IMPHAL, June 1 – With the stated objective of reaping the maximum benefits from the 12th Finance Commission, the State Government has approached the Commission to earmark a sum of Rs 14,000 crore for the State in the next five year Plan, which will come into effect from April next year and to set aside Rs 1000 crore to enable the State face its peculiar problems. The State Government submitted its presentation to the Commission team led by its Chairman C Ranga-ranjan, who arrived at the State on Sunday.
The Commission team left for Aizawl today after meeting representatives of the Government at Raj Bhawan on Monday. A source from the State Finance Department said that the State Government is seeking the Rs 14000 crore sop from the 12th Finance Commission under
the general, economic and social sector. The amount sought is to make up for the deficit incurred following the implementation of the 5th Pay Commission, to enable the State to increase the DA of employees and to make up for the shortage of the 11th Finance Commission. The Government also urged the Commission to help in waiving off the loan interest taken from the Centre.
During a discussion held between the Government and the Commission team at Raj Bhawan at 8 am on Monday, Chief Minister O Ibobi made it clear that self employment avenues ought to be provided to the educated unemployed youth as such a condition provides the ideal situation for the armed movement to flourish. The Commission team was also reminded of the fact that Manipur was granted Statehood taking the geo-political reality into consideration and since Manipur is not richly endowed, special attention ought to be paid to the State. The Government also urged the Finance Commission to study the avenues which can provide employment opportunities to the educated unemployed youth.
Chief Secretary AP Sharma highlighted to the Commission members that Manipur is today in dire straits because of the extremely poor assistance given by the 11th Finance Commission. Stating that the State’s share of 7.9 percent of Central share taxes is too little, the Chief Secretary urged the Commission to increase it to 45/50 percent. To enable the State to face its own peculiar problems, the Government also urged the Commission to set aside Rs 1000 crore. The amount is meant for the Assembly Secretariat, High Court and capital project (Rs 250 crores), LDA (Rs 30 crores), police modernisation, MU and local bodies.
After carefully listening and going through the presentations of the State Government, the Chairman of the Commission, assured that the 12th Finance Commission will try to evolve suitable procedures to assess the resources and requirements of Centre and the States. He also advised the State Government to look for avenues to generate income and revenue. He noted with concern that the fiscal deficit of Manipur was 9.9 percent of GDSP in 1999-2000, and 6.6 pc in 2003-2004. A number of senior Ministers were present at the meeting with the Commission team.