HOW DOES BUDGET 2024 SEE HIMALAYAN STATES & UTS

Himalayan states that share borders with neighbouring countries of (Tibet) China, Pakistan, Nepal, and Bhutan have faced tardy development since independence. This is partly because of difficult terrain and ecological fragility. Backwardness too is a factor. The terrain is hilly but most of the states are important from a security point of view particularly because of some hostile neighbours.

Himalayan states and Union Territories comprise Jammu and Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, North-eastern states of Sikkim, Assam, Arunachal Pradesh, Nagaland, Mizoram, Meghalaya, Manipur, Tripura and parts of West Bengal (North Bengal). These states and UTs have remained backward. Only Sikkim, Tripura and Himachal Pradesh have done well in social, human and economic indices, which are comparable with some of the advanced states in the country.

Jammu and Kashmir though has a lot of potential has been lagging behind due to cross border terrorism for decades and has been a trouble-torn right from independence in 1947 due to hostilities from neighbouring Pakistan. The economic developments of these Himalayan states have not been that good and progress was at a snail’s pace as the successive governments have had other more pressing priorities.

It was first BJP Prime Minister, Atal Behari Vajpayee who created a separate ministry named DoNER for all the Northeastern states and Arun Shorie was the first such Minister with a cabinet rank. He also brought then J&K state under PMO. Earlier both the areas were under Home Ministry only. Later each Ministry had to earmark 10 percent of its budget to the NE region. Later the unspent amount which used to lapse was kept in a non-lapsable pool of funds.

Prime Minister Narandra Modi all through his more than decade long rule has laid special emphasis on economic development since he came to power in 2014. Every successive budget since then has stressed on the development of the region, both from a security point of view and to bring these regions into the mainstream of the nation.The 2024 general budget, presented by Finance Minister Nirmala Sitharaman on July 23 after Modi came to power for this third term is no different and in fact has gone step further in pushing ahead this agenda.

In the case of Jammu & Kashmir Article 370 of the constitution was abrogated by the Modi government in August 2019, making constitutional rights and power there on par with the rest of the states in the country. Since then there has been special efforts by Modi to double- up development and wean away people from fissiparous tendencies. The Union Budget for 2024-25 has therefore allocated significant funds to Jammu and Kashmir, with a total transfer of ₹42,277.74 crore through the Ministry of Home Affairs as there is no elected government at the moment. This allocation aims to bolster various sectors, from industrial development to education and infrastructure.

To promote industrialisation of Himachal Pradesh and Uttarakhand, the budget has announced Rs 567 crores to these two states with special emphasis on job creation apart from pushing economic growth of these two hill states. Over Rs 1300 crore GST is to be provided to the Himalayan and North-eastern states, which will give that much relief and additional funds for development activities in these states. This will encourage more businesses to be set up, particularly micro, small and medium industries, which are not only drivers of growth in backward areas but also an employment generator. Border roads development gets a substantial Rs 6500 crore, which can be spent mostly in these Himalayan states. The spin-off of this border roads development would lead to creating much needed infrastructure and providing logistics development in these backwards regions to spur economic activity.

This infrastructure development also helps in securing our borders and road development by itself provides huge employment opportunities to locals in the region. It will help in connecting remote areas and act as growth engines in rural areas. A Border area development programme has been allocated an additional Rs 2000 crore. This will benefit the Himalayan region in creating infrastructure facilities in remote areas, apart from rural development, education and health care. Livelihood issues too will get addressed.

All these states are to benefit from the massive allocation of over Rs 70,000 crore in the budget for the national rural drinking water mission called Jal Jeevan Mission. This is aimed at providing access to clean drinking water for all and the mission was started a few years ago and every year the allocation is increased to cover more areas. The health mission gets over RS 38,000 crore and Pradhan Mantri Awas Yojana gets over Rs 80,000 crore. The Himalayan states would get its share in these two national missions aimed at improving health care and providing a roof over the head of every family in this country through this rural housing mission. Ayushman Bharat Yojana gets Rs 7,500 crores to provide health cover to the poor and Pradhan gram Sadak Yojana gets Rs 19,000 crore and Himalayan and North-eastern states too would get its due share in these national projects.

It is during Modi’s regime during the last 10 years, it was ensured that all the northeastern states have both air and rail connectivity, which had been eluding for several states. All the NE states got better air, rail and road connectivity in the past few years. This is important to give a fillip to economic and social development.

A region wise analysis showed a modest increase of only 8 crore rupees totalling to Rs5,900 crore up from Rs5,892 crore last fiscal in the first budget of the 3rd BJP led NDA Government presented by the Union Finance Minister.

The budget comprises Rs2,040.68 crore in revenue expenditure and Rs3,859.32 crore in capital expenditure reflecting a strategic focus on enhancing infrastructure and regional development in North East India. The establishment expenditure covers administrative and operational costs of the ministry. branches in the North East.

Budget for NEC schemes sees an increase to Rs820.00 crore from Rs800.00 crore in the previous fiscal year which also includes committed for ongoing projects under NEC schemes. This funding is crucial for the balanced development of the northeastern states, focusing on sectors such as bamboo, piggery, regional tourism, higher education and tertiary healthcare.

Source: Himalayan News Chronicle