The Manipur State Committee of  CPI(M) recently met the Sixteenth Finance Commission team on 8th November and explained the need to increase the devolution of Central taxes from the present 42% to 50% to the State. The same was demanded by Narendra Modi when he was the Chief Minister of Gujarat, explained  Kshetrimayum Santa  Secretary, CPI (M) Manipur State Committee who represented the party along with  Sarat Salam senior communist leader of the state.

They recommended that the 16th Finance Commission should increase the devolution of Central Taxes to the states from the existing 42% to 50% looking into account the fact of remoteness, limited tax base and high-cost parameters while assessing the financial needs of the state. 

They also highlighted that Manipur is already facing an acute debt situation and future fiscal stress due to interest payments that have to be paid to service its past high debt.

The communist party further highlighted that the status of Special Category States, in any case, should not be discontinued. The financial facilities used by the state as a special category state should be allowed to continue.

They also recommended doubling the amount under the Calamity Relief Fund, 100% sponsored by the Centre.

The CPI(M) Manipur earnestly urged the Commission to make an objective and realistic assessment of the State’s Revenue Expenditure Liability trends, especially on account of its Salary, pension and Interest burdens.

They also highlighted that MGNREGA which has been one of the main avenues for the Centre to employ poor people in rural areas has failed to provide even 32 days of employment to workers in 2023-24. The centre has stopped releasing funds to the state under  MGNREGA for reportedly not submitting the Utilisation Certificate for 2022-23.

They also highlighted the internet shutdown in the state resulting in severe economic losses and job losses. The recommendation echoed that the ongoing conflicts in Manipur- a complex location bordering Myanmar have caused huge economic costs, driven up inflation, worsened the fiscal and financial situation and damaged institutions.

The conflict has created a historic breakdown of the economy, with record job loss and unemployment creating an incomparable human catastrophe, the CPI(M) state party memorandum stated. 

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