State in financial crunch
Source: The Sangai Express
Imphal, January 22 2017:
The Finance Department has stopped the flow of funds including paying wages to employees in light of the worsening financial condition of the State Government.
According to a source, the Finance Department has decided to even stop paying the normal wage to the Government employees albiet for a short period, due to the deteriorating financial condition of the State Government.
The decision has been taken to prevent overdraft which will automatically result in a ban by the RBI.
The source pointed out that there was a slim chance the Finance Department might retract its decision if the financial condition improves during February which is when the State will get its monthly entitlement from the Central Government.
The fund flow to all the Departments have been stopped including the CDA due for the Engineering Department, the source added.