The Jammu and Kashmir government’s wage bill has swelled to more than Rs 12,000 crores in the year 2011-12.
The salary bill of the state government,which was about Rs 282 crores in 1988-89,has swelled to more than Rs 12,000 crores in the year 2011-12,the State Labour and Employment Abdul Gani Malik told the Assembly in a written reply to a question by CPI(M) Member M Y Tarigami here today.
With the expansion in government activities and programmes,the government establishment has also expanded exponentially over the years,he said adding as a result,expenditure on salaries has witnessed an abnormal growth.
The budget cabinet,which discussed the issue in detail expressed concern that,unless administrative innovation and expenditure control mechanism are put in place,the state government will actually be left with lesser and lesser resources for development works and execution of public welfare schemes,he said.
The capital expenditure (CAPEX),as a percentage of total expenditure has also declined over the year,he said adding that as a result of the decline in capital expenditure,growth of Gross State Domestic Product (GSDP) and consequently,employment generation has also been adversely affected.
This is borne out of the fact that the 6.61 per cent growth rate of the state GSDP at Rs 37,887 crores during the last year has been lower than the growth rate of 8.6 per cent at the national level,he said.
Similarly,the growth in per capita income in the state is also behind the per capita income at the national level,he said adding that it is,accordingly,felt that to push GSDP growth into a higher trajectory level,greater capital expenditure is required to be made on priority basis.
“This will enhance the per capita income and lead to more job creation in the economy”,Minister said.
Therefore,to sustain this and allow the state economy to grow,it is absolutely essential that the share of capital expenditure in the overall budget expenditure is allowed to maintain a healthy growth,he said.