CM commits to improve power, drinking water and road connectivity
Ongoing projs to reap lion's share of Plan funds
Source: The Sangai Express

Imphal, July 02 2012: Listing power supply, drinking water and good road connectivity as three core sectors which will be high on the agenda of the Government, chief Minister O ibobi Singh today pledged on the floor of the Assembly that necessary investments will be arranged to achieve the target.

Wherever necessary, structural reforms will be introduced, said the CM while presenting the State's Full Budget for the 2012-13 fiscal on the second sitting of the 10th Manipur Legislative Assembly's second session.

citing non-finalisation of the fiscal's year Plan size for the vote-on-account presentation in the first session of the 10th Manipur Legislative Assembly earlier this year, the CM highlighted priorities, challenges and constraints of the Government and ways to address the challenges and constraints.

With regard to the Rs 3500 Cr provision for 2012-13, Ibobi said the plan funds will be utilised for completing ongoing projects and taking up some new important developmental works.

Compared to 2010-11, Plan expenditure registered a growth of 16 percent and capital expenditure by 5 percent in the previous fiscal, he pointed out while affirming that the Government's vision for the 12th Five Year Plan would be "Faster, Inclusive and Sustainable Growth" .

Pledging to initiate all possible measures to meet the soaring aspirations of the people, he contended that serious effort to improve power supply, drinking water provision and road connectivity were taken during the last term of the government.

Conceding that a lot more needs to be done, the CM, who also holds the Finance portfolio, said despite limited resources focus would be on improvement of power transmission and distribution network, upgradation of road networks and augmentation of drinking water supply.

While highlighting various measures for improving the power supply scenario, including roping in services of consultants and processing joint venture initiatives, besides renewed drive against unauthorised consumers and tax collection measures, he said this year, apart from pre-paid metres, which will be used selectively, the Government plans to replace most of the ordinary metres with Infra-Red metres.

On the state of economy, wherein the growth rate declined from the highest level of 7.6 percent achieved in 2009�10, the CM attributed the downward trend to general decline of growth of the Indian economy.

"Since the tentative figures for the 11th 5 year plan are now available, we can now compare the growth achieved during the 11th plan period against the targets set," the three time Chief Minister said adding that as against the overall target of 5.9 percent set for the 5�year period, manipur achieved growth of 6.51 percent.

As per the provisional estimates, the economic growth was 6.2 percent during 2011-12, he informed the House and expressed that growth during the ensuing fiscal year would largely depend on how carefully the Government raise resources for public investments and yet remain within the discipline of the FRBM Act.

A major task of the Government is to find resources to stimulate the economy, he added.

Putting the State's decadal literacy rate to 78.85 percent in 2011 compared to 70.5 percent in 2001, he explained that male literacy rate increased by about 6 percent to 80.33 percent in 2011 while female literacy rate recorded a significant increase of 12.64 percent during the same period.

Compared to the national average Manipur has a healthy ratio of Crude Birth Rate and Crude Death Rate, the CM stated and remarked that Infant Mortality Rate is 14 per thousand as against All India figure of 47 .

In order to provide a much needed stimulus to the State's poor social and physical infrastructure, a large number of development projects, beginning from economic services sector, such as irrigation, power and roads, to social services sector, such as health and education, have been implemented and some are under implementation, Ibobi pointed out.

Terming fiscal management in Manipur as a tough task due to 'extremely narrow' resource base, he informed that about 90 percent of the State's Revenue Receipt comes from Central tax transfers and grant-in-aid, an indication that the state is solely dependent on receipts from the Government of India.

Referring to filling and creating additional posts in compliance with Central Government directive for better policing in the rural and urban areas, as factors for the heavy burden on the state exchequer, he said total expenditure on maintenance of police and State para-military forces has nearly doubled during the last two years.

Inspite of the total non-plan revenue expenditure of Rs 4062.35 crore during the year 2011-12, there has been a qualitative improvement in the security environment of the state which the CM attributed to well-directed counter insurgency measures.

Similarly, in order to provide momentum to the development process, we have accorded priority to create and fill up posts in the six tribal Autonomous District Councils, especially in social sectors of education and health, the CM said adding that during 2011-12, salaries expenditure alone accounted for more than 35 percent of the revenue receipt.

It is said that there was huge increase in plan and non-plan spending over the last one to two years with the Plan expenditure increasing by 36 percent from Rs 1815 crore in 2009-10 to Rs 2474 crore in 2010-11 .

It was Rs 2876.99 crore in 2011-12, an increase of 16 percent over 2010-11 .

