J&K severly deficient in economic, social infrastructure : Minister

Jammu, Jan 16 (UNI) Jammu and Kashmir is facing a huge infrastructural deficit and needs to pursue two sets of policies -- one for the government finances and other for economic development -- to achieve the objective of holistic development and growth, Finance and Planning Minister Tariq Hameed Karra today said.

Releasing the first-ever economic survey of the state legislature, Mr Karra called for devising a focused planning mechanism for the state to catch-up with the rest of country in infrastructure availability.

''Nearly two decades of conflict and civil strife has dented governance institution, weakened public expenditure management systems and increased transaction costs making it difficult to endanger and monitor development,'' he said.

The state economy is undergoing a critical phase of reconstruction and rehabilitation and real challenge is to catalyze the existing potential into growth impluses through fiscal mechanism ensuring sustainable long-term economic development, Mr Karra said.

He said the structural interventions have to be developed with a view to impact the state's own resource base, maintain sustainability of economic growth and focus on employment generation in private sector.

The state, the minister said, has several characteristics that pose major development challenges and have a direct bearing on its growth performance.

''The state economy exhibits a high degree of volatility and suffers from limited capacity in the public and private sector,'' he said, adding that the state has a very limited access to national capital markets.

''The only type of infrastructure that the state has an excess is of administrative infrastructure,'' he added.

Mr Karra said an objective assessment of the macro economic situation of the state provides a prelude as well as a context to assign the fiscal priorities.

''This is the last year of the 10th plan, and since the 11th plan commences from the next fiscal, references have made in the (economic) survey in suitable context to the developments over the 10th plan period and the requirements of economic policy making in the 11th plan,'' he said.

Elaborating on the highlights of the economic survey, the finance minister said the state had recorded 5.5 per cent economic growth during the first four years of 10th plan as against 7.0 per cent annual economic growth at national level.

The gross state domestic product (GSDP) was estimated to be Rs 25,050 crore for the year 2006-07, the minister added.

On the social infrastructure side the things look even bleaker, according to Mr Karra.

''We have only 111 hospital beds and 48 doctors/vaids/hakims available per lakh of population'' he said.

Mr Karra said the literacy rate, as per 2001 census was 55.52 per cent as against 64.84 at national level.

Further, of 11,184 habitations, only 71 per cent stand fully covered under potable water supply, he added.

The finance minister said it would take time and require financial resources to build the economic and social infrastructure in the state at par with national level.

UNI