JK govt presents economic survey 2007-08 in Assembly

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Jammu, Jan 15 (UNI) Jammu and Kashmir government today tabled in the Legislative Assembly the economic survey for the financial year starting March 31, 2008.

The economic survey, conducted by the government for second consecutive year, aims at assessing the emerging economic trends and keeping these in view while formulating the budget and economic policies for next year.

Minister for Finance Tariq Hameed Karra said a high and stable rate of economic growth, the large-sized 11th five-year plan of Rs 25,834 crore, an exceptionally good ''own revenue growth in the state'', a high degree of inelasticity of expenditure and an increasing but low credit deployment would be the key factors of the fiscal policy.

''All these five factors, collectively point, to the need, for having an expansionary fiscal policy, as the productive capacity of the economy is still not being fully exploited. We can sustain a high public spending till there is buoyancy in revenues and composition of spending is in infrastructure,'' Mr Karra said.

He said the unemployment, reducing but still high power deficit, a low rate of investment in agriculture, an increasing pensions bill and the impending pay and finance commission awards would be the main areas of concern.

''More than the fiscal deficit, what concerns us all is the huge infrastructural deficit as well as a serious skill deficit,'' Mr Karra said.

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