State stares at financial woes
Source: The Sangai Express
Imphal, August 05, 2012:
Even though the Plan outlay for the current financial year has been finalised following which the annual Budget was passed by the State Assembly, the State's financial condition is not healthy at the moment.
Nevertheless, the Government is hopeful that the situation will improve next month.As reported earlier, the current fiscal started on an ominous note with a deficit of Rs 483 crore.
The State Government, in its efforts to make up the deficit, faced a very difficult financial condition.On account of the harsh financial condition, the Government has not released funds allocated to different departments, informed a reliable source.
At the moment, the Government is releasing funds only for payment of salaries, pension, loan interest and Rs 15 crores every month for purchasing power.
The Government has been restricting itself to release funds for other purposes.
Though it is said that funds are being released for payment of salaries, employees of some departments have not been getting their salaries.
The State Government is finding it hard to cope with the existing financial condition even after pooling the monthly funds allotted to the State by the Centre.
On the other hand, the Planning Commission is yet to release Rs 600 crores under the Special Plan Assistance entitled to the State.
The situation is expected to improve if the Ministry of Water Resources releases Rs 670 crores under Accelerated Irrigation Benefit Programme for Thoubal Multipurpose Project, Khuga Project and extension of Dolaithabi Project.
Nevertheless, the State Government released Rs 30 crores for certain development works last month, added the source.