By Rabindra Nath Sinha
KOLKATA: Budgetary provision and mid-year revision for Manipur for fiscals 2024 and 2025 lost much of their relevance as the small state, currently under President’s rule since February 13, was witness to widespread ethnic violence that erupted on May 3, 2023 and higher spending on security had to be the administration’s immediate response. Fund allocation for the police establishment rose sharply, necessitating steep cuts in allocations, inter alia, for rural development, agriculture, irrigation and flood control. The Centre was less than generous in immediately stepping up assistance. [N Biren Singh quit as chief minister on February 9].
In the highly disturbed conditions, one of the worst casualties was the 100-day job scheme under MNREGA. A telling account of which was given by Outer Manipur Congress Lok Sabha member Alfred S Arthur in the House on Tuesday, March 11. Arthur said : “There are only 25 mandays of work given in Manipur ….. If the Centre does not pay the dues to the state, why will the workers come for work? For the last two years, dues of Manipur have not been cleared. The last payment was made in March 2023”. [Perhaps, indicating some improvement after the imposition of President’s rule, Manipur’s AITUC chief L Sotinkumar told IPA that person days of work currently stood at around 30 and his organization is keeping the situation under watch for posing the issue to the authorities].
Certain figures speak for themselves. Against the actual expenditure of Rs 2,147 crore for 2022-23 for the police establishment, the budgeted provision for 2023-24 was Rs 2,418 crore which was revised to Rs 3,210 crore, which marked a step-up of 32.8 per cent. For 2024-25, the provision of the police establishment was scaled down by nine per cent to Rs 2,911 crore, but there is no information yet on the actual expenditure But, indications are that the expenditure was higher.
The corresponding figures for 2022-23 and 2023-24 for rural development actual, budgeted and revised estimates (RE) were Rs 2052 crore, Rs 4857 crore and Rs 2,733 crore respectively, which translated into a reduction of as high as 43.7 per cent. An attempt was made to correct the situation to a certain extent by raising the allocation to Rs 4,200 crore, which marked an increase of 54 per cent over cent 2023-24 RE. The actual expenditure figure when available may throw light on how much, if any, was diverted.
The relevant figures for agriculture and allied activity for 2022-23 and 2023-24 were Rs 509 crore, Rs 1,297 crore and Rs 947 crore respectively, which showed a cut of 27 per cent in RE. In a bid to revive agricultural and allied activity, a 33 per cent hike over RE to Rs 1,257 crore was made for the last financial year. Information on actual is not available. For irrigation and flood control, the finance department had to effect a decrease of 40.6 per cent. A correction was attempted in the provision for 2024-25 with a 39 per cent mark-up over RE for 2023-24. It is to be noted that actuals for 2023-24 too are not available department-wise.
As the situation evolved and deteriorated in the course of 2023-24 and the first of the last financial years, thousands of people fled their residences and took shelter in relief camps. The number soared to 60,000 plus necessitating huge expenditure on maintaining relief camps. New Delhi loosened its purse strings gradually in the course of 2024-25 and fund flows saw a quantum jump in March, the terminal month for the fiscal. As chief minister Biren Singh’s position weakened politically and Kuki-Zos not only began their campaign against the discrimination practiced by the Meitei-dominated administration but also asked for separate administrative arrangement, Union home minister Amit Shah was substantially in control, particularly over the tribes-dominated hills. New Governor Ajay Bhalla, who has had a pretty long innings as Union home secretary before his posting in Imphal, tightened his grip over the state government soon after assuming office in early January. Release of central funds thus received greater attention in the last four-five months of 2024-25 and particularly in March.
A stock-taking by Manipur’s finance department shows that as much as Rs 869 crore, which works out to 60 per cent of Rs 1,437 crore for entire 2024-25 under the Scheme for Special Assistance to States for Capital Investment (SASCI) was made available by New Delhi in March alone. The total payment under SASCI for 2024-25, it has been claimed, is the highest ever for any fiscal. The SASCI figure also included a special funding of Rs 320 crore for clearing liabilities for ongoing and completed PWD works. A more liberal stance in this regard has been assured by North Block for 2025-26, the department’s stock-taking exercise has recorded.
Apart from SASCI, releases from the treasury in March, which totalled Rs 1,926 crore, were for Centrally Sponsored Schemes (including state’s share), externally aided projects, support for internally displaced persons (IDPS) in relief camps and Rs 25 crore for permanent housing for IDPs. The finance department has claimed that for the first time an additional (fifth) instalment under the National Health Mission was received from New Delhi. Between mid-February and March the state cleared Rs 270 crore as pension backlog.
Timely payment of salaries for government staff and other categories of wage earners in government schemes too has been assured by the Governor-led administration. Political watchers, while being generally appreciative of the improved fund release by the Centre, attribute the toned up release mechanism to the trenchant criticism by the Opposition in Parliament and outside of the incompetent handling of the Manipur crisis right from the start and Prime Minister Narendra Modi not making it to Manipur in these 23 months. (IPA Service)