Srinagar, March 11 (KNS) Jammu & Kashmir People's Conference President and MLA Handwara Sajad Lone launched a sharp critique of the recently presented J&K budget, calling it a politically motivated exercise that lacks financial viability.
Speaking in the Assembly, he asserted that budget formulation is a strategic and complex process typically overseen by experienced officers, but this budget raises significant concerns regarding its economic soundness.
Commenting on its political underpinnings, Lone stated, "When I evaluate this budget within a political framework, I see that it echoes the 'Naya Kashmir' narrative and discourse championed by Prime Minister Modi and the BJP, which has been aggressively pushed post-August 5, 2019."
He pointed to contradictions in the government’s approach, remarking, "These are the same schemes and policies that were once criticized but are now being hailed as transformative. The very PMDP for which we were vilified has suddenly become praiseworthy. Everything the ruling party has dismissed over the past five years is now being glorified. Both NC and BJP are competing in their praise of Modi Ji, leaving us confused about which endorsement is more enthusiastic."
To underscore the failure of past promises, Lone presented the National Conference’s manifesto in the Assembly, reading aloud its commitments, including 200 free electricity units, job creation and social welfare benefits, all of which remain unfulfilled.
He asserted, "If I were to present this manifesto as evidence, as one does in a court, it would be clear that there is no mention of free electricity units being restricted to AAY beneficiaries. The promise was unconditional."
Backing his arguments with financial analysis, Lone outlined the staggering cost required to fulfill these commitments.
"The ruling party’s promises alone require 3,000 crore for one lakh jobs, 2,200 crore for the regularization of daily wagers, 760 crore for providing 12 gas cylinders per household, and 1,000 crore for implementing the Employment Guarantee Act." Adding additional expenditures, he noted, "The total would rise to 12,000 crore per year, amounting to 60,000 crore over the next five years." He further emphasized, "On top of this, the budget includes a one-time settlement of electricity bills, interest subvention on farmers' loans, establishment of preservation parks, plantation of medicinal trees, and the creation of six ‘dream destinations.’ This pushes the projected cost to nearly 65,000 crore over five years. My question is simple—what is the financing plan? Where is this money coming from? I challenge you to explain the economic science behind it."
Lone questioned the budget’s capital expenditure figures, highlighting discrepancies. "For 2025-26, the capital expenditure outlay is 32,000 crore, while for 2024-25, it was 36,000 crore, later revised to 32,000 crore." He noted that the numbers indicate stagnation or decline.
"If the revised estimate is lower than the initial one, the rule of thumb is that the government lacks the absorption capacity for higher spending. If expenditure is shrinking at the macro level, how can it increase at the micro and sectoral levels?Click Here To Follow Our WhatsApp ChannelThe numbers simply do not add up."
Turning to revenue generation, Lone raised alarm over the dramatic increase in asset monetization.
"The budget shows asset monetization rising from 1% in 2024-25 to 7% now. What assets are being monetized? This House has a right to know, as 7% of the budget is a massive sum." He further criticized the 1% tax hike, stating, "This amounts to an additional burden of 1,000 crore, which will be extracted from the pockets of ordinary citizens. The impact will be most severe on the lowest 30% of the population."
He also expressed skepticism over the government’s promise of free electricity units for AAY beneficiaries, pointing out that it hinges on Central Sponsored Schemes (CSS).
"Under these schemes, the Government of India funds 60-70%, while the remaining share must come from the state. Will you provide that share? The cost stands at 150 crore annually and 750 crore over five years, in addition to 500 crore in social security benefits, bringing the total to 1,250 crore."
Moreover, he argued that the increase in fuel prices would offset any benefits. "Diesel and petrol prices impact public transportation directly. With 530 tankers of fuel consumed daily, each holding 12,000 liters, the annual cost increase amounts to 500 crore. The same AAY beneficiaries meant to receive relief will ultimately pay back 80% of this increase through transportation expenses, while the elite remain unaffected."
Lone was equally critical of the government’s plan to generate 1,000 crore in additional revenue from electricity bills, stating, "This will be extracted from the very people who were promised relief through free 200 units. The government plans to increase revenue from non-metered areas, forcing those consumers to bear the burden of this 1,000-crore increase."
He pointed out inconsistencies in the budget document, remarking, "Even on Page 58, Clause 155(d), there is ambiguity, signaling that the financial strain will disproportionately fall on ordinary citizens."
He urged the government to enforce the Minimum Wages Act across both public and private sectors and called for stricter regulations on private employers.
"If private companies fail to comply with minimum wage laws, their licenses should be revoked."
Discussing tourism, Lone criticized the lack of substantial investment, stating, "The sector needs structural representation with active private sector participation. You have allocated only 50 crore for ‘dream destinations.’ How is that even remotely sufficient?"
Concluding his address, Lone painted a grim picture of the financial situation, remarking,
"The treasury is running dry, and there is no liquidity in the market. The Hon'ble Finance Minister doesn’t even realize what he doesn’t know. He only knows what has been handed to him, blind to the realities outside. This budget will deal a severe blow to the most economically vulnerable." (KNS)