IMPHAL: As part of their consultations, a delegation from the 16th Finance Commission led by its chairperson Arvind Panagariya met Manipur Chief Minister N Biren Singh to discuss better expenditure of central funds for the state's development.
The consultations primarily centered around the optimal utilization of funds under the Centrally Sponsored Schemes, proposals for grants-in-aid for developmental activities in critical sectors, and specific projects that would drive the economy in Manipur.
He underlined that the state projects be aligned with central financial support so that there is maximum economizing of the outcome and the development region sustainable.
He further underlined that India is focusing on the economic growth of Manipur by careful allotment of funds. The main financial discussions included expenditure on GSDP, liabilities outstanding in proportion to GSDP, and the fiscal deficit.
Panagariya further disclosed that in the 16th Finance Commission, the state government has proposed some changes in the ratio of fund distribution, which is different from the previous 15th Finance Commission.
He further said that the state government had recommended increasing its percentage share of vertical devolution from the present 41 percent to 50 percent. According to the 15th Finance Commission, 41 percent of the divisible pool goes to the state, while the central government receives 59 percent.
He also mentioned that Manipur's share among the 28 states of India is partly demographic, especially the total fertility rate. According to the 15th Finance Commission, the states with fertility rates get a higher share. But the Manipur government has proposed this criterion to be dropped and the 16th Finance Commission to do something about the issue.
Panagariya further added that the state being more or less poorer compared to the richest states, the share size should be more, especially for the non-self-raising states.
The state also suggested that while distributing the fund its overall land area, especially the forest area, be taken into consideration.
The chairman said the state's revenue expenditure was quite comparable with others, in terms of per capita income, and might as well be at par with some others and could well be comparable to the country's average. He reacted to media queries on the state's revenue.
16th Finance Commission members Manoj Panda, Ajay Narayan Jha, Annie George Mathew, and Ritvik Pandey accompanied him.
The Manipur chief minister, N Biren Singh later shared on X that he met with the 16th Finance Commission to discuss an efficient use of funds via centrally sponsored schemes.
In his blog on X, he mentioned how the discussions had been centered around the utilization of funds granted to the state through such initiatives, proposals of grants-in-aid to various departments, and the execution of concrete projects that would spearhead economic change in the state of Manipur.
There were also several ministers, chief secretary, and other top officers present at the cabinet meeting.
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