New Delhi: As the tumultuous landscape of Manipur continues to evolve, Finance Minister Nirmala Sitharaman has reaffirmed the central government’s unwavering commitment to restoring peace and fostering economic growth in the state. This pledge comes at a critical juncture, as Manipur navigates the challenges of violence and economic downturn. The minister’s assertions were made during a pivotal discussion on the Manipur Budget in the Rajya Sabha, underscoring the government’s proactive stance in contrast to past administrations.
In the heart of this commitment lies a multifaceted approach aimed at not only reviving economic activities but also ensuring that Manipur emerges stronger from its current turmoil. The central government has been proactive in addressing criticisms, particularly regarding Prime Minister Narendra Modi’s absence from the state during periods of violence. Sitharaman pointed out that past prime ministers, such as PV Narasimha Rao and IK Gujral, also did not visit Manipur during similar crises.
The Union Home Minister and Minister of State for Home have been instrumental in these efforts, with visits to the state to bolster peacekeeping measures. The deployment of significant security forces, including 286 companies of Central Armed Police Forces and the Army, has been crucial in maintaining order. Despite the adverse impact of violence on economic activities, there is optimism about a swift recovery as law and order improve.
Financial support has been substantial, with Rs 913 crore allocated under Special Assistance for State Capital Investment for 2024-25 and a Contingency Fund of Rs 500 crore established for Manipur. The state’s budget reflects a significant increase in capital outlay by 19% to Rs 7,773 crore, alongside allocations for social sectors and relief measures for displaced persons. These include Rs 15 crore for temporary shelter, Rs 35 crore for housing, Rs 100 crore for relief operations, and Rs 7 crore for compensation. Additionally, Rs 2,866 crore has been earmarked for incentives to police personnel in sensitive areas.
Manipur is currently under President’s rule, following a proclamation on February 13, 2025, which has placed the state’s legislative powers under Parliament’s authority. The fiscal deficit for 2025-26 is projected at 3.42% of the Gross State Domestic Product (GSDP), reflecting ongoing efforts to stabilize the state’s finances.
