Manipur CM discusses effective utilisation of funds with Finance Commission

Manipur Chief Minister N Biren Singh engaged in critical discussions with the 16th Finance Commission to leverage central funds for state advancement.

Discussions were held on the effective utilisation of the funds provided to the state through Centrally Sponsored Schemes, proposals for grants-in-aid towards the development of various sectors, and execution of specific projects, etc. in order to bring an economic transformation in the state.

Led by Chairman Dr Arvid Panagariya, the Commission aims to drive economic change in Manipur through strategic fund allocation.

Also Read: 16th Finance Commission chairman urges states to boost revenue for fiscal self-reliance

Earlier this month, the Chairman of the 16th Finance Commission, Arvind Panagariya during a press conference in Nagaland's Kohima, emphasised the importance of states enhancing their own revenue generation to achieve greater fiscal self-reliance. While urging states to focus on boosting internal revenues, he reassured that the regular devolution of grants to states will continue as before.

Speaking at the conference, Panagariya said, “The Commission generally does encourage states to raise as much of their own revenue as possible. Ultimately this revenue itself is a function of the GSDP of the state, and more revenue means that the GSDP is larger, and a larger GSDP is desirable in its own right, because that's what leads to higher capital incomes."

On the Commission’s recommendation to bring resource-crunch Nagaland, which depends mostly on central funding, at par with the rest of the states, Panagariya said the special category status was related to the grants that were given by the erstwhile Planning Commission.