State Govt's debt soars to over Rs 16,000 Cr
Source: The Sangai Express

Imphal, September 10 2026: The total outstanding public debt of the State Government soared to Rs 16,193.78 crore at the end of 2024-25, according to a report published by the Comptroller and Auditor General (CAG) of India.

Out of the total debt, Rs 10,638.89 crore (80.49 per cent) should be repaid within the next ten years.

Altogether 7,729 Utilisation Certificates against the grants given by the State Government involving an amount of Rs 12,390.48 crore were pending as on March 31, 2025, with the oldest UCs pertaining to the year 2003-2004 .

Moreover, 2,282 Detailed Countersigned Contingent (DCC) bills against the amount drawn by Abstract Contingent (AC) bills amounting to Rs 9,448.82 crore were outstanding as on March 31, 2025 .

There were 27 Annual Accounts in respect of eight autonomous bodies/authorities which had not been received for the period from 2019-20 to 2024-25 .

Citing the mounting public debt, the CAG has recommended the State Government to adopt a disciplined borrowing strategy focused on asset creation, strengthen revenue mobilisation, control committed expenditure and strictly adhere to Fiscal Responsibility and Budget Management (FRBM) norms.

It also recommended the State Government to draw up an action plan to ensure that departments and implementing agencies submit outstanding UCs promptly.

The Government has also been recommended to ensure timely submission of DCC bills against the unadjusted Abstract Contingent (AC) bills.

The CAG report has also recommended the State Government to instruct Autonomous District Councils (ADCs) and other authorities to submit Annual Accounts regularly.

The fiscal deficit during 2024-25 was 4.16 per cent of the Gross State Domestic Product (GSDP) against 3 per cent as per the project of the Manipur FRBM Act during the year.

During 2024-25, the State Government incurred an expenditure of Rs 96.69 crore from the State budget for repayment of principal amount of loans and interest taken by Planning and Development Authority and Manipur Police Housing Corporation which were not reflected in the budget.

The CAG report said that the State Government overstated Revenue Surplus and understated Fiscal Deficit by Rs 0.61 crore due to misclassification of revenue expenditure as capital expenditure.

During 2024-25, Revenue Receipts of the State increased to Rs 16,775.60 crore, Own Tax Revenue to 1,611.74 crore and Non-Tax Revenue to 476.51 crore.

During the same year, grants-in-aid received from the Government of India also increased by 5.54 per cent and the State's share of Union Taxes and Duties also increased by 13.94 per cent.

According to the CAG report, interest payment increased by Rs 45.65 crore (4.67 per cent) from 976.58 crore in 2023-24 to Rs 1022.23 crore in 2024-25 .

Expenditures on salaries and wages was Rs 5,913.18 crore in 2024-25 and accounted for 37.75 per cent of Revenue Expenditure.

There were 138 incomplete projects which were due to be completed by March 31, 2025 involving a total estimated cost of Rs 946.11 crore on which an expenditure of Rs 473.53 crore had already been incurred.

The CAG report pointed out that delay in completion of works invites the risk of escalation in cost of the works besides depriving the benefits of the projects to the State.

It also recommended the State Government to rationalise revenue expenditure and committed liabilities, better targeting of subsidies, and controlling interest payments to create fiscal space for developmental spending.

The State Government has also been recommended to keep up the trend of achieving the projections on major fiscal parameters made in the Manipur FRBM Act through prudent financial management and to increase the Revenue Surplus, and to keep fiscal deficit within the limit of the projection of the Manipur FRBM Act.

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