New Delhi/Imphal, Oct 29 (IANS) Manipur Chief Minister Yumnam Khemchand Singh on Thursday met the Union Finance Minister Nirmala Sitharaman in New Delhi and highlighted the revenue losses suffered by the state over the past three years due to the ethnic violence, seeking enhanced financial assistance from the Centre to overcome the ongoing fiscal crisis.
A senior official of the Chief Minister’s Office (CMO) in Imphal said that the Chief Minister urged the Union Finance Minister to extend central support to help the state tide over its current financial difficulties.
He also requested additional funding under the Special Assistance to States for Capital Investment (SASCI) scheme.
Khemchand Singh met Sitharaman at her office in Kartavya Bhawan in New Delhi and discussed the overall financial health of Manipur, emphasising the need for enhanced central assistance in view of the economic challenges faced by the state.
During the meeting, the Chief Minister apprised the Union Finance Minister of the state government’s ongoing efforts to maintain financial discipline and strengthen fiscal management despite the financial constraints arising from the prolonged ethnic conflict.
He highlighted that the state government had successfully ensured the timely payment of salaries and pensions to its employees on the first working day of every month, despite the economic difficulties.
The Chief Minister also discussed the progress of Externally Aided Projects (EAPs) in Manipur and briefed Sitharaman on the effective implementation of various Centrally Sponsored Schemes (CSS) and other developmental projects being undertaken by the state government.
According to the CMO official, the Union Finance Minister responded positively to the requests made by the Chief Minister and assured him that the Centre would extend all possible assistance and support to the state government to improve Manipur’s financial health.
The discussions assume significance as Manipur continues to face economic challenges following the ethnic violence that erupted on May 3, 2023, severely disrupting normal life, economic activities and revenue generation across the state.
The Chief Minister had earlier said that the violence had dealt a major blow to the state’s economy, resulting in an estimated revenue loss of around Rs 1,200 crore in Goods and Services Tax (GST) collections between 2023 and 2026.
The decline in revenue collections has added to the state’s financial pressures, making central assistance important for sustaining government expenditure and implementing development programmes.
Chief Minister Khemchand Singh reiterated the state government’s commitment to maintaining fiscal discipline, ensuring the timely disbursement of salaries and pensions, and implementing centrally supported and externally aided projects despite the financial difficulties.
The Centre’s assurance of all possible assistance is expected to provide support to the state government’s efforts to improve its financial position and sustain developmental activities, the CMO official said.
–IANS
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