State economy on the brink of collapse
No cash for payment of salary to employees for March
Source: Hueiyen News Service
Imphal, February 24 2012:
As additional expenditure have been incurred following induction of a large number of employees in different government departments just before commencement of the election to the state Assembly, the state coffer is literally running dry leaving no cash in hand for payment of salary to employees for the month of March.
As the state government is unable to release any kind of funds except the funds related to the centrally sponsored scheme, the economy of the state is now on the brink of collapse.
On condition of anonymity, an employee in the State Finance section, disclosed to Hueiyen Lanpao that even the funds for the works taken up under the Special Plan Assistance have dried up.
The difficulty of the state government to pay monthly salaries regularly to its employees has been lingering on for the last few months.
Even the salaries of the police and other forces under the State Home Department have not been cleared lately.
The reason for the current financial crunch is due to release of the salaries of the employees from the funds provided under the State Plan and other sources on a monthly basis for quite sometime, the employee disclosed.
It is said that the state government has to spend around Rs 50 crores from the State Exchequer in payment of pension to its retired employees and another Rs 250 crores or above on the salaries of its employees in service.