State stares at grim prospect of overdraft
Source: The Sangai Express
Imphal, April 01 2012:
Even as the new finincial year 2012-13 has commenced today, the Okram Ibobi Singh led Congress Government is likely to face a financial overdraft during this fiscal year as the State is currently reeling under fund deficiency.
On the last day of the fiscal 2011-12 yesterday, the State witnessed huge withdrawal of funds, said an informed
source.
With the State Government implementing the 6th Pay Commission during the last financial year, the State witnessed increase in Government employees' salary from Rs 152 crore to Rs 200 crore per annum, it added.
Excluding the funds coming from the Central Government, there is only Rs 250 crore left in the account of the State Government.
As such, there is apprehensive that not even a single penny is left in the account of the State Government as Govenment employees' salary for the month of February and a huge amount used in various development works have been withdrawn till yesterday.
Sensing the unhealthy financial position, the State Government had already banned acquisition of new vehicles by different Government Departments and has been taking up different steps to overcome the situation.
Sunday being a holiday, banks have not yet given the exact amount which has been withdrawn till yesterday.
The banks will despatch a report to the Reserve Bank of India within a few days in this regard, added the source.
Maintaining that the State is capable of contributing only about 10 pc to the total budgetary amount of Rs 6000 crore from its different resources, the source added that the proposal to acquire new vehicles for all the newly elected MLAs has also been cancelled due to the bad financial condition.
The source further said that the new plan size is likely to be fixed next month.
Informing that the O Ibobi Singh Government is likely to expand on April 9 or April 12, another source said that only four Cabinet Ministers are likely to be inducted in the second expansion.