Manipur Chief Minister Biren Singh on Tuesday told the House that the financial condition of the state is stable and that there is no possibility of facing financial instability or financial crisis like situation despite the state having a financial debt of Rs 16,039 crore.
The chief minister was responding to a cut motion moved by CLP leader O Ibobi Singh, Congress MLAs, K Meghachandra Singh and Th Lokeshwar Singh during the ongoing monsoon session of the 12th Manipur Legislative Assembly.
The motion was moved on account of need of proper policy for financial management in regard to un-regulated borrowing, lack of proper guidance for revenue collection, inability of the department to clear and furnish the benefits of pension/family pension/DCRG/Commutation/GPF/Gratuity, inability in the administration and management of finance in the state, need of proper policy to provide benefits to the government employees under the new pension scheme and need of proper policy for releasing funds of department in time.
N Biren Singh said that currently the liability of the state is Rs 16,039 crore but most of the debt amount is invested in development and a long-term bank loan. The money invested in developmental projects will be returned in value and as such, there is no need to worry about facing any kind of financial crisis, the CM asserted.
Even during the COVID-19 pandemic, the state had carried out many developmental works and salaries and pension of most of the employees were disbursed, he added.
The CM also said that in view of the improving law-and-order situation and financial discipline maintained by the state, many agencies from out of the state are wishing to invest in the state.
At present, four projects under External Assistant Project (EAP), worth around Rs 5,104 crore, are already implemented, Biren added.
They are Imphal Kangchup Tamenglong Road funded by ADB with a value of Rs 1,437 crore, Manipur Water Supply Project funded by NDB with a cost of Rs 3,100 crore, Sustainable Forest Management for Water Conservation by AIIB worth Rs 256 crore and Dam Rehabilitation and Improvement Project by AIIB with a cost of Rs 311 crore, the CM informed.
He further said that tenders for three projects under EAP are already floated. They are Rejuvenation of Lamphelpat Water Body by NDB with a cost of Rs 650 crore, Integrated Sewage Project for Imphal City Phase II by NDB with a cost of Rs 1,150 and Imphal Ring Road by ADB worth Rs 915 crore.
Four more projects under EAP, worth around Rs 6,315 crore, were also recommended by Central Government; they are Concrete Road with Rigid Pavement in Imphal Cities and district headquarters by AIIB worth Rs 3,150 crore, Enhancing Livelihood Through Community Based Watershed Development by JICA at a cost Rs 1,397 crore, Loktak Lake Rejuvenation Project with Eco Tourism Component by ADB and Manipur IT Special Economic Zone by World Bank worth Rs 418 crore, he added.
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Biren said that with the implementation of GST, the state is getting lots of benefits. With the increase of Gross state domestic product (GSDP), the borrowing capacity of the state has also increased, the CM added. The GSDP has been increased to 12.03 per cent in 2022-2023 from the previous year. During this three-month period of 2022-2023, the value of GSDP is 42,301.
Stating about government expenditure, he said that 24 per cent of GSDP are spent on agriculture, 12 per cent of GSDP in secondary sector and 64 per cent in tertiary sector. 22 per cent of the tertiary sector are used as a government expenditure account, Biren informed.
The CM also said that the state government gives priority to the health and education sector. 3.5 per cent of GSTP worth Rs 1,480 crore are used in the health sector, 5.9 per cent of GSDP worth Rs 2,525 crore is used in the education sector, he added.
He also said that the state government had earmarked Rs 1,100 crore as state matching share to get an amount of Rs 9,000 crore for centrally sponsored schemes.
Clarifying about the pension scheme, Biren said that the state government will clear the amount for the one time pension scheme by October. Due to COVID-19 it got delayed however, it will be released by October.
The state would incur more liabilities to exercise the Old Pension Scheme than New Pension and as such, to prevent financial burden which future generations may incur, the state decided to implement the New pension Scheme, the CM said.
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