Three months after the President’s rule in Manipur, Governor Ajay Kumar Bhalla has demanded Rs 1,000 crore from the central government, which broke two years ago as a special aid grant for the state in the backdrop of ethnic violence, which adversely affects the state’s economic activity and revenue collection, explained to the Indian Express.
It has been learned separately that Governor Ajay Kumar Bhalla has also requested an early release of Rs 500 crore to Rs 1,000 crore to meet the immediate requirements of the state, such as cleaning the expenses related to pension backlog and security.
Indian Express has learned that the Finance Ministry has decided to give an additional amount of Rs 500 crore to Manipur, which is towards various projects under the current special assistance for Rajdhani Investment (SASCI) 2025-26.
In a communication for Finance Minister Nirmala Sitaraman in May, Bhalla has been learned to talk about low revenue collection in Manipur, which took place after ethnic violence, which broke in May 2023. This, he mentioned, influenced the state government’s ability to influence pension, salary, and other committed liabilities, which combines pension backing.
It is learned that the Governor of Manipur pointed to the tax revenue deficit for the fiscal state of Rs 2024-25 for Rs 1,554 crore as compared to Rs 1,528 crore in the last financial year. He mentioned that the revenue collection for the state in 2022-23 was Rs 1,983 crore, indicating that there is no significant recovery in the revenue collection, and it could affect the state’s ability to meet the developmental and security-related objectives of the state.
They are also understood that poor revenue collection is also due to relief and state expenses on law and order, saying that the state is yet to be paid by the Ministry of Home Affairs in the form of reimbursement of Rs 300 crore.
He told the Finance Ministry that special assistance grant of Rs 1,000 crore to Manipur would help the state in clear pension backlog and will meet the expenses for security and relief measures for the displaced people due to violence. This will help the state give its share in various centrally sponsored schemes and will help take various developmental measures in rural areas of the state, especially in mountainous areas.
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The Governor of Manipur has also stated that the state has been unable to claim funds for local bodies under the 15th Finance Commission grant since 2021-22, which is for the urban local bodies and autonomous district councils since 2020 and is for the Panchayati Raj Institutions since 2022.
Earlier, the Finance Ministry had provided Rs 500 crore to the state as special assistance for revenue loss and economic reform, which was provided in two installments. It is believed that money was completely used by the state.
Last year, the Indian Express reported that before the Union Budget presentation, the Manipur government had approached the Center with a wisherist, including more than 10 percent of additional funds, which is above 10 percent, which is usually withdrawn with gross budgetary support for the North Eastern states, affecting houses for 5,000 units for violence-victims for violence-victims.
Last year, former Chief Minister of Manipur N. Biren Singh sought a financial grant of Rs 2,000 crore from the Center as a special case, citing the loss of tax revenue in the state due to security and economic challenges. In October 2023, Singh also requested for three months of Manipur’s share in central taxes to deal with the financial crisis due to ethnic clashes in the state.
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