | Pragmatic Euphony)

    You are adding 53+13+12 and saying 78% from centre. That is the wrong way to look at it. The Central tax pool is that taxes that the Centre collects on behalf of the state. It is the states own money. Check the budgets for Maha, Delhi, Gujarat and other states and see their share of the Central taxes that they recieve. This is as per the Finance comission that allows the centre to collect custom duties and the likes for import and export of goods and then returns a share of these taxes to the states. So there goes the 13%. The other 12% in borrowings is something that the J&K govt. has to pay back its NOT a central grant. The borrowings are not from the Central govt. but from the banks. These could be state banks or commercial banks.
    The grants in aids and plan panels outlays from the planning comission are the ACTUAL central aid provided to J&K and other states. This what can count as Centre's money being given to the states.

    Hence the real contribution is really 53% of the REVENUE which is around 6 billion USD. That is the revenue that J&K has busgeted for. In terms of GDP, the central assitance is around 30% of GDP as the GDP is around 10-10.5 Billion USD and Central assistance around 3 billion USD


    Like I said, JK started expereincing violence just when the rest of the Indian economy was taking of in the 92-93 period. Its only now that there has been a restoration of peace in J&K, we are seeing close to double digit if not double digit growth in J&K. Corresponding increase in revenue and taxes should be the 38% in taxes in general and 42% increase in commercial taxes. Also the J&K govt. is no longer needing to borrow money this fiscal which is great considering that it has one of the highest debt-to-GDP ratios in the country alongwith other NE states. Ofcourse, J&K still has a long way to go. They still spent 44% of their budget on only salaries so that pretty much leaves little room for major investment projects by the state govt.

    J&K, NE states and border states like Himachal Pradesh, Uttarakhand, Sikkim come under the Special category status where the Centre provides a larger share of resources as compared to other states because of their terrain, startegic importance or insurgency related issues.
     
    Last edited: Jun 12, 2012
  15. sehwag1830

    sehwag1830 Tihar Jail Banned

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    @Ejazr :
    Read once again


    While 53% are the central grants and 13% is the state's share from the central tax pool, J&K's own tax base will contribute 16% to the requirements and the non-tax another six percent. Balance 12% will be managed by borrowings.

    53+13+12 =78%.
    This is the same way it is calculated for rest of the Country.

    And please don't compare these kashmiri to other states

    Uttar Pradesh $8.39
    Jammu & Kashmir $7.55
    Andhra Pradesh $6.6
    Maharashtra $6.36
    For FY 2011 in billions of USD.

    Why no other state shows up in this list .
     
  16. sehwag1830

    sehwag1830 Tihar Jail Banned

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    By other states i meant:

    J&K, NE states and border states like Himachal Pradesh, Uttarakhand, Sikkim come under the Special category status

    Kashmir definitely is more special than other parts of the country for India.
    Not only they have article 370, they get huge fund from Indian citizen without any question.
     
  17. sehwag1830

    sehwag1830 Tihar Jail Banned

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  18. ejazr

    ejazr Stars and Ambassadors Stars and Ambassadors

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    @sehwag

    I have clarified about your addtion of central grants in aid earlier and also pointed out that this is percentages of the REVENUE and not GDP.

    REVENUE is around 6 Billion while the GDP is close 10.5 Billion.

    Read this part again
    From the budget documents the grants in aid is around 3 Billion. So I don't understand how there can be such a big discrepancy. There must be a mistake on the unidow website. As your dailykashmirimages link as well as the budget documents I posted show, Central aid was around 3 Billion in both cases. That gives more weightage to the 3 Billion figure rather than the 7 Billion. And with 3 Billion it would not be in the top 5.

    And I have already given you the example of Uttarkhand that gets 45% of its budget in central grants. Maybe not as close to J&K which gets 53% from the Centre but on the otherhand it hasn't expereinced a 20 year insurgency.

    I have just researched one more example for you which is Mizoram. Accroding to their budget documents, they actually do receive around 70% of their budget revenue from the Centre. These are grants from the Centre along and not adding up of devolved Central tax pool or loans.

    Revene account total is 663 million USD
    Central aid total is 644 million USD
    http://mizofin.nic.in/file/b2011-12/explanatory 2011-12.pdf
     
    Last edited: Jun 12, 2012
  19. sehwag1830

    sehwag1830 Tihar Jail Banned

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    @EJAZr

    I don't think there is anything wrong with my link because i have checked states budget of all the remaining other 4 states in that list and it matches with them.
    This means J&K receives another 4 billion $ in special grants which budget document doesn't mentions.
     
  20. Bangalorean

    Bangalorean Stars and Ambassadors Stars and Ambassadors

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    This ajtr, who wants Hindus to be dumped in the sea and calls them leprosy and curse of subcontinent, is going to be shot one day in some airport while trying to smuggle in a bomb in a breast implant. And that will end the saga of this nutcase Jihadi.
     
  21. sehwag1830

    sehwag1830 Tihar Jail Banned

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    galaxy please remove that quote , the post has been deleted.

    @EJAZR:
    Still why should we provide them money if we can't even RTI where the money is going.Atleast in other states there is still chance corrupt people will be caught.
     

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