Source: The Sangai Express
Imphal, April 23:
Just as the financial year 2005-06 has begun, the Reserve Bank of India (RBI) has imposed restriction on financial transaction of the State Government as the overdraft amount of the State has crossed the Rs 350 crores mark within the first quarter of the new financial year, according to a reliable source.
The ban is likely to remain till May although the Government is hoping that the financial position might improve after award of the 12th finance commission.
The source informed that the RBI imposed the ban on April 21 night as the overdraft amount of the State Government by the first quarter of the financial year 2005-06 has crossed over Rs 350 crores.
However, with the Centre having given a nod to the State Government of waiving the overdraft amount through release of soft loan of the same amount, the problem would not be so much alarming, the source said, adding that the Centre has given an assurance to the Chief Minister in this regard.
Following the RBI ban, Commissioner RR Rashmi who is also in charge of finance, has written to the RBI authorities for allowing utilisation of 18 percent of the Manipur Development Loan, it informed.
Out of the recommended amount of Rs 8391.38 crores for the next five years, the State�s plan share for the current financial year would be released in May, the source said, expressing confidence that the State would not be facing much financial difficulty and will be able to pay the salary of the employees in time.
Efforts are being made to increase the DA/DR of the State employees after the award of the 12th Finance Commission, the source maintained.
It may be noted here that during 2001-02, RBI ban was imposed nine times and total number of days which came under the ban was 331.Similarly during, 2002-03, the ban was imposed for nine times and it remain for a duration of 347 days.
While during 2003-04, the ban was imposed for eight times and for 180 days.