Imphal, June 15: Chief Minister O Ibobi Singh today informed the House that the State Government has been incurring a monthly deficit of Rs 30-35 crores that totals to about Rs 400 crore annually putting the Govt in severe financial hardships.

Supplementing the February 6 address of the Governor to the Assembly today, the Chief Minister who also holds the Finance portfolio said Manipur Government need around Rs 100 to 105 crores to pay monthly salaries to its employees.

Compared to the monthly requirements, State entitlement from the Centre hovers around the Rs 65-70 crore mark resulting in deficit amount of about Rs 35 crore ultimately adding to the annual deficit of over Rs 402 crores.

Highlighting that out of the total plan outlay of the State about 80 percent are used up in paying salaries to the employees, he stressed on the urgent need for a hike in Central allocation to divert more fund for development purpose.

However, as State plan size largely depends on resources of Manipur, Ibobi said to increase the plan size resource mobilization need to be increased to a substantial level.

Referring to the power sector, an important criterion in increasing resources, the Chief Minister lamented that consumers rather than clear their pending power dues always argue that power supply is insufficient and irregular whenever tax collection drive is pursued.

As the State power consumers seldom clear the dues the State Government has to pay around Rs 120 crores annually to power corporations for purchase of power to the tune of Rs 10 crore every month.

In contrast to the annual payment to the power corporations electricity tax collections from the public consumer hardly reach Rs 20-30 crore per annum, Ibobi said while adding that State Govt has to collect about Rs 90 crore from the consumers.

Asserting that to collect the pending dues strict measures like holding back employees' salaries had to be applied, he said there is urgent need for public cooperation to the Govt especially clearance of all liable taxes by the public so that State resource mobilization capability could be enhanced.

Comment