16th Finance Commission team discusses with CM Biren on Fund Utilisation

Imphal: 16th finance commission team led by its chairman Arvind Panagariya held discussion with chief minister N. Biren on utilisation of central funds for Manipur, here on Friday.

The discussions focused on the efficient use of funds received under centrally sponsored schemes, proposals for grants-in-aid towards development across key sectors, and the implementation of targeted projects intended to catalyze Manipur’s economic transformation.

“To maximise economic growth state should align state projects with central support to encourage sustainable development within the region,” said Panagariya while addressing to reporters at Classic Grande hotel.

Panagariya said the state government has recommended some changes to be made on both vertical and horizontal devolution in 16th finance commission from 15th finance commission.

The state recommended that 50 percent vertical devolution fund is to be granted to the state, as the state’s currently shares 41 percent. Based on the 15th Finance Commission, 41 percent divisible pole goes to state and 59 percent to central government,” Panagariya said.

He said 15 percent share of state is determined by demographic changes, lower the fertility rate the higher the share of the state.

Manipur government recommended this criteria should not be use in devolution of 16th finance commission, he said.

The state has also recommended to look in context of total land area of the state while devolution in context with forest, he added.

The chairman was accompanied by Manoj Panda, Ajay Narayan Jha, Annie Georce Mathew and Ritvik Pandey of the 16th Finance Commission.

Manipur Chief Minister N Biren Singh on X posted that he had discussions with the 16th Finance Commission on Friday on effective utilisation of funds provided through centrally provided schemes.

“Discussions were held on the effective utilisation of the funds provided to the state through Centrally Sponsored Schemes, proposals for grant-in-aids towards development of various sectors, and execution of specific projects, etc. in order to bring an economic transformation in the state.”