Imphal, February 12: The State Government is very likely to be relieved of its burden under non-plan deficit with the 12th Finance Commission giving favourable recommendations to the Union Cabinet in this connection.

The recommendation made by the 12th Finance Commission headed by C Rangarajan as chairman has given special mention of this aspect of the State's recurring problem, according to a highly placed source.

The source said that recommendation of the Commission emphasised on waiving the non-plan deficit of Manipur as a special category State.

Without disclosing the amount of the fund to be allotted to the State under 12th Finance Commission, the source said optimistically that recommendation would help in improving the financial condition of the State.

The exact figure would become clear after the matter is tabled in the Parliament, the source added.

The total of amount of non-plan deficit of the State during the financial year 2004-05 was Rs 1600.75 crore and if no remedial measure is taken up the revenue deficit might spiral up to Rs 1447.46 crores by 2010, the source said.

Taking this into account, the Commission, in its recommendation to the Union Cabinet succinctly observed that the non-plan receipt of the State during the 12th Finance Commission would be Rs 1190.23 crores and the non-plan revenue expenditure Rs 15664.69 crores if the existing trend continue.

The source further disclosed that 12th Finance Commission has recommended for giving grant to the State Government for upgrading the standard of judicial, jail, police, medical, fire, labour, revenue, school and higher education, commerce and industries, IT, art and culture, power, PHED, IFC, Municipal administration in a favourable manner.

For development and preservation of Loktak Lake which is the biggest freshwater lake in the whole North Eastern region, the Commission has recommended more than what the State had proposed.

Ditto for maintenance of road communication, the source said.

The recommendation made by the Commission also put special emphasis on development of Khuman Lampak Sports complex, PWD and Panchayat favourably, the source added.

Mentioned may be made that the total deficit amount of the State till March 31, 2004 was 2773.33 crores.

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