Jammu: Peoples Democratic Party legislator Waheed-ur-Rehman Para on Tuesday raised serious concerns over the extension of SASCI loans to Jammu and Kashmir, warning that the structure of the scheme could saddle future generations with unsustainable debt.
Para said that while the elected government has expressed confidence in the SASCI mechanism, its design requires clarification at the highest political level. He said questions surrounding the scheme should be addressed directly by the Chief Minister.
Para explained that SASCI, a structured market-linked borrowing instrument, may appear to offer easy access to funds but remains a loan that must ultimately be repaid. He said deferring repayment does not eliminate liability but merely transfers the burden to future generations.
Drawing an analogy, Para said the approach was akin to leaving behind assets along with unpaid debt, adding that such financial decisions risk compromising the economic stability of the next generation. He cautioned that in a region like Jammu and Kashmir, where revenue growth remains limited and structural economic challenges persist, accumulation of long-term liabilities without parallel income expansion is fiscally hazardous.
The PDP legislator said Jammu and Kashmir requires a clear roadmap for sustainable revenue generation and financial self-reliance rather than increased dependence on borrowed funds. He argued that structural reforms capable of reducing recurring expenditure should take precedence over borrowing-based development models.
As an alternative, Para referred to the issue of hydel power projects, stating that transferring control of such assets back to Jammu and Kashmir could significantly reduce annual expenditure on electricity purchases and provide long-term fiscal relief.
He warned that development driven by debt may appear attractive in the short term but would impose heavy costs on future budgets. Para said superficial growth built on mounting liabilities risks weakening the region’s financial foundations over time. [KNT]
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