Jammu, Mar 15 (PTI) Dispelling assertions that state''s fiscal autonomy has been compromised by signing Ways and Means Advance (WMA) agreement with RBI, the J&K government today said due to non-payment, the overdraft (OD) of Rs 2300 crore from J&K Bank had become a structured deficit. "We dispel assertions made by various sections that state''s fiscal autonomy has been compromised by signing WMA agreement with RBI," Minister for Finance Abdul Rahim Rather said while
winding up discussion on motion of thanks on J&K budget 2011-12 in Legislative ouncil here today. Due to non-payment, the OD of Rs 2300 crore from Jammu & Kashmir Bank had become a structured deficit and government was left without any option to arrange over draft in case of emergencies, Rather said. Rather said OD is temporary arrangement to overcome mismatch between receipts and expenditures "I also dispel apprehensions that the government has severed its ties with J&K Bank. Bank would continue to be the Banker of the state government", he said. In fact, the agreement with RBI is a bold step to get rid of chronic outstanding of Rs 2300 crores overdraft from J&K and to make the J&K a clean state to begin with, he said. He said the state government''s WMA arrangement with the RBI is in the interest of the state government, J&K Bank and people of J&K.
winding up discussion on motion of thanks on J&K budget 2011-12 in Legislative ouncil here today. Due to non-payment, the OD of Rs 2300 crore from Jammu & Kashmir Bank had become a structured deficit and government was left without any option to arrange over draft in case of emergencies, Rather said. Rather said OD is temporary arrangement to overcome mismatch between receipts and expenditures "I also dispel apprehensions that the government has severed its ties with J&K Bank. Bank would continue to be the Banker of the state government", he said. In fact, the agreement with RBI is a bold step to get rid of chronic outstanding of Rs 2300 crores overdraft from J&K and to make the J&K a clean state to begin with, he said. He said the state government''s WMA arrangement with the RBI is in the interest of the state government, J&K Bank and people of J&K.
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