Srinagar, Dec 17: Jammu and Kashmir Chief Minister Omar Abdullah on Wednesday said the Union Territory’s financial dependence on the Centre has increased since its transition from a full-fledged state, citing the loss of the state’s share in central taxes as a major factor.
Reacting to Union Finance Minister Nirmala Sitharaman’s remarks on the importance of fiscal discipline to reduce the debt to GDP ratio, Abdullah said Jammu and Kashmir is not financially self-sufficient and relies heavily on central assistance.
“Jammu and Kashmir is largely dependent on the Centre for financial resources. Instead of reducing, this dependency has actually increased after we were made a Union Territory,” Abdullah, who also holds the finance portfolio, told reporters.
He explained that as a state, Jammu and Kashmir earlier received a share from central taxes, which is no longer available under the UT framework, shifting a significant budgetary burden directly to the Centre. However, he asserted that the government is making efforts to maintain fiscal discipline.
“We have tried our best to ensure there is no laxity in financial discipline,” the chief minister said.
On the promotion of adventure tourism, Abdullah said the government is keen to expand such activities but will not compromise on safety and security. Citing recent incidents elsewhere in the country, he stressed that stringent safety measures are essential.
“We are doing our best to promote adventure tourism, but safety comes first. We do not want any unfortunate incidents here,” he said.
Addressing tourism development, Abdullah said reopening established tourist destinations should be prioritised before promoting lesser-known locations. He pointed out that several popular spots, including areas around Gulmarg, Drung and Doodhpathri, remain closed to tourists.
“Open these destinations first before talking about promoting new ones,” he said.
On the ongoing power crisis, Abdullah said electricity generation in the Union Territory has dropped due to reduced water discharge in rivers. While acknowledging the need for heating during harsh winter conditions, he urged residents to use electricity responsibly.
“It is very cold and people need warmth, but electricity must be used judiciously,” he added.