On Tuesday, Finance Minister Nirmala Sitharaman assured the Rajya Sabha that the central government is fully committed to restoring normalcy in Manipur, emphasising the government’s dedication to the state’s economic recovery. Sitharaman’s remarks came during a discussion on the passage of the Manipur Budget for the current fiscal year and the vote of account for 2025-26.
The minister sought the Opposition’s cooperation for peace in the violence-affected state, urging them to move beyond the blame game. She also responded to criticism regarding Prime Minister Narendra Modi's absence in the state, stating that previous prime ministers, including PV Narasimha Rao and IK Gujral, had not visited Manipur during similar unrest.
Sitharaman acknowledged that the ongoing violence in Manipur had disrupted the state's economic activities but expressed confidence that the state would recover swiftly. "With the improvement in law and order, I expect the Gross State Domestic Product (GSDP) to show recovery this year onwards," she said.
The minister also responded to Opposition concerns about the BJP’s "double-engine government" slogan, defending the central government's actions. She highlighted that both the Union Home Minister and the Minister of State for Home had visited Manipur multiple times as part of efforts to restore peace and normalcy.
In terms of financial support, Sitharaman shared that Rs 913 crore has been allocated under the Special Assistance for State Capital Investment for 2024-25. Additionally, Rs 500 crore has been set aside in the Contingency Fund for Manipur, and the state will receive substantial funds for relief and rehabilitation efforts, including Rs 15 crore for temporary shelter for displaced persons.
The state's budget for 2025-26 outlines an increase in capital outlay by 19% to Rs 7,773 crore and a total expenditure of Rs 34,899 crore for 2024-25. The fiscal deficit is estimated at 3.42% of GSDP, and the total outstanding debt is projected to be 37% of GSDP.
With Manipur currently under President’s rule, Sitharaman reiterated the government’s commitment to the state’s recovery and growth, aiming to bring the state back to normalcy soon.