Centre releases Rs 305 crore tax share
Source: The Sangai Express

Imphal, June 20 2019: As the Central Government has released Central tax share of Rs 305 crore to the State Government, the Government is most likely to cope with the financial overdraft tomorrow.

Notably, RBI imposed a ban on all financial transactions of the State Government on June 12 after it ran into an overdraft of Rs 274.48 crore.

Once the Central tax share of Rs 305 crore reaches the State Government account, the overdraft would be done away with.

A clear picture on RBI's ban on financial transactions would be known by tomorrow, informed a source.

Meanwhile, the State Government's proposal for an advance loan of Rs 400 crore has also been announced by the Ministry of Finance.

The same amount may be transferred to the State Government account tomorrow, said the source.

Saying that the State Government is now in a position to pay salaries of its employees, the source said certain restrictions may be imposed on releasing Government funds in view of the State's unsound financial situation.

The State Govt spends Rs 410 crore per month in paying salaries to employees and another Rs 110 crore per month in paying pension to pensioners.

In the wake of RBI's ban on financial transactions, the State Government halted all recruitment processes of regular, contract and casual employees.

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