NEW DELHI, NOV 28: The Jammu and Kashmir Government today asked the Centre to write off the expenditure incurred by the State in fighting terrorism.``The heavy expenditure needed for ensuring defeat of nefarious designs of those who were and still are keenly interested in destabilisation of our state and our republic needs to be written off and any liability arising therefrom waived,'' Chief Minister Farooq Abdullah said in his address at the fourth meeting of Inter-State council here.He hoped that the Central Government would contribute ``more generously'' for the overall economic reconstruction of the state and give all aid to ensure its further development.``This has become an urgent task in view of the havoc caused by the undeclared war waged against the state and the country'' by inimical forces, Farooq argued.He said a substantial part of Plan funds had to be diverted to the maintenance of valuable capital assets resulting in depletion of resources available for capital formation.Reiterating his government's opposition to the levy of a consignment tax, the Chief Minister said it would increase the cost of economy in general and reduce the tax potential of the state.``This is a discriminatory tax and not in the interest of Inter-State cooperation and goodwill,'' Farooq said. Referring to the Fifth Central Pay Commission recommendations (which will have to be implemented in view of the standing agreement with employees association to provide parity with Central pay scales), he said the likely expenditure on account of the recommendations will widen the state's deficit.``The Tenth Finance Commission should have anticipated and included the requirement on account of liabilities likely to arise as a result of the recommendations,'' the Chief Minister said pointing out that Jammu and Kashmir is already a revenue deficit state.
