TODAY -

CM promises to table financial white paper
Source: The Sangai Express

Imphal, December 19 2019: Chief Minister N Biren today stated on the floor of the State Assembly that a financial white paper for five years would be tabled soon.

The Chief Minister made this statement to a query raised by Opposition MLAs Kh Joykisan and K Meghachandra whether the State Government is facing any financial crisis.

Biren stated that the State Government has been facing certain financial difficulties but added that it cannot be termed a crisis.

The Government has been working to enhance the State's revenue so as to ameliorate the economic situation, said the Chief Minister.

The annual budget for 2019-20 which was passed by the State Assembly has a deficit of Rs 1405 crore.

The monthly Central tax share which the Centre should give to the State is Rs 416 crore.



CM promises to table financial white paper
CM promises to table financial white paper


But there was a gap of around Rs 2602 crore between what the State should get from the Central tax share and what the Centre actually released to the State.

This is one financial difficulty being faced by the State Government, Biren said.

Even though the State Government has been facing financial difficulties, departments published their annual work programmes and different development projects are being implemented.

Development works like construction of roads, water supply plants etc cannot be implemented without work programmes, he said.

For the current financial year 2019-20, expenditure sanction of Rs 2045 crore has been granted while expenditure permission has been granted for Rs 1596 crore.

The State Government running into overdraft is not something new.

When the situation of overdraft crosses 14 days, RBI bans all financial transactions of the State Government.

Despite all the financial difficulties, the State Government never shies away from executing what it promised to the people.

Rice at subsidised rate and medical assistance under CMHT are being given to economically weaker families, Biren said.

He went on to claim that the Government's Go to Hills mission has bridged the gap between the hills and the valley.

As promised by the Government, women markets have been constructed at hill district headquarters and roads have been black-topped, Biren said while appealing to all Members of the House to inform the Government if they know any one who indulge in fraudulent practices like misappropriation of public money.

Whereas the State was supposed to receive Rs 416 crore as Central tax share for the month of April this year, the State received only Rs 305 crore.

Likewise, the State received Rs 305 crore in May, Rs 305 crore in June, Rs 315 crore in July, Rs 343 crore in August and Rs 343 crore in October, which is lesser than the amount which the State is supposed to receive from the Centre, Biren informed the House.

Moreover, the amount sanctioned by the 14th Finance Commission was also below the amount which the State was supposed to get, continued the Chief Minister.

Despite all these financial constraints, employees' salaries as well as other liabilities are being released in time.

Half of MLA Local Area Development Fund has been already released.

The State Government has been managing its financial transactions after taking into consideration the available balance and RBI's possible ban in case the Government runs into overdraft, Biren stated.

Henglep road has been included in work programme for construction under North East State Road Investment Programme.

The State Government had already started constructing the road by investing Rs 54 lakh last year followed by another Rs 51 lakh this year.

CDA for 2018-19 would be released in January next year, he said.

Underscoring the urgent need for enhancing the State's revenue, the Chief Minister informed the House that the State's annual budget ran into a deficit of Rs 437 crore in 2015-16, Rs 374 crore in 2016-17, Rs 834 crore in 2018-19 and Rs 1404 crore in 2019-20.Against Rs 6336 crore proposed to the 14th Finance Commission, the State received only Rs 4992 crore.

From 2015-16 till 2019-20, there is a shortfall of Rs 3669 crore.

Meanwhile, the Central Government, with a view to enhance revenue collection, has initiated due process to hike excise duty as well as the VAT imposed on petrol and diesel.

There is also a plan to hike the tax imposed on State lotteries.

To avoid any lapses or loopholes in revenue collection, the State Government too has initiated due process to carry out all kinds of revenue collection online.

The amount collected as GST has increased by 8 per cent as compared to last year.

At the same time, the State Government has been working to secure externally aided funds so that more development projects can be implemented, Biren informed the House.

Earlier raising a call attention motion, Joykisan quoted a ruling MLA who reportedly told the media that the State Government was not paying any liability for the works executed under the Works Department's work programme of last year, and that MLAs have not been getting any fund except MLA Local Area Development Fund.

He also expressed deep concern over media reports that the State Government's Finance Department has collapsed.

K Meghachandra demanded a white paper on the current financial position of the State Government.


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