Despite constraints CM hums development tune
Source: The Sangai Express

Imphal, March 06 2013: Conceding that slow-down of the Indian economy has affected the State's 'Plan receipts' for the current fiscal, Chief Minister Okram Ibobi Singh said endeavour of the Government would be to rationalise and prune expenditures along with augmenting resources to ensure minimal impact on Plan projects and schemes.

Presenting the State Budget (tentative) for the year 2013-14 on the first day of the 10th Manipur Legislative Assembly's fourth session today, the Chief Minister, who also holds the Finance portfolio, said that consequent to the impact of slow-down of the Indian economy pressure on state's resources is imminent.

Highlighting that over the last few years, sustained Government investments have brought about visible improvement in the social and economic environment of the state with agriculture and service sectors recording consistent growth, he said anti-poverty and employment oriented programmes, as well as programmes for the weaker and backward classes have been expanded along with focus on Human Resource Development Programmes through skill development initiatives.

Holistic and balanced development of the state is being pursued vigorously.

A strong thrust is on completing ongoing major irrigation projects, namely, Dolaithabi and Thoubal, in the state considering that it is crucial for optimizing use of our water resources and delivering the benefits of substantial investments to our rural people, said the CM who exuded confidence that early completion of key infrastructure projects like the Jiri-Tupul-Imphal Railway Line project and up-gradation of NH-2, NH-37 and Imphal-Moreh section will provide a strong impetus to the development momentum.

asserting that during the ensuing fiscal year, priority will be on improving power transmission and distribution network and augmenting drinking water supply besides expanding irrigation potential by taking up new irrigation projects, he assured the members that a detailed presentation would be placed after finalization of the Plan size.

With regard to the State's state of economy, the Finance Minister pointed out that inspite of sluggish domestic economic environment, the gross State domestic product registered growth of 6.76 per cent in 2011-12 compared to the previous fiscal.

Citing special development initiatives the Government had undertaken for positive development, he listed agriculture sector as the key driver of the growth.

projecting economic growth of the State at 7.20 percent during the current fiscal year, he observed that sustaining growth will depend on how the overall fiscal situation unfolds in the state over the next year, and how the investment activity, which will be primarily government driven, picks up.

Describing the State's financial condition as extremely critical and challenging with reference to the state's negative opening balance of Rs 495 crore, Ibobi said that apart from lacking resources to boost the State's economy with hardly any private sector presence, the State Government was also compelled to invest heavily on the Police establishment in order to tackle the law and order situation arising out of militant groups' activities and keeping the National Highways operationally secure in the face of blockades and bandhs.

The total expenditure on maintenance of police and State para military forces has more than doubled from Rs 351 crore in 2009-10 to Rs 795 crore in 2011-12, explained the CM and confided that expenditure on the State police is estimated to constitute 18 percent of the total estimated Non-plan Revenue Expenditure of Rs 4453 crore during 2012-13 .

"Our effort to devolve more powers to the Autonomous District Councils and augment the much needed physical, social and administrative infrastructure in the Council areas have also contributed significantly to the growth in expenditure," he said.

Citing enhanced expenditures on security forces and infrastructure development of ADCs for increase in plan and non-plan spending over the last two to three years, he put plan expenditure increase to 2l per cent from Rs 2305 crore in 2009-10 to Rs 2779 crore in 2011-12 .

It is estimated to be Rs 3413 crore in 2012-13 including central Plan Schemes of Rs 771 crore, an increase of 23 per cent over 2011-12, explained the CM who affirmed that the State Government's policy to curb non-plan expenditure and austerity measures would be persisted with in the coming years.

The CM also sought approval of the House on 36 supplementary demands and two appropriation Bills amounting to Rs 580.15 crore for year 2013-14 .

The supplementary demands are necessitated largely on account of the payment of salaries and arrears of employees due to implementation of Revision of Pay (6th Pay Commission), higher allocation of fund under NEC and release of more funds under centrally sponsored schemes, central plan schemes, etc., he highlighted.

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