State stares at financial crunch

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IMPHAL, Jul 25: The State’s financial condition has deteriorated severely and is virtually staring at an unenviable situation of overdraft, informed a well placed source.
On account of the worsening financial condition, the State is fast approaching the stage of seeking ‘wages and means’ from the Reserve Bank of India (RBI).
The situation is so bad that the Government may not be able to salaries and pensions of its employees and pensioners from September/October.
Out of the monthly non-plan and plan allotments given by the Centre, the State Government has been utilizing the lion’s share in payment monthly salaries and pensions while the remaining amounts are used in purchasing power and payment of loan interests, informed the source.
In view of the worsening financial conditions, approval of the Finance Department has been made compulsory before drawing any Government Bill.
The Government has also written to banks not to allow withdrawal of money without approval of the Treasury.

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