Mizoram financial crunch due to poor fiscal management: Congress youth wing

The Mizoram Congress' youth wing has claimed that the state is experiencing financial hardship under Mizo National Front (MNF) rule as a result of "poor fiscal management".

Notably its liabilities have grown by 71.59 percent over the past four years, claimed the youth wing.

Since the Zoramthanga-led government took office in December 2018, the state's overall liabilities, according to the statement, have increased by Rs 5,217.53 crore.

"Mizoram is now groaning under acute financial pressure due to bad budgetary management," the young Congress stated in a statement. It stated that the anticipated total state debt was Rs 12,553 crore. MNF leaders and government officials could not be contacted for comment on the matter.

The government, meanwhile, had previously stated that it was experiencing a financial crisis because to "a number of factors, including the Covid-19 epidemic and non-receipt of state's share of taxes and funds from the Centre, amounting to around Rs 2,630 crore from 2019-20 to 2020-21."

The state legislature was notified by Chief Minister Zoramthanga, who also holds the finance portfolio, in early September that the government had taken out loans totaling Rs 256.396 crore as "overdraft" six times between July 21 and August 2 of the current fiscal year.

Additionally, according to official sources, the government frequently used advances in ways and means and special drawing loans.

The Ways and Means Advances are short-term loans provided to governments by the RBI to cover any discrepancy between collections and payments.

According to the sources, the state government will once more borrow money on the open market for loans totaling Rs 100 crore. Zoramthanga met with Union Finance Minister Nirmala Sitharaman on a recent two-week visit to New Delhi to discuss the state's financial situation and to request assistance from the Centre.