Moreover, the Non-Plan Revenue Expenditure was put at Rs 2304 crore in 2009-10, Rs 2981 crore in 2010-11 and Rs 4062.35 in 2011-12 .

Maintaining that huge investments made in the last few years have brought about a significant transformation in the State's critical rural and urban infrastructures and have also led to overall improvement in the law and order situation, the CM also conceded that significant increase in expenditure has imposed a massive strain on the State's finances consequently raising serious concerns on the long-term sustainability of such expenditures.

Emphasising on checking rapid increase in non-plan expenditure, particularly salary expenditure, he expressed maximum restraint will have to be exercised to restrict fresh liabilities on the non-plan account.

Expenditure under Plan is one of the most important components under the state's budget as it is used for creation of capital assets.

Increased plan investment has provided the much needed push to take the State to a higher growth trajectory, the CM pointed out.

Further stating that State Plan will be financed to the extent of 98 percent by the central plan Assistance for which Normal Central Assistance has been fixed at Rs 840.54 crore, Ibobi conveyed that Rs 450 crore will be for taking up important and priority projects in the State under Special Plan Assistance (SPA) .

With a view to improve the quality of plan expenditures, the State Government has introduced Third Party Monitoring system in respect of development projects, he said and elaborated that evaluation study on Integrated Child Development Scheme (ICDS), Mid Day Meal (MDM), National Social Assistance programme (NSAP) and Public Distribution System (PDS) will be done by an independent agency.

Exuding confidence that such a mechanism of project monitoring will substantially improve quality of works being taken up under various schemes, he said the study will ascertain whether welfare programmes are implemented in the true spirit and, if necessary, corrective steps would be initiated.

On the important projects the Government propose to take up under Annual Plan 2012-13, he said Rs 80 crore has been earmarked for Tribal Areas Inclusive Growth Infrastructure Projects for construction of integrated complexes for SDO-cum-BDO offices in hill areas which will also include sufficient office and residential accommodation for bank branches.

Moreover, there will Rs 15 crore provision for construction of barrack-type Quarters for the Primary Teachers in ADC areas while Rs 120 crore has been allocated for upgradation of various roads in both hill and valley districts to provide connectivity.

Some other important projects, according to the CM, includes construction of Urban Haat at Imphal at Rs 5 crore; Rs 15 crore provision for GI pipes to enhance distribution network in hill and valley districts; Rs 40 crore for flood control and anti erosion schemes; Rs 13.22 crore for Sericulture Project Phase-II; Rs 5 crore for setting up of Information Technology Special Economic Zone; Rs 5 crore for construction of children homes; Rs 10 crore for laying pipeline from Thoubal Multipurpose Dam to Imphal city for augmentation of Drinking Water Supply; and Rs 3.75 crore for installation of 2x5 MVA, 33/11 KV sub-station with the associated 33 KV line at Thoubal Leishangthem.

Noting agriculture as the main source of employment and livelihood for more than half of the State's population, he said the outlay for agriculture and allied sectors has been increased from the approved outlay of Rs 139 crore during 20]1-12 to Rs 164.66 crore, a growth of 18 percent.

For effective agriculture practices priority would be on both major and medium irrigation projects for which Rs 608.00 crore allocation has been fixed for the fiscal year, informed Ibobi adding that allocation of Rs 549 crore has been made under 'Accelerated Irrigation Benefit Programme for completion of ongoing irrigation Projects.

While Rs 1.30 crore has been made in the Power Sector, for social sectors such as education, sports, art and culture the total funding would be Rs 183.73 crore.

It is also informed that Health and Water Supply sectors have been provided a sum of Rs 136 crore and Rs 185 crore respectively, whereas for Urban Development Rs 187.88 crore has been earmarked.

Specific provision has been made for the welfare of Scheduled Tribes amounting to Rs 37.37 crores while welfare projects for minorities, other backward classes and Schedule Castes would be undertaken with Rs 17.80 crores.

Skill development programmes would be expanded to meet growing demand of industry and service sectors, affirmed the CM who also stressed on policy initiatives to encourage investments in these areas.

On the likely fiscal position during the ensuing fiscal year, he said revenue account is estimated to be in surplus for the ninth consecutive year compared to fiscal deficit pegged at minus Rs 472.31 crore, minus 4.2 percent of GSDP.

The total outstanding debt is projected at 47 percent of GSDP during 2012-13 which is within the limit mandated by the Manipur FRBM Rules, 2011, said the CM while presenting the Budget Estimates for 2012-13 for consideration and approval of the House.

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