Panel on J&K’s fiscal needs
Tribune News Service

NEW DELHI, Nov 17 — The Centre today constituted a high-level committee to work out financial demands of Jammu and Kashmir and continue coordinated operations against militants.

At a special meeting to review the situation in the state which was convened by the Union Home Ministry, the Centre decided that special attention would continue to be paid by the unified command to check infiltration, protection of minorities and vital installations.

Briefing correspondents, Mr Advani said the meeting took up separately the security situation and the financial requirements of Jammu and Kashmir.

Although Dr Abdullah came looking for funds from the Centre and a waiver of Rs 1,250 crore, all he got was a special committee comprising officers of the ministries of Finance and Home, the Planning Commission and the J and K Government which would meet on Monday to work out the financial requirements of the state for the current financial year and for the next three to five years.

Apart from Mr Advani, those present at the meeting included the Defence Minister, Mr George Fernandes, the Finance Minister, Mr Yashwant Sinha, the Deputy Chairman of the Planning Commission, Mr K.C.Pant, and the Chief Minister of Jammu and Kashmir, Dr Farooq Abdullah, along with senior officials of the Home Ministry, the police and the state.

Mr Advani said the recent attacks by militants on the security forces reflected their frustration rather than confidence following the Kargil intrusions. "They (attacks) are the direct fallout of Pakistan’s humiliating defeat in the Kargil operations", the Home Minister said.

He said although the Kargil war was over, "in a way it is still on". However, Dr Abdullah, who was also present at the press briefing said while the Centre termed militancy in Kashmir as a proxy war by Pakistan, in his opinion "it is a war".

Dr Abdullah said the manner in which the Badami Bagh incident was projected was not called for and said: "Don’t glorify their attacks".

The Home Minister said the situation in the state had improved considerably and for the first time in a decade Republic Day and Independence Day were celebrated throughout the state.

Referring to the continuing operations to flush out militants in the state Mr Advani said 116 hideouts were identified and smashed after the Kargil war.

During the meeting, expectations from each and every security and intelligence agency during the coming months were also discussed and the need to strengthen the state police was recognised.

On the financial front, the Chief Minister assured that the process of fiscal reforms initiated by the state government would continue. It included further reduction of interest rate being levied by the J and K Bank.

He said the state government was also in the process of finalising its policy for the return and rehabilitation of Kashmiri migrants.

Dr Abdullah avoided a direct reply to a question whether he would resign as the Chief Minister in case the Centre did not consider the state’s financial demands and act upon them.

Earlier, the Union Finance Minister, Mr Yashwant Sinha, said the state government was assured that the Centre would extend utmost assistance in providing financial sustenance to the state’s economy.

Mr Sinha also praised the state government for taking some "tough measures" to shore up its revenues. He also stressed that Jammu and Kashmir was the only state whose negative balance of current revenues was being met by the Centre for the past many years and the Centre was also protecting its plan size.

Minister flays Farooq

NEW DELHI, Nov 17 (PTI) — Minister of State for Civil Aviation Chaman Lal Gupta today lashed out at Jammu and Kashmir Chief Minister Farooq Abdullah for accusing the Centre of not helping the state financially and blamed him for having "miserably failed" in administering the troubled border state.

"When his party (National Conference) is part of the alliance (NDA) government, he should speak with more responsibility. Threats and coercion will not work," Mr Gupta, a senior BJP leader from the state, told PTI here.

He said even if the National Conference withdrew support to the government, "It is not going to make a difference. They joined the government after the elections."

Mr Abdullah had threatened to resign from the Chief Minister’s post if the Centre failed to meet the state’s security and financial needs immediately.

Mr Gupta charged Mr Abdullah with "trying to hide his failures", by making unjustified demands and said that the Centre had given "more money than before" to help the state to meet the security-related expenditure.

"Corruption is the main problem and there is no minister who is not involved in it," Mr Gupta alleged.

Stating that the number of state government employees had increased by over one lakh since Mr Abdullah took over, he said state’s annual expenditure was over Rs 2,600 crore while its revenue earnings were "not even Rs 600 crore".