Imphal | Manipur’s outstanding public debt rose to Rs 16,193.78 crore at the end of 2024-25, with the state’s fiscal deficit reaching 4.16% of Gross State Domestic Product (GSDP), exceeding the 3% limit prescribed under the state’s Fiscal Responsibility and Budget Management (FRBM) Act, the Comptroller and Auditor General of India has said.

Of the total outstanding debt, Rs 10,638.89 crore is due for repayment over the next 10 years, highlighting the pressure on the state’s finances, according to the CAG report. The audit also found that the government overstated its revenue surplus and understated the fiscal deficit by Rs 0.61 crore after revenue expenditure was incorrectly classified as capital expenditure.

In another instance, the state incurred an unbudgeted expenditure of Rs 96.69 crore towards repayment of loans and interest liabilities of the Planning and Development Authority and the Manipur Police Housing Corporation. The CAG flagged major shortcomings in the accounting and monitoring of government funds. As of March 31, 2025, 7,729 utilisation certificates involving Rs 12,390.48 crore were pending, with some dating back to 2003-04.

A total of 2,282 Detailed Countersigned Contingent bills involving Rs 9,448.82 crore were also outstanding. Eight autonomous bodies and authorities had not submitted 27 annual accounts for the period from 2019-20 to 2024-25. The audit also highlighted delays in implementing infrastructure projects. As of March 2025, 138 projects remained incomplete, with Rs 473.53 crore locked up against a combined estimated project cost of Rs 946.11 crore.

The CAG cautioned that prolonged delays could lead to cost escalation and deprive people of the intended benefits of the projects.Salaries and wages remained a major component of the state’s revenue expenditure, accounting for Rs 5,913.18 crore, or 37.75% of total revenue expenditure.

Interest payments also 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 increased to Rs 16,775.60 crore, while own tax revenue stood at Rs 1,611.74 crore and non-tax revenue at Rs 476.51 crore.

Central transfers also increased during the year. Grants-in-aid from the Centre rose by 5.54%, while the state’s share of Union taxes and duties increased by 13.94%.

The CAG recommended a disciplined borrowing strategy, with borrowings focused on asset creation and developmental needs. It also called for rationalisation of committed liabilities, tighter control over interest payments and better targeting of subsidies to create fiscal space for development expenditure.

The auditor further stressed the need for strict compliance with FRBM targets and stronger revenue mobilisation.

It also recommended time-bound action plans to ensure that government departments, autonomous district councils and implementing agencies submit pending utilisation certificates, Detailed Countersigned Contingent bills and annual accounts without further delay.