TODAY -

State facing ₹ 800 cr crisis-induced revenue loss
Source: Chronicle News Service

Imphal, March 04 2024: Chief minister N Biren, who is also in-charge of finance, said that the state is suffering revenue loss of around Rs 800 crore due to the crisis lingering for 10 months.

In Monday's session of the 12th Manipur Legislative Assembly, Congress MLA Surjakumar Okram moved a calling attention motion on impact of the crisis on economy of the state while enquiring initiatives taken up by the government to address the issue and also suggesting detailed assessment by an expert committee.

In response, chief minister N Biren said that as the state is facing a crisis situation it is bound to affect every sector.

Despite the challenging situation, the government is ensuring regular payment of salary to employees and monthly entitlements to the pensioners apart from keeping price of petroleum products unchanged and ensuring availability of commodities through transportation by train and keeping the Khongsang road operational.

He said that the Central government has been providing assistance and approved Rs 400 crore assistance for the first phase, out of which Rs 200 crore had been released already.

The Centre is also providing assistance towards training of IRB recruits as well.

The GSDP of the state was below Rs 100 crore in the initial phase of the crisis but the situation is improving, he maintained, while opining that the revenue loss figure might exceed the present amount of Rs 800 crore.

As for the actual impact on economy, it would take time to present a definitive figure since normalcy has not returned yet and might be ascertained next year though a detailed assessment as all departments are conducting study to assess revenue loss.

Once the study is completed, the government will look into constitution of an expert committee, he assured.

Biren further said that the government collected Rs 2324 crore tax in 2022-23, primarily due to markets and other sectors unaffected totally by the crisis.

Increasing trend in government expenditure shows effective functioning of the government and the economic impact would not be as high as 'expected.

There was no downfall in Expenditure during Covid-19 pandemic too.

The state has been receiving financial boost after the Centre enhanced the tax devolution amount to Rs 600 crore and it will ensure fast recovery of the economy, At the same time, displaced people in relief camps are taking up income generating activities to some extent with the government arranging sale of products of the displaced people, he said.

The CM also made an appeal against illegal tax collection on roads while remarking that the government is tolerating such activities keeping in view of the public sentiment but might be constrained to take action in case of excesses committed.

He also assured the House to bring up the issue of air fare hike amid the crisis in the state while confiding that the government is taking up measures related with exemption of income tax in view of the crisis in the state.

While moving the motion, MLA Surjakumar highlighted the impact of the crisis on the state's economy, stating that prior to outbreak of the violence, there were around 1878 delivery service staff for different e-commerce and courier service in the state which post-crisis, dropped to only 37 service providers.

Noting that agriculture is one of the sectors worst affected by the crisis, he suggested proper assessment on 3.4 per cent dip in GSDP apart from pointing out around 3000 valley-based drivers are out of job due to the crisis.

Several organisations including Confederation of Trade and Commerce and Industries had sought income tax exemption for at least 10 years, he said and sought attention of the House on possibilities of loan waiver for the crisis-hit people.


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