Imphal, November 10: Government today appealed to the employees to suspend their agitations till December 31 so as to enable the Government to make final preparations of the State Budget 2001-2002 which is to be passed during the Winter Session of Parliament from November 19.The appeal was made during a press conference attended by Divisional Commissioner I Ch Birendra, Information Secretary S Budhachandra and Special Secretary Finance RK Nimai at the DIPR office premises today.

Budhachandra said development work could not be taken up as both the Plan and Non Plan fund are exhausted in paying salaries.

Urging the employees to suspend the strike, he assured that Government will issue an order as per the recommendations of the Committee of Officers in Dec.

When queried why employees have rejected Government's offer to give the demands in April next year, he said they might be mistaking it as a delaying tactics.

RK Nimai said if the employees demands are given, Government will have to bear additional expenditures of Rs 41.19 crs in paying HRA, TA, NPA, Leave Encashment and SP.

Another Rs 139.75 crs is needed for paying pensions, he added.

The State had a deficit of Rs 471 crs at the beginning of the 2001-2002 financial year.

He said that the RBI lifted its ban in the third week of April this year after the Centre released a grant of Rs 253 crs to the State.

After the implementation of the 5th Pay Commission, Government used up Rs 260 crs in paying arrear of employees during 1999-2000.Before the 5th Pay Commission, only Rs 400 crs was spent in paying salaries of the employees.

After the revision, the salary expense shot up to Rs 700 crs annually, he added.

When asked whether the Finance Department official did not foresee that the State will face financial crisis after the revision, Nimai replied that the Government went ahead with the revision even as the Finance Department hinted to this effect.

He said the Government requires an amount of Rs 1048.33 crs to pay salaries, pension, interest and maintenance till the 13th month of the current financial year.

It is already facing a deficit of Rs 222.68 crs to make up that amount, he added.

He said that the State's share of Rs 825.64 crs received from the Non Plan fund includes Rs 357.29 crs released by the Centre to stave off the deficit and another Rs 125 crs sanctioned as one time package.

The State debt till March this year is Rs 1668.32 crs.

Above this, interest dues of Rs 811.68 crs and Rs 548.664 crs for loans from financial institutions and the Centre respectively are still pending payment.

He said the Government is currently using 50 percent of the Plan Fund.

Despite all this, the Centre has held back 40 percent of all loans as saving.

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