Grim state even if overdraft cleared
Source: The Sangai Express
Imphal, June 14 2019:
Even if the overdraft amount of Rs 274 crore faced by the State is cleared by virtue of the Central share fund, additional funding will be necessary in order to pay the salaries and pensions of the employees and pensioners working under the State Government.
RBI effectively stopped all forms of fund sanction for the State on June 12 and even if the overdraft is cleared via Central share funds amounting to Rs 305 crore which will be given to the State, it will be virtually impossible to pay the salaries of all employees with the Rs 31 crore left from the said fund.
As the State Government needs to pay various debts, interests etc, the funds remaining in the State Government account will be a lot less which in turn will raise the need for the Government to either acquire some sort of a package from the Centre or borrow funds from the open market.
Even if the overdraft is cleared, the account balance of the State Government will still be in the negative stage and as such, the financial crisis will continue for atleast four months, as per a reliable source.
The source explained that around Rs 310 crore is required for giving salaries to employees and around Rs 110 crore is required for giving pensions to the pensioners every month.
It may be mentioned that Deputy Chief Minister Y Joykumar, when he had the portfolio of Finance as well, claimed that the financial situation of the State can be attributed to less funds for Central sponsored schemes, reduction in Revenue Deficit Grants etc.
On the other hand, Chief Minister N Biren is currently in Delhi and he might even urge the Central leaders to sanction some funds for the State, the source added.