Manipur Govt To Borrow Rs 400 Cr For Providing Salaries To Employees

Imphal, June 20, 2019

Manipur Chief Minister N Biren Singh has said that his government which is facing financial crisis to the tune of Rs 274.48 crore is to borrow Rs 400 crore from the open market to dole out the overdraft and for providing salaries for its employees.

This is the first major financial crisis of the NDA government led by the Chief Minister N Biren Singh who took the power of the state since March 15, 2017. However, there came prompt response from the central leaders for the betterment of the people especially the government employees.

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Addressing the media on Thursday, a day after his arrival here from New Delhi where he had met the Prime minister Narendra Modi and Union Finance Minister Nirmala Sitharaman, the chief minister expressed his hope that the Reserve Bank of India (RBI) is likely to lift the ban imposed on the financial transactions of the State Government due to overdraft soon.

To this effect, the Union Finance Minister Nirmala Sitharaman has issued permission directing the RBI to raise open market borrowings of the State up to Rs. 795 crore, Chief Minister N. Biren Singh has said.

Since June 12 the State ran into an overdraft to the tune of Rs 274.48 crore and then the RBI has banned any form of fund sanction to Manipur government.

To make the worst of it, the state government started imposing a ban ongoing recruitment process in all departments including all agencies, societies, undertakings, boards, corporation, etc. under various departments.

The Chief Minister said that during his recent visit to New Delhi, he had apprised Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman of the current financial position of the State.

Biren further informed that he requested the Finance Minister to release open market borrowings to overcome the current situation. Subsequently, the Union Ministry of Finance issued permission directing the RBI to raise open market borrowings of the State up to Rs. 795 crore.

For the time being, the State Government is borrowing Rs. 400 crore from the open market through RBI to neutralize the current overdraft, he said, adding that the State Government is also expecting to receive Rs. 305 crore as the State share of Central Taxes in a day or so.