Imphal, April 02 2012: With a whopping amount of Rs 700 crores withdrawn by the Government of Manipur from its account on the last day of the financial year (March 31), the state is technically a bankrupt entity at present as not a single penny remains in the state's account.

According to a Finance Department source, the amount of liabilities faced by Manipur at this juncture cannot be precisely confirmed as Reserve Bank of India is yet to convey the deficit amount to the Government even though it is without an iota of doubt that Manipur's financial position is abysmal.

Informing that banks are in the process of forwarding their annual report to the RBI today, the source confided that Manipur Government might seek financial assistance from the Centre as 'ways and means' advance to ameliorate its own financial position, which is in dire straits.

Moreover, the state is also likely to approach the Centre for special grants to address the situation, the source maintained adding that the exact financial position of the State can be officially confirmed in a day or two.

Some important highlights
* With the State Government adopting the recommendation of the 6th Pay Commission, it expenses by way of meeting the salaries of its employees shot up from Rs 152 crore to Rs 200 crore annually.

* State capable of contributing only about 10 percent of the budgetary amount of Rs 6000 crore from its resources.

* The Planning Commission has permitted the Ministry of Finance to release Rs 118.51 crore.

Source: The Sangai Express