Source: The Imphal Free Press
Imphal, November 09:
The expected ban of the Reserve Bank of India (RBI) on encashment of state government bills and cheques has been effected today, according to a reliable source in the state finance department.
According to the source, as of yesterday (November 9), the state government overdraft position with the Central bank reached Rs 61 crore.
On the previous day (November 7), it stood at Rs 48 crore.
It is worth mentioning that utilization of funds by the state government so far has been on the basis of a vote on accounts (VoA) for four months for the state during the last Monsoon session.
The VoA expires this month.
The winter session of Parliament takes off on November 19.However, it is doubtful if the budget estimate (BE) of the state can get through during the winter session which normally winds up early, said the source who feared that if it gets stuck up, the government may not be able to release its funds after December since no transaction will be possible.
In such an eventuality, running the administration will be extremely difficult, the source said.
On the other hand, major chunk of the state government employees have not so far drawn their two months salaries on account of the cease-work strike launched by the Joint Administrative Council (JAC) of AMTUC and AMGEO for the last three weeks.
Meanwhile, state economists have started pressing panic buttons on the imminent financial adversities likely to be faced by the state.
Speaking to IFP, an economist expressed serious concern about the acute difficulties the people are likely to face as the majority of the employees have yet to receive their salaries even as the prolonged rainfall in the harvest season has started damaging crops in the fields.
The Imphal market has felt the impact as it has already recorded a slump in trade and business of late.