‘Treasuries not running dry, all financial liabilities being regularly discharged ‘

Jammu, Mar 13: Chief Minister Omar Abdullah, who also holds the portfolio of the Finance Ministry, has firmly denied any accrual of significant financial liabilities due to poor financial planning. This statement comes in response to growing reports of financial strain, with claims that the state’s treasuries were running dry, leaving employees and the general public in distress.
In a detailed reply to a starred question posed by Mir Mohammad Fayaz, the government refuted allegations of financial mismanagement. The Chief Minister claimed in his reply that all financial liabilities are being regularly discharged, and there is no substantial delay in payments. The government disclosed that during the fiscal year 2024-25, Rs 5,280 crore has been allocated for General Provident Fund (GPF) payments, Rs 1,041 crore for gratuity, Rs 953 crore for commutation, and Rs 278 crore for leave salary. The treasury-wise details of pending bills, specifically related to GPF pensioner benefits, were also provided to the legislator.
However, as per the government estimates, the number of employees subscribing to GPF has seen a slight decline, with 2,09,459 employees in 2022-23 contributing Rs 3,929.24 crore, and 2,02,904 employees in 2023-24 contributing Rs 4,090.77 crore. The government clarified that GPF subscriptions are received as contra credits, which are essentially book adjustments. Payments are being cleared regularly based on the availability of resources.
The government also addressed concerns regarding delays in payments to contractors for executed works. It stated that priority is given to clearing bills for capital works to boost infrastructure development. During 2024-25, Rs 6,184 crore has been paid to contractors, and all bills up to January 7, 2025, have been cleared.
Pertinently, according to the Economic Survey Report (ESR) 2024-25 tabled in the House on Thursday, the outstanding debt of Rs 1,25,205 crore represents 52 per cent of J&K’s GSDP of Rs 2,38,677 crore. The public debt of Rs 83,010 crore constitutes 66 per cent of the total on-budget outstanding debt in FY 2024, including internal debt of Rs 82,300 crore and Rs 710 crore in advances from Government of India. (KNO)