Manipur Chief Minister N Biren Singh while responding to a calling attention move by MLA Surjakumar Okram on Monday concerning the deteriorating state economy due to the violence in the state, said that actual losses in the state economy may not be as anticipated because the state expenditure is being maintained.
During the fifth session of the 12th Manipur Legislative Assembly, he said the crisis has affected everybody. However, the state government has been paying salaries, pensions in time and even provided essential items. The transportation and function of services have not stopped. The Central government is also providing support to the state, he said.
In May 2023, GSDP was reduced to 100 crore but now it has recovered to 130 crore, he mentioned. It means normalcy is returning and the momentum is not stopping, CM Biren said.
The estimated amount of Rs 800 crore lost by the state is in calculation; however, the actual figures will be revealed only after GSDP reconciliation, he mentioned. A committee for studying department wise lost will also be taken up, he said.
He mentioned that the state revenue was reduced to 110 to 150 in the month of August last year, but increased to 130 at present.
He also compared the expenditure during COVID-19 pandemic period with the prevailing unrest and said that in comparison to pandemic, there is not much difference with the present expenditure. In the year 2022-23, the expenditure was 14,000 crore but in 2023-24, a total of Rs 13,000 crore has been incurred till February 2024, he added.
Since there is not much difference in the expenditure, the state can maintain it within the amount, he said, adding that the economy will easily recover if there is no further crisis.
Regarding airfare, he informed the house that airfare is handled by an autonomous body; therefore, the Ministry of Aviation has no hand in that. However, the state will try to send letters to the autonomous body for reducing airfare.
Concerning the loss of the economy due to the internet ban in the state, he said that the loss in this sector is not more important than safety and security of the state.
In connection with illegal road tax, he expressed his strong disapproval of such practices and appealed to stop such activities. No action has been taken up against those seeking donations as the government does not want to give undue pressure and tensions on the general public at the moment, he said.
Responding to a starred question put up by MLA Surjakumar Okram on overall economic loss due to the ongoing violence, he said that the overall economic losses of the state due to the ongoing unrest will be known only when the Gross State Domestic Product (GSDP) of the state is reconciled with Ministry of Statistic and Programme Implementation, government of India.
The Finance department has also done an assessment of the loss to the state’s own revenue, with a focus on state goods and services tax (SGST), he mentioned. It was estimated that the state may lose around Rs 800 crore as state’s own taxes during the current financial year, which can be an indicator of the impact on the economy, he said.
Losses in the GST collection were seen in certain sectors when compared to FY 2022-23. Automobiles had seen the highest losses followed by iron and steel and electrical machinery and equipment. However, the impact on the services sector including construction services were minimal, he said.
In the meantime, various assessments are being done by different departments, he said. For instance, the home department is currently assessing damages to houses and personal properties and belongings on account of the current unrest, through the deputy commissioners. Agriculture department had done their assessment and estimated the loss of about Rs 38 crores, which is on account of paddy crop loss, he added.
As estimation of GSDP requires data collection from various data sources, government departments, PSUs etc, and there is time lag in receiving such data, the actual impact on the GSDP of the state will be known in due course of time. Some concrete data will emerge during FY 2024-25 and actual GSDP will be known during FY 2025-26, he informed.
The state government treasury expenditure has not reduced significantly and as the expenditure contributes a major portion of the state GSDP, the impact on the GSDP may be lesser than anticipated, he added.
Although not a direct compensation, various measures were taken by the state government to reduce economic impact on the general public, he added.
Can’t waive-off loans: CM Biren
CM Biren on Monday said that the ongoing crisis has affected everyone, impacting normal lives and business sectors but that loans cannot be waived-off as the RBI guideline does not have such provision.
The state government cannot take over the repayment of loans either, he said.
The chief minister said so during the 5th session of the 12th Manipur Legislative Assembly following a calling attention moved by MLA Th Arunkumar on the appeal of Meetei Tribe Union to waive-off loans of the loanees.
The chief minister informed that on June 21, 2023, the state government declared the entire state of Manipur as violence-affected so that RBI direction 2018 can be enforced in the state. So, as per the declaration, the direction of RBI has been enforced and assessment started, the CM added.
Following that, a 12-month moratorium was announced and repayment month was extended till March, 2024, the CM added.
Further, a notice was issued to submit grievances to concerned banks by every loanee till September 20, 2023. However, it was not submitted and hence, the submission for grievances was extended till December, 2023 and again it was extended till March 20, 2024. Stating this, the chief minister appealed to all loanees to submit their grievances by March 20, 2024.
The CM also said that waiving off loans may not be possible though they are trying to relax the period for repayment of loans.
