Budget testifies centre's apathy: NLA Surjakumar
Source: Chronicle News Service

Imphal, March 12 2025: Khangabok MLA O Surjakumar has criticised the state budget tabled in Parliament on Monday, stating that it fails to reflect the sufferings of the people of Manipur, particularly those who have been displaced due to the ongoing crisis.

He remarked that the budget gives the impression that nothing has happened in the state in the last 22 months.

Addressing a press conference at his official residence on Wednesday, MLA Surjakumar stated that past budgets tabled by the state government were mere copy-paste documents with slight increments.

With the Governor and the chief secretary being experienced bureaucrats, people had hoped that this year's budget, prepared under President's Rule, would bring some relief.

However, he pointed out that this year's budget has remained unchanged from past traditions, failing to acknowledge the crisis in the state or the hardships faced by the displaced persons.

The Budget Estimate (BE) for 2025-26 stands at Rs 35,108 crore, which is approximately Rs 264.29 crore more than last year's BE.

He expressed surprise that, despite the prevailing financial distress due to the crisis, this year's budget projects a surplus instead of a fiscal deficit, which had been a consistent trend in past budgets.

He warned that such a projection could send a misleading message about the state's financial position to the rest of the country.

According to the budget, 61 per cent of the total BE is projected as revenue expenditure, while 39 per cent is allocated for capital components.

Within the revenue expenditure, 29 per cent is earmarked for salary and pensions, and 16 per cent for interest payments.

The state spent Rs 976 crore on interest payments in 2023-24, and the amount has increased to Rs 1208.92 crore this year, indicating a rise in government borrowing.

He pointed out that at least 50 per cent of the total expenditure is allocated for loan repayment, interest payments, salary, and pensions, leaving Very little for infrastructure development.

Given this scenario, he said the state would require additional development funds from the Centre.

He further highlighted that the economic condition of the state remains grim, with the market downturn and many private sector establishments shutting down.

In such a situation, expecting a two-fold increase in tax revenue does not align with the ground reality.

He suggested that the government's revenue projection appears to be a desperate attempt to justify the decreasing amount of revenue gap grants provided by the 15th Finance Commission.

Surjakumar also criticised the budget for being identical to the one prepared by the state government before President's Rule was imposed.

He pointed out that the Gross State Domestic Product (GSDP) was Rs 49,000 crore last year, yet despite the current crisis, the budget estimates the GSDP at Rs 60,000 crore this year.

He questioned how the budget projects the highest GSDP growth rate among states when the financial distress in Manipur is severe, calling the estimation unrealistic.

Regarding the plight of internally displaced persons (IDPs), he said the budget has allocated only Rs 35 crore for their housing, which he deemed insufficient to compensate for the massive losses suffered.

With over 60,000 people displaced and the socio-economic loss projected to be at least Rs 10,000 crore, he said the budget fails to address the urgent need for rehabilitation.

He questioned how peace and normalcy could be restored without any financial commitment toward rebuilding the homes of those affected.

Additionally, the budget includes Rs 100 crore relief fund for IDPs.

He calculated that if each displaced family is assumed to have five members, the allocation translates to merely Rs 46 per head per day.

He lamented that displaced persons are living in extremely difficult conditions, with many developing suicidal tendencies, and other already taking the extreme step.

He said they are struggling with uncertainty about when they will .be able to return home.

Unfortunately, he stated, even after analysing the budget, it is clear that neither the Prime Minister, the home minister, nor the finance minister has an answer to their plight.

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