Manipur to Borrow Rs 400 Cr

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Manipur Chief Minister N Biren Singh, addressing the media in Imphal on Thursday, said that his government is facing financial crisis to the tune of Rs 274.48 crore and will borrow Rs 400 crore from the open market to dole out the overdraft and for providing salaries for its employees.

It may be mentioned here that this is the first major financial crisis of the Biren Singh government after assuming office in 2017.

Further, 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.

“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,” N Biren Singh said.

It is worth mentioning here that since June 12 the state ran into an overdraft to the tune of Rs 274.48 crore, after which the RBI 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.

Biren Singh also informed 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.

He 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.

Meanwhile, the Manipur government is borrowing Rs. 400 crore from the open market through RBI to neutralize the current overdraft.

“The government is also expecting to receive Rs 305 crore as the State share of Central Taxes in a day or so,” the CM further said.

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