Imphal, January 22 2009: Decades of insurgency has been adversely affecting the socio-economic fabric of Manipur and has been bearing heavily upon the State's finances, stated Chief Minister O Ibobi during a meeting with the visiting 13th Finance Commission team at Raj Bhavan here today.

The Chief Minister also pointed out that Manipur has been suffering from serious infrastructural bottlenecks and locational disadvantages which are preventing the State from harnessing its full potential.

The 13th Finance Commission team who attended the meeting included Chairman Dr Vijay L Kelkar, BK Chaturvedi, Prof Atul Sarma, Dr Sanjiv Misra and Sumit Bose and other members.

The State Government was represented by Chief Minister O Ibobi, Minister for Revenue and Forest Th Debendra, Power and Horticulture Minister Phungzathang, Minister for Health and Family Welfare Ph Parijat, other Cabinet Ministers and the DGP.

While pointing out the infrastructural bottlenecks, Ibobi noted the historical route between Manipur and South East Asia which provided comparative advantage for further growth and development.

He also spoke about the rich cultural heritage, outstanding sporting talent of Manipuri people and high entrepreneurial drive among Manipuri women.

The Chief Minister urged the Finance Commission team to set aside at least 50 percent of the net proceeds of the Central taxes out of which 30 percent may be earmarked for the Special Category States in view of the serious cost disabilities existing in this category of States.

Huge security expenditure borne by the State and full impact of the pay commission may be taken into account while assessing the State's NPRE during the forecast period.

He also sought adequate funds for maintenance of capital assets and filling of essential posts through fresh recruitment.

The scope of DCRF may be expanded by including exempt categories of loans such as non-plan loans, loans for central plan schemes, loans for CSS and loans for NEC and NSSF which are presently outside the purview of the scheme.

The Chief Minister also asked the Finance Commission for special grant for upgradation of the sports complex.

Ibobi also talked about the improvement in the financial position of the State during the 12th Finance Commission period due to higher central devolution, improvement in the State's Own Revenue Receipts following introduction of VAT and reduced interest payments.

Talking about the State's achievements in the field of human development, the Chief Minister asserted that Infant Mortality Rate in the State is one of the lowest in the country.

Rise in female literacy and enrolment ratio at the primary level are also one of the highest in the country, Ibobi stated.

In response to the Chief Minister, 13th Finance Commission Chairman Vijay Kelkar referred to the present economic crisis across the world and emphasised on the need for a collective response to enable the country rise above these challenges.

Pointing out that the per capita GSDP of Manipur is much lower than the national average, the Chairman stressed on the importance of accelerating growth for the State to overcome its many challenges, including that of insurgency.

Nevertheless, Vijay Kelkar appreciated the achievements of the State in areas of literacy, infant mortality rate, positive sex ratio and low percentage of the people living below poverty line.

He also noted the spectacular performances of the sports persons of Manipur in national and international arena.

While congratulating the State Government on enacting FRBM legislating and meeting its fiscal targets, the Chairman urged the State Government to assist in building a national consensus for prompt implementation of GST.

He also appealed to the State Government to put in place efficient appraisal and monitoring so as to gain maximum returns from the projects funded under capital expenditure.

He also appealed to the State Govt to expedite development of hydro power potential of the State involving private sector wherever possible.

The Commission will finalise its recommendations by October this year.

In the afternoon session of the meeting, the Finance Commission team interacted with leaders of different political parties, local bodies and officials of Trade, Commerce and Industry.

The team will visit Singda Dam and the State Museum before leaving for Kolkata in the afternoon tomorrow.

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