Financial crisis in Manipur will be over, RBI likely to lift ban on fund transactions: CM Biren Singhhttps://indianexpress.com/article/north-east-india/financial-crisis-in-manipur-will-be-over-rbi-likely-to-lift-ban-on-fund-transactions-cm-biren-singh-5791343/

Financial crisis in Manipur will be over, RBI likely to lift ban on fund transactions: CM Biren Singh

Manipur is currently grappling an overdraft of Rs 247.48 crore, exceeding 36 days in a quarter, as per the scheme of ‘Ways and Means Advances’ for the year 2019-20. Subsequently, the RBI has also imposed a band on the withdrawal of funds from the government’s account.

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“The matter would be resolved in a few days. I apologise to the public and assure that similar problem will not occur in the future,” Singh said. (Express: Renuka Puri/File)

Manipur Chief Minister N Biren Singh Thursday said that the Reserve Bank of India (RBI) is likely to lift the ban imposed on fund transactions by the state government owing to overdraft, in a day or two. Manipur is currently grappling an overdraft of Rs 247.48 crore, exceeding 36 days in a quarter, as per the scheme of ‘Ways and Means Advances’ for the year 2019-20. Subsequently, the RBI has also imposed a band on the withdrawal of funds from the government’s account.

“The financial situation that we are facing owes to some communication gap between departments. The matter would be resolved in a few days. I apologise to the public and assure that similar problem will not occur in the future,” Singh said at a government function.

Speaking to media persons in Imphal at a government function, the chief minister informed that during his recent visit to the national capital, he apprised Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman of the current financial crisis plaguing the state. Manipur is currently reeling under overdraft which has now reached Rs 315 crore.

Upon his request to the finance minister, the ministry directed the RBI to raise open market borrowings of the state up to Rs 795 crores, Singh said. In separate meetings with the leaders, Singh requested for flexibility to decide the quantum of borrowings under open market borrowings within the overall ceiling fixed by the Finance Ministry, an official statement issued by the CMO stated.

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For immediate relief, the Manipur government is borrowing Rs 400 crores from the open market through RBI to neutralise the current overdraft, he said. In addition, the state government will receive Rs 305 crores as state share of Central Taxes in a day or two, he added.

The chief minister said he could also secure approval of different projects worth Rs 176.43 crores from the Ministry of Development of North Eastern Region (DoNER) during the visit.

Out of the total Rs 176.43 crores, Rs 59.06 crores allocated for three projects to be taken up under North East Special Infrastructure Development Scheme (NESIDS), while Rs. 90 crores for 38 projects under Hill Area Development Programme (HADP) particularly for Tamenglong district has also been approved. And Rs 27.37 crores for 16 projects under Flood Relief Works for 2017 damage due to floods in the state have also received approval, he added.