Fiscal deficit projected at 2.07% of GSDP; Rs 734 crore earmarked for rehabilitation of displaced families and Rs 914 crore allocated for road infrastructure

Imphal: Manipur Chief Minister Yumnam Khemchand Singh on March 9 presented the revised estimates for 2025–26 and the Budget Estimates for 2026–27 in the Assembly. The CM outlined a roadmap focused on restoring peace, accelerating economic recovery and rebuilding infrastructure across the state.
For 2025–26, the state’s total receipts are estimated at Rs 32,366 crore, while revenue expenditure stands at Rs 32,436 crore. For 2026–27, receipts are projected at Rs 32,339 crore, with a proposed total expenditure of Rs 30,356 crore.
The fiscal deficit for the coming financial year is estimated at 2.07 percent of the Gross State Domestic Product (GSDP). While the outstanding debt is projected at 39 percent of GSDP.
Highlighting the improving law-and-order situation, Singh said the return of stability has helped revive economic activities and development work. He also acknowledged the continued support of the Government of India in restoring order and assisting the state’s recovery.
The Chief Minister noted that the state’s own revenue has shown steady growth, rising from Rs 1,432 crore in 2023–24 to Rs 2,087 crore in 2024–25, and projected to reach Rs 2,887 crore in 2026–27. Fiscal discipline has also helped reduce the deficit from 6.35 percent of GSDP in 2020–21 to 4.16 percent in 2024–25, with the debt burden gradually declining.
A major focus of the budget is the rehabilitation of people displaced by the recent unrest. The Chief Minister informed the House that the Centre extended a Rs 2,198 crore special package in 2025–26 to support security operations, rehabilitation efforts and pre-payment of high-interest loans.
Additional assistance includes Rs 119 crore for construction of 7,000 permanent houses, Rs 70 crore as compensation for loss of personal belongings, and Rs 60 crore for repair of 8,000 partially damaged homes. Funds of Rs 274 crore have also been sanctioned for creating community assets in resettled villages. For 2026–27, the state has earmarked Rs 734 crore specifically for rehabilitation and resettlement of internally displaced persons.
In a significant step toward women’s economic empowerment, the government announced a new scheme targeting 3.5 lakh women through self-help groups. Each beneficiary will receive Rs 10,000 annually through Direct Benefit Transfer, with assistance continuing for three years. The programme has been allocated Rs 350 crore.
Infrastructure development remains a key priority. The budget allocates Rs 914 crore for expansion and maintenance of road networks in 2026–27, along with an additional Rs 60 crore under the state’s rural road maintenance policy.
To strengthen air connectivity in remote areas, the government has allocated Rs 17.20 crore for helicopter and passenger flight services and Rs 10 crore for helicopter-cum-dispensary services under regional connectivity initiatives.
Singh also announced that pending retirement benefits of government employees will be cleared during the current year with necessary financial provisions in place.
He further highlighted that transfers recommended by the Finance Commission of India account for over 40 percent of the state’s total revenue receipts. Under the 16th Finance Commission award (2026–27 to 2030–31), Manipur is expected to receive Rs 65,385 crore as its share of central taxes, along with Rs 1,871 crore for local bodies and Rs 288 crore for disaster response.
The state is also implementing seven externally aided projects worth Rs 9,647 crore across sectors such as connectivity, water supply, sanitation and irrigation, with Rs 1,363 crore allocated for 2026–27.
Major infrastructure initiatives include a Rs 3,647 crore rigid pavement project in Imphal city, with similar works planned in hill district headquarters. Since 2020, the state has also availed nearly Rs 3,570 crore under the Scheme for Special Assistance to States for Capital Investment to support projects in education, health, irrigation and connectivity.
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