JK’S Economic Downfall

April 13, 2017 0 Comments EDITORIAL 257 Views
JK’S Economic Downfall

As per the latest state economic survey (for year 2016), Jammu and Kashmir suffered a loss of over Rs 16000 crore. This is what has been put in the survey report, prepared by the government, which as a matter of fact is prepared every year. The survey apparently mentions the factors that led to the economic loss – continuous shutdowns due to curfews and hartals. The report raises some important and relevant questions with this need to put the matters in right perspective. First of all it is a government survey report. Although the state government can do fact-finding with some precision of departmental economic losses and gains, it cannot extrapolate these findings to cover the entire sectors. Most of the losses that the state government can actually record are departmental losses. Although estimates could be made in areas where public and private enterprises form the complete sector, the findings won’t be absolute but based on approximations. Calculation of real economic loss in the state therefore remains a mystery unless government starts an extensive exercise of reaching both public and private enterprises. Although government may take input from different trade bodies but the trade bodies themselves are loosely held conglomerates with their respective sectors mostly unorganized. For instance the government does not have absolute data on private transport service providers but estimates on their number and average daily loss suffered by them individually. The real loss may show fluctuation and difference, which could be minimized if the government had put in place a system of proper registration and financial strength. The problem with the government approach is that the economic loss may not reflect real losses that are mostly suffered by private players either due to the sectors being unorganized or no effort made by the government to register the losses under a centralized system. There is a need for linking private enterprises and the work force in private sector with a centralized system so that actual data can be had. In Kashmir region, it is a challenge for government to know the real economic loss suffered by the people, a large section of whom work and function outside the systems that can be monitored by the administration.

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