As per new policy, the government of India removed the special category status given to North East states of India, directly affecting the funding system of NE states from Government of India as they reduced some of the central assistance funds that worth to around Rs. 1500 Crores.

Associate professor, Manipur University, Chinglen Maisnam made the statement during a public discourse on “Financial Crisis in Manipur” at Manipur Press Club Imphal today. He pointed out that the abolition of the planning commission is the root cause of the present financial crisis in the state.

Chinglen said that the present financial collapse did not occur all of sudden but it is a gradual process that started from the replacement of Planning Commission by National Institution for Transforming India (NITI) Aayog and got intense with due course of time.

Chinglen said, another reason for an overdraft of more than Rs. 274 Crores is a misappropriation of funds by state leaders. He said, even from this limited budget, the leaders of the state mismanaged the money with the concept ‘Profit First, Power First’ instead of bringing development.

Disapproving the assurance of state leaders in solving the present financial crisis, he said that the state government is appeasing people that GOI will release the fund from June 21 but it will not be a solution that will sustain for long unless the overdraft money is recovered.

In this critical juncture, when central leaders are trying to centralised every sector, the leaders of the state still focusing for power giving no attention to the problems of the state, he added and also urged people of the state to choose a right and deserving person as leaders of the state.

Delivering his keynote address, state secretary, CPI, Manipur, L. Sotinkumar said suggested the need of a resource mobilization instead of waiting for funds from the Centre. He also informed that a financial crisis happens even before but it was not that critical like present situation.

He apprised that the present financial crisis shows that the BJP had used muscle and money power excessively in recently declared MP election. In connection with this, CPI had lodge complaint to Election Commission of India on June 18, he added.

Showing his resentment of giving a vote to BJP in MP election, he said that people of the state gave their mandate to BJP candidate despite having knowledge of passing Citizenship Amendment Bill if BJP came into power. The election results were a clear indication that even the civil society organisation are in favour of BJP.