Imphal, May 05: Despite the general impression that the financial situation in the State has marginally improved ever since the SPF Government came to power (regular payment of salaries), the State continues to reel under huge debts and liabilities.

As on March 31, the last date of the previous fiscal, the debt position of the State had touched the Rs 3120.87 crores mark and over and above this there is another Rs 754.16 crores owed by the State taken as loans.

The debts of Rs 3120.87 crores incurred by the State Government till March last fiscal included Rs 1496.19 crores as Central loan, Market loan Rs 749.85 crores, ways and means from RBI Rs 55.08 crores, Provident fund and deposit Rs 514 crores and Reserve fund and deposit Rs 176.52 crores.

The amount to be released by the Centre for the present financial year is Rs 1160 crores.

The ban imposed by the RBI on Govt transactions since April 22 still stands.

The ban was re-inforced after the State Govt ran up an over draft of Rs 350 crores.

The ban has stalled the release of pension and salaries of Government employees for the month of May.

To ease the financial burden, the State Finance Department has urged the Union Finance Ministry to release the pending Rs 808.39 payable to the State as non-Plan revenue deficit.

If the said amount is released then the RBI may lift the ban imposed on transaction within the next two weeks, said a reliable source.

Mention may be made that the State's share in the 12th Five Year Plan for the period 2005-2010 has been fixed at Rs 6870.20 crores which is a substantial increase from the 11th Five Year Plan.

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