Source: The Sangai Express
Imphal, September 13:
Even though the Congress led UPA Government had released Rs 609 crores as soft loans in June to help the State over come its financial crisis that has not stopped the State Government from incurring additional over draft.
As on September the over draft of the State Government has shot up to Rs 45 crores.
Disclosing this to The Sangai Express a well placed source from the State Finance Department said that the Centre has not taken the matter lightly and has asked the State Government to submit an expenditure statement to explain the over draft.
Elaborating, the source said that after the soft loan was received, the State Government had issued cheques worth about Rs 100 crores.
Though a whole lot of cheques were issued after this, till date cheques worth about Rs 50 crores have bounced and cannot be encashed, said the source.
The financial mismanagement of the Government was highlighted to the Union Home Minister Shivraj Patil, when he recently visited the State, said the source further.
As serious charges have been levelled against the Government and Finance Department officials on the ground that Section 13 of the Negotiable Instrument Act forbids the Government from issuing cheques, if the Government does not have funds in the State Account, the Centre has taken the matter seriously and sought an explanation, said the source.
On the other hand, internal squabbling have started doing the round within the SPF after matter came to light that cheque drawal authority of Rs 8 crores for the PWD have been released on the sly, said the source.