NEW DELHI, March 18: Finance Minister Nirmala Sitharaman reaffirmed on Tuesday that the central government is committed to restoring normalcy in Manipur and ensuring its economic recovery.

Addressing the Rajya Sabha during discussions on the passage of the Manipur Budget for the current fiscal year and the vote on account for the first six months of 2025-26, she urged the Opposition to support peace efforts in the state rather than engaging in political blame games.

The minister also defended Prime Minister Narendra Modi against criticism for not visiting Manipur, pointing out that previous Prime Ministers, including PV Narasimha Rao and IK Gujral, had not visited the state during past instances of violence.

Sitharaman acknowledged that the ongoing unrest in Manipur has negatively impacted economic activities but expressed confidence in its swift recovery. She assured, “We extend the fullest support to the state… so that the recovery of Manipur will be sooner rather than later. We are all committed to getting the state back to normalcy and ensuring its prosperity.”

The Finance Minister also responded to the Opposition’s criticism of the BJP’s ‘double-engine government’—which emphasizes coordination between the Centre and the state—by highlighting the active role of Union Ministers in addressing the situation.

“Double engine, of course, double engine,” she remarked. “That is why the Home Minister was there for four days, and the MoS Home was there for over 23 days. Please do not compare how you (Congress) handled Manipur with how this government is managing it. We are more sensitive and care deeply for Manipur and every state of this country.”

Key Budget Allocations for Manipur

The Finance Minister outlined significant financial provisions aimed at aiding Manipur’s recovery:
• ₹913 crore under Special Assistance for State Capital Investment in 2024-25.
• ₹500 crore allocated for a Contingency Fund to address urgent needs.
• ₹2,000 crore under Special Assistance to States for Capital Investment (SASCI) and ₹9,520 crore for social sector expenditures.
• ₹157 crore for relief and rehabilitation, including:
• ₹15 crore for temporary shelters for internally displaced persons.
• ₹35 crore for housing for displaced people.
• ₹100 crore for relief operations.
• ₹7 crore for compensation.
• ₹2,866 crore allocated for incentives for police personnel posted in sensitive areas.

Economic Projections and Fiscal Status
• The total receipts for Manipur are projected at ₹35,368.19 crore, up from ₹32,471.90 crore in 2024-25.
• The capital outlay has been increased by 19% to ₹7,773 crore for the financial year ending March 2025.
• The fiscal deficit is estimated at 3.42% of the Gross State Domestic Product (GSDP) for 2025-26.
• The total outstanding debt as a percentage of GSDP is projected at 37%.
• The budgeted expenditure for 2024-25 was initially ₹34,899 crore, but has been revised to ₹32,657 crore in the Revised Estimates (RE).
• The fiscal deficit in RE 2024-25 is projected at 4% of GSDP.

Following a Proclamation under Article 356 of the Constitution on February 13, 2025, President’s Rule was imposed in Manipur. Consequently, the powers of the Manipur State Legislature are currently exercised by Parliament.

Sitharaman emphasized that as law and order improve, economic activities in the state will also witness a gradual recovery. She reiterated the Centre’s commitment to Manipur’s development, ensuring that adequate funds and resources are allocated for infrastructure, relief efforts, and governance.