Imphal: The Comptroller and Auditor General (CAG) of India has flagged mounting fiscal pressure in Manipur, with the state’s outstanding public debt rising to Rs 16,193.78 crore at the end of 2024–25, of which Rs 10,638.89 crore is due for repayment within the next 10 years.
The state’s fiscal deficit stood at 4.16% of Gross State Domestic Product (GSDP) during the year, exceeding the 3% ceiling prescribed under the Manipur Fiscal Responsibility and Budget Management (FRBM) Act.
The CAG also found that the government overstated its revenue surplus and understated its fiscal deficit by Rs 0.61 crore after revenue expenditure was incorrectly classified as capital expenditure. In addition, the state incurred an unbudgeted Rs 96.69 crore towards repayment of loans and interest for the Planning and Development Authority and the Manipur Police Housing Corporation.
The audit flagged significant shortcomings in the accounting and monitoring of public funds. As of March 31, 2025, 7,729 utilisation certificates (UCs) involving Rs 12,390.48 crore remained outstanding, with some dating back to 2003–04.
As many as 2,282 Detailed Countersigned Contingent (DCC) bills worth Rs 9,448.82 crore were also pending. Eight autonomous bodies and authorities had failed to submit 27 annual accounts covering the period from 2019–20 to 2024–25.
Delays in completing infrastructure projects were another concern. As of March 2025, 138 projects remained incomplete, with Rs 473.53 crore locked up against an estimated total project cost of Rs 946.11 crore.
The CAG warned that prolonged delays could result in significant cost escalation while depriving citizens of the intended benefits of the projects.
Salaries and wages continued to account for a substantial share of the state’s revenue expenditure, totalling Rs 5,913.18 crore, or 37.75% of total revenue expenditure. Interest payments increased by 4.67%, from Rs 976.58 crore in 2023–24 to Rs 1,022.23 crore in 2024–25.
Despite the fiscal pressures, Manipur recorded growth in revenue receipts during 2024–25. Total revenue receipts rose to Rs 16,775.60 crore, while own tax revenue and non-tax revenue stood at Rs 1,611.74 crore and Rs 476.51 crore, respectively.
Central inflows also increased during the year. Grants-in-aid from the Centre grew by 5.54%, while the state’s share of Union taxes and duties increased by 13.94%.
To improve fiscal sustainability, the CAG recommended a disciplined borrowing strategy focused strictly on asset creation. It also called for rationalisation of committed liabilities, control of interest payments and better targeting of subsidies to create greater fiscal space for developmental expenditure.
The auditor further recommended strict compliance with FRBM targets and stronger revenue mobilisation.
It also called for time-bound action plans to ensure that departments, autonomous district councils (ADCs) and implementing agencies submit outstanding utilisation certificates, DCC bills and annual accounts promptly.