NEW DELHI, June 18: Three months after President’s Rule was imposed in Manipur, Governor Ajay Kumar Bhalla has approached the Central government seeking ₹1,000 crore as special assistance to help the violence-hit state recover from prolonged ethnic unrest that has severely impacted revenue collection and governance.
According to a report by The Indian Express, Bhalla has specifically requested that ₹500 crore of the total be released urgently to address pressing financial needs, including pension backlogs and security-related expenses.
The Finance Ministry has reportedly agreed to allocate ₹500 crore under the ongoing Special Assistance to States for Capital Investment (SASCI) 2025-26 scheme for essential development projects in Manipur.
In a communication sent to Finance Minister Nirmala Sitharaman in May, Bhalla cited drastic reductions in revenue collection following the ethnic violence that erupted in May 2023. This, he stated, has hindered the state’s ability to pay pensions, salaries, and other essential obligations, with pension dues alone amounting to ₹600 crore.
He also flagged that Manipur suffered a tax revenue shortfall of ₹1,554 crore for FY 2024–25, compared to ₹1,528 crore in the previous year. The state had earned ₹1,983 crore in 2022–23, indicating little sign of financial recovery.
Further complicating the financial crisis, the Governor noted that the Ministry of Home Affairs has yet to reimburse ₹300 crore to the state for relief and law and order expenditures. He stressed that the requested grant would help clear backlogs, support displaced persons, and allow the state to fulfil its financial share in various Centrally Sponsored Schemes (CSS), particularly for rural and hill area development.
Bhalla also pointed out that Manipur has been unable to access ₹629 crore under the 15th Finance Commission grants for local bodies since 2021–22 due to its failure to conduct elections for Urban Local Bodies, Autonomous District Councils (since 2020), and Panchayati Raj institutions (since 2022).
Earlier, the Finance Ministry had released ₹500 crore to Manipur in two instalments for revenue loss and economic recovery, which has reportedly been fully utilised.
The Indian Express also reported that ahead of the Union Budget last year, the state government submitted a wishlist to the Centre that included requests for extra allocations beyond the 10% budgetary support earmarked for northeastern states. The wishlist also sought aid for building 5,000 housing units for violence-affected families under Pradhan Mantri Awas Yojana (PM-AWAS), and enhanced security expenditure.
Additionally, in 2023, former Chief Minister N Biren Singh had sought ₹2,000 crore in financial support from the Centre, citing the extensive tax revenue loss due to the ongoing crisis. Singh had also asked for a three-month advance of Manipur’s share in Central taxes in October 2023 to tide over the situation.
