Is Jammu & Kashmir Inching Towards A Debt Trap?

In the Kashmiri language when somebody eats too much, he or she is referred to as Bateh-Jin (glutton). It is very difficult to find the origins of this word. We can however guess that it describes a situation when a person or a nation consumes too much and still the wants are insatiable. The Kashmiri language is full of creative words and idioms that meticulously describe a certain situation. The word Bateh-Jin is one of these wonderful words.

- Syed Suhail Yaqoob

Kashmir has witnessed many horrific famines throughout history. We have frowned on people consuming too much as it might lead to famine and hunger. Open a book on economics or religion about debt. Both of these desist debt trap because it, in long run, results in recessions, poverty, and stress in the population. The world recession of 2010 that caused a spike in unemployment and poverty was due to the debt trap. Further both economics and religion is clear that too much consumption is bad in the long run and moderation in consumption is required. The basic economics suggests that debt can only arise when people or societies consume more than they produce.

DEBT TRAP

Are people of Kashmir gluttons? Do we consume too much? The statistics about the state confirm the point. The debt to gross domestic state product was as high as 45 per cent in 201516. Further, the data states that the fiscal deficit has remained as high as 5.5 per cent during the decade. It is projected that if the current scenario keeps on for a long period of time the state’s revenue deficit will be close to 6 per cent and the fiscal deficit will be 11.96 per cent by 202425; a 26 per cent increase in its outstanding liabilities.