Budget reflects growing debt burden
Source: Chronicle News Service / Dr Chinglen Maisnam

Imphal, July 25 2022: Manipur Budget 2022-23 reflects that the state's finances are in dire straits with growing debt burden.

The state is in a serious financial crisis.

It had fallen into the financial crisis much before the Covid pandemic.

The crisis deepened as the pandemic gripped the state.

The Budget speech has rightly admitted that state's economy is facing a serious crisis owing to Covid pandemic.

The budget speech rightly pointed out, "...the pandemic which started towards the end of financial year 2019-20 had a massive impact on the state.

The pandemic disrupted the lives and livelihood of the people.

The period also witnessed considerable reduction in resource receipts.

The impact was felt during financial year 2021-22 as well.

The cumulative impact of these years has posed a serious challenge to our fiscal position" .

The budget needs to focus on reviving the economy by pumping money to revive it.

However, the budget lacks in addressing this critical issue.

The state's outstanding fiscal liabilities have touched the record figure of Rs 16,039.491 crore.

It increased from Rs 13,183.65 in 2020-21 to Rs 11,611.35 crore in 2022-23 .

The internal debt also increased from Rs 8291.18 to Rs 1611.35 crore.

The outstanding fiscal liabilities as percentage of the GSDP as per the Budget document increased from 34.99 per cent in 2020-21 to 37.92 per cent in 2022-23.One main reason for the high amount of borrowings would be large repayment commitment.

The repayment has to come mainly from fresh borrowing.

If the state continues to borrow, the state government will have to pay more interest.

This will not only slow down economic growth but also burden future generations.

Amidst the revenue constraints, the budget has announced a limited measures focusing on inclusive growth.

The Budget has not made it clear from where funds will come to meet the expenditure.

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