Imphal, August 08: Considering the precarious financial condition of the state, the state governor-in-council has taken a decision not to release any government funds other than for payment of salaries and pensions until such time as a financial bail-out package comes from the Centre.

The Governor-in-council, during a meeting held this afternoon, also decided to continue the austerity measures begun by the popular government.

The meeting, attended by the advisors to the Governor, N Ram Mohan and K Kipgen, chief secretary Rakesh, and top officials of the concerned departments, also discussed, apart from the financial position and austerity measures, the law and order situation in the state.

According to reliable sources, the meeting decided that until such time as the Centre announces a financial bail-out package, by waiving the conditions holding up sanction of funds for the state, funds would not be released for any purpose other than payment of salaries and pensions.

The meeting also agreed in principle to further extend the austerity measures begun by the popular government, particularly withholding of certain allowances paid to the government employees.

However, as the measures imposed by the previous government will continue to be in effect till September, it was decided that a final decision on whether to extend them or not would be taken in the last week of September.

It is estimated that the government will be able to save around Rs 29.3 crores per year by withholding payment of House Rent Allowances to employees and another Rs 8.09 crores by withholding Transport Allowances.

Withholding payment of non-practicing allowance to medical and veterinary doctors will save Rs.95.5 lakhs and Rs.20.10 lakhs, while withholding special pay will save Rs 15 lakhs.

The total number of state government employees, excluding those under district councils and grant-in-aid institutions, is 74,353 at present.

While reviewing the law and order situation, the meeting discussed various measures to be taken for restoring the situation resulting from the ceasefire extension decision and its subsequent review to normal as fast as possible.

The question of strategic planning for the protection of national highways and tackling insurgency was also discussed.

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