Waheed Para Flags Fiscal Risks of SASCI, Calls for Sustainable Revenue-Driven Development in J&K

Srinagar10 Feb:  MLA Pulwama Waheed Para has raised serious concerns over the design and long-term implications of the Special Assistance Scheme for Capital Investment (SASCI), calling for clarity and accountability from the highest level of the government.

While acknowledging the confidence placed by the elected government in SASCI, Para said the scheme’s structure itself warrants scrutiny.“SASCI may appear to be an easy mechanism to keep funds flowing, but ease should not be mistaken for responsibility. A loan even if interest-free remains a loan, and deferred repayment does not erase the burden; it merely transfers it to future generations,”he said.Drawing an analogy, Para remarked that leaving behind development backed by debt is akin to“handing over a grand house along with a mountain of unpaid liabilities for one’s children to clear.”The MLA pointed out that Jammu and Kashmir continues to face limited revenue growth and deep-rooted structural economic challenges.“In such a context, accumulating long-term liabilities without parallel efforts to strengthen sustainable income streams is fiscally risky and short-sighted,”he cautioned.
Para emphasized that J&K needs a clear roadmap toward financial self-reliance, focusing on durable revenue generation and structural reforms that permanently reduce recurring expenditure. “Schemes that expand debt cannot be a substitute for serious fiscal restructuring,”he said. As an example, he referred to the long-pending demand for the transfer of hydel power projects back to Jammu and Kashmir, as promised in the JKNC’s 2024 manifesto. ”Reclaiming hydel assets could substantially reduce the enormous annual expenditure on power purchases and provide lasting fiscal relief,Para noted.

Concluding, the MLA warned against what he termed“superficial development built on mounting liabilities.”“Such measures may look impressive on paper today, but it is tomorrow’s generation that will be forced to pay the price,”he said.(CNS)