Imphal, January 22 2009: MEMBERS OF the 13th Finance Commission today met Manipur Chief Minister, O Ibobi, the council of ministers and state officials at the Raj Bhavan Banquet Hall in Imphal. During the meetings various features of the state, both achievements and problems, were highlighted by the chief minister and also laid down points of considerations for the finance commission, informed a press note of the Directorate of Information and Public Relations (DIPR) .

According to the official press note, the chief minister requested the Finance Commission that topographical profile of the state entailing per unit cost of service be taken into account which deciding upon devolution and that at least 50 percent of the net proceeds of the Central taxes may be devolved to the States out of which 30 percent may be earmarked for the special category states keeping in view the serious cost of disabilities existing in this category of states.

The chief minister also requested for enhanced support for empowerment of local bodies, added the press note of the DIPR.

Moreover, with the state practically bearing all the expenditure of the state security, Ibobi also requested that the situation be considered by the commission while assessing the State's NPRE during the forecast period, stated the press note adding that the Chief Minister also requested that full impact of the pay commission may be taken into account while assessing the NPRE during the said period.

Further, the chief minister also requested that adequate funds be provided for maintenance of capital assets and filling of essential posts through fresh recruitment besides requesting special grant for the upgradation of the sports complex, stated the press note.

In reply to these requests, the members of the Finance Commission observed that in view of the unprecedented crisis in the world economy, there was a need for collective response by all levels of government of India to enable the country to rise above these challenges.

While appreciating and congratulating the state for its achievements in various fields- literature, health or sports, the commission also emphasised on the benefits of GST and urged the state government to assist in building a nation consensus for prompt implementation of GST, informed the press note of the DIPR.

While congratulating the state government on enacting FRBM legislation and meeting its fiscal targets, the commission also felt that a medium term strategy for accelerating productive public investment in key priority areas was required, stated the press note.

The commission also observed that the trend growth rate of revenue expenditure for the period of 1999-2007 was lower than the average for the same period for all special category states partially reflecting good expenditure control.

The commission also appreciated the declining expenditure on salaries, pension and interest payment over the last four years and observed further that these expenditures still account for over two-third of total revenue expenditure, added the press note.

As per the press note of the DIPR, the commission also requested the state to expedite development of hydro power potential of the state involving the private sector wherever possible.

During the meeting the Chief Minister also highlighted the achievements of the state such as the rich heritage and culture, outstanding sport personalities, health and literary.

Besides these highs the O Ibobi also highlighted the lows of the state where insurgencies for over the last decade had been hampering the development of the state.

The chief minister also highlighted the problems of unemployment, marginalisation, structure weakness in finances and economy and a narrow scope for the state to raise its revenue, informed the press note.

On behalf of the state government presentations were also made by secretary (finance) on the state finances and on security related issues by the director general of police (DGP), Manipur.

Dr.Vijay L.Kelkar, chairman, B.K.Chaturvedi, prof.Atul Sharma and Dr.Sanjiv Misra, members of the 13th Finance Commission and Sumit Bose, Secretary are on a three day, January 21-23, 2009, visit to the state of Manipur as a part of consultations with the state government and key stake holders.

According of the information of the DIPR, the commission will finalise its recommendations by October 2009 after completing its discussions with all the state governments, the government of India and relevant stake holders.

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