Manipur Budget for 2025-26 : Unequal sharing of resources
- Part 2 -

K Timothy Zimik *

This is one of the main reasons for big divide between the valley and the hills of Manipur. The deprivation of revenues to the hill districts has led to complete economic backward-ness and marginalization of the hill people of Manipur. Being equally entitled to, the hill people have been demanding that the resources of the state must be shared equitably between the Imphal valley and the hills of Manipur.

It is critically important that the hill people are actively involved in budget exercise of the state to ensure that revenues of the state are shared between the hills and the valley in a fair manner. The hill people of Manipur are equally entitled to the resources of the state of Manipur.

The President of India, the Central and the State Governments, the Governor of the State and the Hill Areas Committee are mandated by Article 371 C of the Constitution to ensure that ninety percent of the total area of the State does not remain underdeveloped, disempowered and marginalized. But these authorities have failed.

Therefore, the hill people should stand on their own feet and take their rightful share. No charity. No mercy here.

BUDGET 2025-26

The Finance Minister of India has presented the Manipur's budget (Vote on Account) estimating the total receipts at Rs 35,368 crore for the year 2025-26. The revenue receipts are estimated at 27,231 crore and capital receipts at 8,137 crore. The State's own tax and non-tax receipts are estimated at Rs.2,634 crore and Rs. 400 crore respectively.

The FM has estimated the total expenditure of Rs. 35,104 crore for the fiscal year 2025-26. Out of this, the revenue expenditure is estimated at — - Rs. 21,512 crore which are compulsorily used for payments of salary, pensions, interest, discharge of internal debt, office expenses and other revenue expenditure. The revenue expenditure does not create new assets. The capital outlay is estimated at Rs. 7,773 crore which are earmarked for creation of new assets.

In this article, let us focus on capital outlay and see how this capital outlay of Rs. 7,773 crore is being spent. If this amount of Rs.7,773 crore is equally distributed among the 16 districts of Manipur, then each district will get Rs. 486 crore which will be used for the creation of assets in the form of new educational institutions, hospital buildings, office buildings, bridges, roads, hydropower projects, water supply projects, etc.

If the capital outlay of Rs. 5,346 crore (Rs. 486 x 11) crore is actually spent in the hill districts of Noney, Kamjong, Pherzawl, Tamenlong, Ukhrul, Churachandpur, Kangpokpi, Senapati, Chandel, Jiribam and Tengnoupal (being their yearly share), these districts will be transformed very quicky in terms of infrastructures, institutions and economic development.

To mention a particular sector as an example, the capital expenditure allocated for rural develop. ment programme is Rs. 1,673 crore for creation of assets and the revenue expenditure for the same rural development programme is Rs. 2,946 crore.

Similarly, the revenue expenditure for education, sports, art, culture is Rs. 3,248 crore whereas the capital expenditure allocated for this sector is Rs. 125 crore only. Whether the said capital outlay of Rs. 1,673 crore or 125 is distributed equally among all the districts of Manipur and new assets are created in the said districts!

And if this is not done, then why such injustice to the hill districts? The sector-wise / department-wise capital outlay as per Manipur budget for the financial year 2025-26 is as given The main sectors listed above account for about 92% of the total capital expenditure of the state of Manipur in 2025-26 (source: Government of Manipur - Annual Financial Statement 205-26 as laid before the Parliament).

The most important issue being raised here is whether the budget amounts allocated to each sector are equally distributed among all the districts of Manipur in a fair and judicious manner (keeping in view of the hill people's 51% entitlement to the resources of the State) and if so, whether such allocated funds are properly utilized in each district without siphoning off or diversions.

In the last 50 years plus, the hill areas had not received their rightful share of revenues/ resources. If one visitsthe villages and the district headquarters of hill areas, he will find that there are hardly any state government interventions in these places.

Zero funding for village authorities unlike Panchayati Raj Act in the valley, defunct government schools without students and teachers, no drinking water in dry season, near zero government institutions and no basic infrastructures worth the name.

Had the centrally sponsored programmes such as PMGYS, MGNREGA, NFSA, RTE Act, etc. not come to these places, then the hill people of Manipur would have been completely marginalized beyond redemption and starving. Whether it is revenue or capital expenditure, almost the entire resources are invested or spent in the Imphal valley. Mark this. The year 2025-26 will not be different.

Apart from the above budget details, the key features of Budget 2025-26 at a glance shows the following Imphal centric projects: Ongoing Externally Aided Projects (EAP) in Manipur • Manipur Water Supply Project - Project Cost : Rs. 3,183 crore. Funded by New Development Bank.

A project covering Imphal valley and hill areas.

o Sustainable Forest Management for water resource conservation - Project Cost: Rs. 170 crore. Funded by KfW.

o Dam Rehabilitation and Improvement Project (DRIP)-II-Project Cost: Rs. 311 crore. Funded by WB-AIIB.

o Rejuvenation of Lamphelpat Waterbody - Project Cost: Rs. 650 crore. Funded by New Development Bank.

o Integrated Sewerage Project for Imphal City Phase-II - Project Cost: Rs. 1,136 crore. Funded by New Development Bank.

Upcoming Externally Aided Projects (EAP) in Manipur.

o Imphal Ring Road - Project Cost : Rs. 1,660 crore. Funded by Asian Development Bank.

o Concrete Roads with pavements in Imphal City - Project Cost: Rs. 3,647 crore. Funded by AIIB.

o Manipur Infotech Development Project (MIND) in Imphal - Project Cost : Rs. 550 crore. Funded by WB.

o Manipur State Road Improvement Program-Project Cost : Rs. 32 crore. Funded by Asian Development Bank.

The above Projects cover only the Imphal valley areas of Manipur except a portion of hill areas under Manipur Water Supply Project. The hill areas are just left out in the cold as in the past 53 years.

Conclusion

When the hill people are economically separated, the call for co-existence and mutually beneficial partnership does not make any sense to them. The valley and the hill people of Manipur need to sit down and work out a way to live together in harmony, shared prosperity and peace.

The views expressed in this article are his personal views.

This Article was published in The Sangai Express and The Aja Daily on the 30th October, 2020. This article is an updated version.

Concluded...