Guwahati: Manipur chief minister N Biren Singh informed the legislative assembly on Friday that as of March 31 this year, the state’s total liability is Rs 16,988 crore, but “there is negligible potential risk to state’s financial stability due to contingent liabilities”. Replying to a question by legislator Sheikh Noorul Hassan, Singh, who also holds the finance portfolio, said about 75% of the state’s total borrowing is Open Market Borrowing (OMB). This includes a 50-year interest-free loan from the Centre for capital expenditure and investment starting from the 2020-21 financial year.
Singh’s reply indicated that the state’s borrowings have increased from Rs 746.03 crore in 2016-17 to Rs 2,200 crore in 2023-24. When asked about the total amount of interest paid by the state govt on its borrowings on a monthly basis, Singh replied that the interest payment fluctuates from month to month during a financial year.
The CM added that during the financial year 2023-24, the state is estimated to pay Rs 946 crore in interest on loans. In 2022-23, the amount was Rs 874 crore, and in 2021-22, it was Rs 690 crore. Regarding the mechanism employed for effective management of public debt, the CM replied, “The Fiscal Responsibility and Budgetary Management Act serves as an anchor for the state govt in managing debt.
The borrowings of the state govt are also monitored by the Government of India under Article 293 of the Constitution. The state govt closely monitors public d.