State runs into Rs 58 crore deficit
Source: The Sangai Express
Imphal, July 10 2019:
The State Government, which came out of a crunch economic situation marked by overdraft of Rs 274 crore, has once again run into a financial deficit of Rs 58 crore.
Till yesterday, the State Government's account recorded a deficit of Rs 58 crore and it was adjusted against the advanced wage and means of RBI.
As such, there is no restriction on financial transactions of the State Government as of now.
Yet, the State's financial condition is in a very poor shape, sources informed.
The State exchequer went empty after Rs 410 crore was released for paying salaries to employees and, Rs 110 crore for paying pensions for the month of June and due amount for purchasing power and due loan amounts were paid/repaid.
Although there is no restriction on financial transactions of the State Government, the prohibition imposed by the State Government on withdrawal of funds and appointments until the financial situation improves to some extent still stands, the sources said.
In the meantime, the State Government has been planning to pay salaries for the month of July out of Rs 305 crore which it would receive from the Centre as Central tax share on June 21.Notably, the restriction imposed by RBI on financial transactions of the State Government on June 12 was lifted on June 21 after the State Government received Rs 305 crore from Central tax share and borrowed Rs 400 crore from open market.