Three years after Article 370 abrogation, Jammu & Kashmir to get statehood?

Three years after Article 370 abrogation, Jammu & Kashmir to get statehood?

The temptation to borrow beyond capacity would create inter-generational burden and affect fiscal soundness of the country, she noted.

Union Finance Minister Nirmala Sitharaman on Saturday hinted at statehood for Jammu and Kashmir, three years after Article 370 of the Constitution, which had given special status to the union territory, was abrogated.

Sitharaman said PM Narendra Modi, soon after assuming charge, had accepted the recommendation of 14th Finance Commission in 2014-2015. “The 14th Finance Commission submitted a report in 2014, and said what was still then being given – which is 32 per cent of all tax collected – to states, was to be changed to 42 per cent… all at one go.”

Sitharaman was delivering the second P Parameshwarji Memorial Lecture on “Cooperative Federalism: The Path Towards Atma Nirbhar Bharat” organised here by Bharatiya Vichara Kendram in memory of Sangh idealogue P Parameshwaran.

“This effectively meant that the Centre would have lesser amount in its hand. Prime Minister Modi – without a second thought about it – fully accepted the Finance Commission recommendation,” she said.

“That is why today states get 42 per cent of the amount… now reduced by 41 per cent because Jammu and Kashmir is no longer a state. It will soon become may be sometime…,” the Union Minister further added.

Three years after Article 370 abrogation, Jammu & Kashmir to get statehood?
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Jammu and Kashmir is expected to go for polls for the first time since the abrogation of Article 370.

The finance minister also said indiscriminate borrowing and spending by certain States on non-merit goods and expenditure is a matter of concern, and fiscal strength is a critical component for ‘Atma Nirbhar Bharat’.

The temptation to borrow beyond capacity would create inter-generational burden and affect fiscal soundness of the country, she noted.

“There are new sources of risks every state is facing. The temptation to spend on non-merit goods… The tendency to get into such not-so-viable, non-merit expenditure is very high in some States,” she said.

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