Manipur CM Yumnam Khemchand Singh urged Union Finance Minister Nirmala Sitharaman to provide enhanced central financial assistance to address revenue losses caused by ethnic violence. He also sought additional SASCI funding to strengthen fiscal stability and sustain development projects.
Manipur Chief Minister Yumnam Khemchand Singh on Thursday met Union Finance Minister Nirmala Sitharaman in New Delhi and sought enhanced financial assistance from the Centre to address the state’s ongoing fiscal difficulties caused by revenue losses following the ethnic violence that erupted in May 2023.
During the meeting, held at the Union Finance Minister’s office in Kartavya Bhawan, the Chief Minister highlighted the financial challenges faced by Manipur over the past three years and requested additional central support to strengthen the state’s financial position.
According to a senior official of the Chief Minister’s Office (CMO) in Imphal, Khemchand Singh urged the Union Finance Minister to extend necessary assistance to help the state overcome its current economic difficulties. He also requested additional funding under the Special Assistance to States for Capital Investment (SASCI) scheme to support infrastructure development and other important projects.
The Chief Minister briefed Sitharaman on the overall financial condition of Manipur and explained the state government’s efforts to maintain fiscal discipline despite the economic challenges resulting from the prolonged ethnic conflict.
He informed the Union Finance Minister that the state government had continued to prioritise financial management and ensure the timely payment of salaries and pensions to government employees. Despite the financial constraints, the administration has successfully maintained the practice of disbursing salaries and pensions on the first working day of every month.
Khemchand Singh also discussed the progress of Externally Aided Projects (EAPs) in the state and briefed Sitharaman on the implementation of various Centrally Sponsored Schemes (CSS) and other developmental programmes.
He highlighted the state government’s efforts to ensure that ongoing development activities continued despite the financial pressure and disruptions caused by the ethnic violence.
According to the CMO official, Union Finance Minister Nirmala Sitharaman responded positively to the issues raised by the Chief Minister and assured him that the Centre would extend all possible assistance and support to improve Manipur’s financial health.
The meeting assumes significance as Manipur continues to face considerable economic challenges following the ethnic violence that began on May 3, 2023. The prolonged conflict severely affected normal life, commercial activities, transportation and revenue generation across different parts of the state.
Earlier, the Chief Minister had stated that the violence had caused substantial damage to Manipur’s economy, resulting in an estimated revenue loss of approximately Rs. 1,200 crore in Goods and Services Tax (GST) collections between 2023 and 2026.
The decline in GST collections has placed additional pressure on the state’s finances, affecting its capacity to meet expenditure requirements while maintaining development activities and essential public services.
The state government’s demand for enhanced central assistance is aimed at addressing these financial pressures and ensuring the continuation of infrastructure projects, welfare initiatives and other development programmes.
The additional funding sought under the SASCI scheme is also expected to help Manipur strengthen its capital investment capacity and support important infrastructure-related activities.
During the discussion, Khemchand Singh reiterated his government’s commitment to maintaining financial discipline, improving fiscal management and ensuring that salaries and pensions are disbursed without delay. He also emphasised the importance of effectively implementing centrally sponsored and externally aided development projects.
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The Centre’s assurance of providing all possible assistance is expected to support Manipur’s efforts to improve its financial condition and maintain development activities amid the economic difficulties arising from the prolonged ethnic conflict.
The meeting reflects the state government’s efforts to secure additional central resources to stabilise its finances, address revenue shortfalls and strengthen the foundation for economic recovery and development in Manipur.
