A team of the 16th finance commission led by its chairman Arvind Panagariya held a discussion with Manipur Chief Minister N Biren Singh with regards to utilisation of central funds for the state’s progress.
The discussions focused on the efficient use of funds received under Centrally Sponsored Schemes, proposals for grants-in-aid towards development across key sectors, and the implementation of targeted projects intended to catalyze Manipur’s economic transformation.
“To maximise economic outcomes, the state should align state projects with central financial support, and encourage sustainable development within the region”, Arvind Panagariya said while addressing the media on Friday at the Classic Grande.
Arvind Panagariya said India has set its sights on fostering economic growth in Manipur through judicious fund allocation.
“A large part of the focus (of the meeting) was on the finances including what is expenditures in relation to the GSDP, outstanding liabilities in proportion to GSDP, what is the fiscal deficit etc,” Panagariya informed the media.
Panagariya also informed that the state government has recommended some changes to be made on both vertical and horizontal devolution in the 16th finance commission from the 15th finance commission.
“The state recommended that in vertical devolution 50 percent fund is to be granted to the state as the state currently shares 41 percent. Based on the 15th finance commission, 41 percent of the divisible pole goes to the state and 59 percent to the central government”, said Panagariya.
Mentioning the state’s share among 28 states of India, Panagariya said that 15 percent share of the state is based on demographic change it measures by total fertility rate. And according to the 15th finance commission, the lower the total fertility rate the higher the share of the state, he said.
However, the Manipur government recommended that this criteria should not be used in the devolution of the 16th finance commission, he said.
Further, he said the poorer the state is related to the richest among 28 states, the largest share will give to the state which has no own revenue.
The state has also recommended looking in the context of the total land area of the state while devolving in context with the forest, he said.
“In per capita income terms, revenue expenditure is quite compatible, perhaps even from certain states, certainly must average India”, said the chairman while enquired by the media on revenue of the state.
The chairman was accompanied by member- Manoj Panda, Ajay Narayan Jha, Annie George Mathew and Ritvik Pandey of the 16th finance commission.
Manipur Chief Minister N Biren Singh on X posted that he had discussions with the 16th Finance Commission on Friday on effective utilisation of funds provided through centrally provided schemes.
“Discussions were held on the effective utilisation of the funds provided to the state through Centrally Sponsored Schemes, proposals for grant-in-aids towards development of various sectors, and execution of specific projects, etc. in order to bring an economic transformation in the state,” CM Biren said in a post on X.
Besides the chief minister, those who attended the meeting included several members of his cabinet, the chief secretary and other senior officials.
