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Srinagar: Jammu and Kashmir Finance Minister Muzaffar Hussain Beigh on June 3 proposed sops for farmers, three per cent Dearness Allowance (DA) hike for employees and setting up a state planning board while presenting a "zero-deficit" Budget, though the overall fiscal gap remains at Rs 955 crore during this fiscal.

The state plans to restrict its total spending to the total receipts budgeted at Rs 9,734 crore, which would ensure a "zero-deficit" budget for 2003-04.

However, the Budget leaves an overall fiscal deficit at Rs 955 crore this fiscal, which is half of that estimated for 2002-03.

Beigh announced a list of fiscal reforms including swapping of high cost debts, moving over to Reserve Bank of India's ways and means finance facility in phases, creation of a consolidated sinking fund for fiscal discipline and a switchover to value-added tax system from October 2003.

He also proposed abolition of the state electricity board and setting up of a state planning board.

While announcing a "golden handshake" scheme for Public Sector Unit (PSU) employees, Baig offered a relief to government employees through a 3 per cent hike in DA to state government employees and pensioners, with effect from January 2003, which would be paid in cash.

Beigh also announced a formal tie up with Jammu & Kashmir Bank to provide housing loans to state employees at concessional rates of interest.

He proposed a scheme for providing medical insurance to cover hospitalisation of government employees which has been negotiated with national insurance company.

PTI