Manipur CM Biren Singh affirms state's economy stable amid crisis

Chief Minister N Biren Singh said that the ongoing crisis does not affect the economy of the state as much as people had anticipated. Reviving the financial condition wouldn’t be a big deal if complete normalcy is restored.

Biren stated this today at the floor of the ongoing 5th session of the 12th Manipur Legislative Assembly session. He gave this information as a response of a calling attention motion moved by Congress MLA Surjakumar Okram on the deteriorating state economy due to the ongoing violence.

Biren said that economic losses incurred by the state due to ongoing crises couldn’t be produced at present. However, the said information will be known only when the Gross State Domestic Product (GSDP) of the state is reconciled with the Ministry of Statistics and Programme Implementation, Government pf India.

Nevertheless, through the assessment done by the state finance department with focus on State Goods and Service Tax, it came to notice that the state may incur a loss of around Rs 800 crores during the current financial year. This can be an indicator of the impact on the state economy by the present crisis, he added.

He went on to say that it is obvious to face financial loss, especially during the crisis. But fortunately state economy doesn’t affect to the level which people had expected. The state government treasury expenditure has not reduce significantly and as this expenditure contributes a major portion of the state GSDP. This itself also proves that the economy of state is not hugely affected.  

While sharing his confidence on improving the state’s economy, he said that people should not lose hope as the state is getting enormous support from the central government. The Government of India had approved providing support worth around Rs 400 crore for first phase. Out of it, Rs 203.25 crore was released. 

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Above this, the Government of India had increase tax devolution to Rs 600 crore and additional borrowing space to 3.5 per cent of GSDP.  Earlier it was only 3 per cent of GSDP.  The government of India increased borrowing space only after observing the economic stability of state, Biren informed.

He also said that automobiles had been highest losses followed by iron and steel and electrical machinery and equipment. However the impact on the services sector including construction services were minimal.

Responding to MLA Surjakumar's concern,  Biren said that he would urge the central government for exempt of income tax of the state for this crisis period. Also assured that he will put his effort in requesting the authority concerned not to increase airfare with the onset of the crisis. 

Surjakumar during call the attention motion, suggested the state government to figure out loss of every sector incur by state due to crisis. He also said that an expert committee should be formed consisting of all related stakeholders and chart out a road map to face the financial consequences. 

He also urged CM to draw his attention on ever increasing of airfare from Imphal to any other state of India. Because of the crisis, people hesitate to travel other states through roadways. Taking this opportunity, flight charges are skyrocketing. Along with this, he also urged CM to raise concerns on the exemption of Income tax during this crisis.