FM Sitharaman: Committed to restoring normalcy and economic growth in Manipur

Finance Minister Nirmala Sitharaman reaffirmed the central government’s commitment to bringing normalcy back to Manipur while ensuring economic recovery and development in the violence-hit state.

Speaking in the Rajya Sabha during the discussion on the Manipur Budget for the current fiscal and the vote on account for 2025-26, Sitharaman assured full support for the state’s economic revival. She urged the Opposition to cooperate in efforts for peace rather than engage in blame games over the crisis.

Defending the government’s approach to Manipur, Sitharaman dismissed criticism regarding Prime Minister Narendra Modi’s absence from the state, stating that past prime ministers, including PV Narasimha Rao and IK Gujral, had also not visited during times of violence.

She emphasized that Union Home Minister Amit Shah and the Minister of State for Home had spent significant time in Manipur to address the crisis, underlining the BJP-led government’s “greater sensitivity” towards the state.

"We extend the fullest support to the state... so that the recovery of Manipur will be sooner than later... We are all committed to bringing back normalcy and ensuring Manipur prospers like any other state," Sitharaman said.

The minister acknowledged that the unrest had severely impacted economic activities in Manipur but expressed confidence in its recovery. 

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She highlighted various allocations made in the budget to aid the state's revival:

₹913 crore under Special Assistance for State Capital Investment (2024-25).
₹500 crore for the newly created Contingency Fund for Manipur.
₹2,000 crore under Special Assistance to States for Capital Investment (SASCI).
₹9,520 crore allocated for social sector outlay.
₹157 crore earmarked for relief and rehabilitation of internally displaced persons, including ₹35 crore for housing, ₹100 crore for relief operations, and ₹7 crore for compensation.
₹2,866 crore for police incentives in sensitive areas.

Manipur’s budget projects total receipts at ₹35,368.19 crore, marking an increase from ₹32,471.90 crore in 2024-25. Capital outlay has been increased by 19% to ₹7,773 crore, while the fiscal deficit for 2025-26 is estimated at 3.42% of GSDP, with outstanding debt projected at 37% of GSDP.

Manipur remains under President’s Rule since February 13, 2025, following the issuance of a proclamation under Article 356 of the Constitution, granting Parliament control over legislative powers in the state.

As the government pushes for peace and economic stability, Sitharaman urged all stakeholders to work towards rebuilding Manipur, ensuring that the state’s growth is not hindered by political differences.