Centre may extend financial aid before elections
Source: The Sangai Express

Imphal, February 03 2024: Considering the extremely bad financial condition of the State, the Centre may extend special financial assistance to the State Government before the Parliamentary elections.

The State's economy suffered a serious blow on account of the protracted Covid-19 lockdown.

Even though the Covid pandemic was contained, the State's economy could not recover as Manipur was plunged into a war-like situation since May 3, 2023 .

On account of the war-like situation, the State's economic activities have been slowed down almost to the point stagnancy.

As a result, the State's economy has fallen into a very bad shape.

In order to recuperate the sick economy to some extent, the State Government requested the Centre to release an advance payment of Rs 600 crore but the same has not been released as of now, according to information received from the State's Finance Department.

On account of the widespread violence, the State has lost a revenue of Rs 575 crore.

In order to tackle the resulting financial difficulties, the Chief Minister wrote to Union Finance Minister Nirmala Sitharaman in October last year to release an advance payment of Rs 600 crore from the State's share of Central taxes for three months.

If the requested amount of Rs 600 crore is released, it would be adjusted against the State's share of Central taxes which the State should get in February-March, said the source.

Even though the requested advance payment of Rs 600 crore is not released yet, the State Government is confident that the Centre would make a special arrangement considering the financial difficulties being faced by the State, informed the source.

The State's financial position has fallen into a very bad shape as a large number of people have suspended all economic activities and there is little movement or transportation on National Highways.

Pushed to a very tight position, the State Government has been focusing on committed liabilities such as payment of salaries and pensions, security-related expenditures purchase of power etc.

Nowadays, employees' monthly salaries and pensioners' pensions are released quite late, according to the source.A real picture on the State's financial position and how to tackle it will emerge by the end of February.

By then, the Government of India would also take a decision on the request made by the State Government, said the source.

The country's interim budget for 2024 has also been tabled in the ongoing special session of the Parliament, added the source.

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