The youth wing of the Mizoram Congress has alleged that the state under the MNF rule is witnessing a financial crunch due to “poor fiscal management” as its liabilities have increased by 71.59 per cent in the last four years. The state’s total liabilities have risen by Rs 5,217.53 crore since the Zoramthanga-led government came to power in December 2018, it claimed. A statement issued by the youth Congress said “Mizoram is now reeling under acute financial crunch due to poor fiscal management”.
The state’s total debt is estimated to be Rs 12,553 crore, it said. MNF leaders and government officials could not be contacted for comment on the matter.
However, the government had earlier said it was facing financial crunch owing to “several reasons, including the Covid-19 pandemic and non-receipt of state’s share of taxes and grants from the Centre, amounting to over Rs 2,630 crore from 2019-20 to 2020-21”.
Chief Minister Zoramthanga, who also holds the finance portfolio, informed the state assembly in early September that the government has availed loans amounting to Rs 256.396 crore as ‘overdraft’ for six times during the July 21- August 2 period in the current fiscal.
Besides, the government also availed of loans through a special drawing facility and ways and means advances on several occasions, official sources said. The Ways and Means Advances are temporary advances given by the RBI to governments to tide over any mismatch in receipts and payments.
The state government will again avail of loans amounting to Rs 100 crore through open market borrowing, the sources said. During his two-week long visit to New Delhi recently, Zoramthanga had held meetings with Union Finance Minister Nirmala Sitharaman over the state’s financial condition and sought the Centre’s help.