CM Business Interest Relief Scheme Jammu & Kashmir under Budget 2018-19

Published Date - 16 March 2018 04:58:56 Updated Date - 16 March 2018 05:02:29

Jammu & Kashmir finance minister, Haseeb A Drabu, on Thursday presented his fourth budget in J&K legislative Assembly.

On Thursday, 11th January 2018, while announcing the state budget 2018-19, the Finance Minister of the state has announced about the scheme. The scheme will be effective for next two years.

In his 4th Budget presentation in a row, the Finance Minister of the state Jammu & Kashmir, Economist Dr. Drabu has launched a new scheme namely CM’s Business Interest Relief Loan for the businessmen in the state. Under this scheme borrowers who have taken business loans will have to bear only 2/3rd of the monthly interest payment while 1/3rd will be paid by the state government.

Jammu&Kashmir govt. also ensures that it will not encourage the people to not pay their loans. While announcing the Jammu & Kashmir Budget 2018-19, the state govt. has also announced the Assured Career Progression Scheme. This career progression scheme will provide benefits to all Gazetted Cadres of all engineering departments.

Jammu & Kashmir Budget 2018

With estimated cost of Rs. 80, 313 Cr, this year Finance Minister has presented annual budget. This year the state has allocated highest amount of money to the capital expenditure by far. State government has allocated Rs. 29, 128 Cr to the capital expenditure while Rs. 51, 185 CR will be allocated to the revenue expenditure.

Along with this scheme the FM has announced about the 1% Dearness Allowances to the employees for their performances at work. He thanked them for their efforts they have put into their work while announcing about the DA. The new DA will be effective from 1stof April 2018.

Features of the Scheme:

The important features and highlights of this scheme are as follows:-

  • Under this scheme, the state govt. will pay one third while borrowers have to pay two-third of the monthly installment.
  • Jammu & Kashmir  govt. will provide this amount from CM’s Relief Fund and PM Interest Subvention Scheme.
  • This scheme is applicable for 2 calendar years i.e from Jan 2018 to Jan 2020.
  • Accordingly, this scheme will benefit several industries, trade bodies and business fraternity and will also give them fiscal space.
  • Moreover, various banks will also get benefited from this scheme as this scheme will help banks in their Non Performing Assets (NPA) build up.
  • Banks can avail these benefits only after a percentage point reduction in the average interest rate on the restructured folder.

The state govt. has launched this scheme in order to provide huge support to the borrowers. In addition to this, this scheme will help in flourishing trade and business activities across the state. Furthermore, Jammu & Kashmir govt. will not inadvertently encourages the culture of reneging on the loan commitments.


This year state budget has focussed on development and growth of the state. Also the budget shows strength of the local government bodies as well. CM along with other ministers is hopeful with the capital expenditure allocation in the budget 2018 and the some of the panchayet level allocations as well.

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