Manipur’s Chief Minister N Biren Singh has reassured citizens that the current crisis hasn’t severely impacted the state’s economy as initially feared. Addressing concerns during the ongoing 5th session of the 12th Manipur Legislative Assembly, he provided insights into the state’s financial resilience amidst ongoing challenges. Responding to a motion raised by Congress MLA Surjakumar Okram regarding the economic downturn due to recent violence, CM Biren highlighted that while exact economic losses are yet to be quantified, preliminary assessments suggest potential setbacks. The state’s finance department estimates a possible loss of approximately Rs 800 crores during the current financial year, primarily attributed to the ongoing crisis.
Despite these challenges, CM Biren emphasized that the state’s economy hasn’t suffered to the extent anticipated. He pointed out that the consistent expenditure from the state government treasury, which significantly contributes to the Gross State Domestic Product (GSDP), indicates a degree of stability. Expressing optimism, CM Biren underscored the substantial support received from the central government, including financial aid amounting to Rs 203.25 crore out of the approved Rs 400 crore for the first phase. Additionally, the Government of India has increased tax devolution to Rs 600 crore and expanded the borrowing space to 3.5 percent of GSDP, reflecting confidence in the state’s economic stability.
While acknowledging losses in sectors like automobiles, iron and steel, and electrical machinery, CM Biren highlighted minimal impact on the services sector, including construction services. In response to MLA Surjakumar’s concerns, CM Biren assured efforts to urge the central government for income tax exemptions during the crisis period and to address escalating airfare costs. He also pledged to explore the formation of an expert committee to assess sector-specific losses and devise a strategic roadmap to mitigate financial consequences.