Imphal: Manipur Chief Minister Yumnam Khemchand Singh on Wednesday said the prolonged period of ethnic unrest and frequent shutdowns led to a fall of more than ₹1,200 crore in the state’s Goods and Services Tax (GST) revenue between 2023 and 2026, placing considerable strain on the state exchequer.
Chief Minister links revenue shortfall to bandhs and blockades
Delivering remarks at the 52nd foundation day of the All Manipur Working Journalists’ Union in Imphal, the Chief Minister — who also holds the finance portfolio — appealed to civil society organisations to refrain from strikes and road blockades, saying the consequent disruptions had hit economic activity and development.
"I appeal to all civil society organisations in the state not to resort to bandhs and blockades," the Chief Minister said, urging collective effort to restore a conducive environment for recovery.
Singh said the revenue decline had increased pressure on the state’s fiscal health. The remark comes after government data placed before the state legislature last week highlighted a sharp deterioration in key fiscal indicators since 2022-23.
Rising liabilities and cost of debt
Figures disclosed to the Assembly show the state’s outstanding liabilities rose by nearly 54% between 2021-22 and 2025-26, while total interest payments increased by 71%. The finance portfolio-holder noted that interest on internal debt accounted for almost 90% of Manipur’s total interest bill in 2025-26.
Market borrowings have become the predominant source of internal debt: they comprised about 95% of internal debt in 2025-26, up from roughly 84% five years earlier. The government data underlines an acceleration in debt growth after 2022-23.
| Indicator | Change / Level |
|---|---|
| GST revenue loss (2023–2026) | ₹1,200 crore+ |
| Outstanding liabilities (2021-22 to 2025-26) | +54% |
| Total interest payments | +71% |
| Interest on internal debt (share of total interest bill, 2025-26) | ~90% |
| Market borrowings (share of internal debt, 2025-26) | ~95% |
| Debt growth — annual rates | 2023-24: ~10%; 2024-25: ~10.5%; 2025-26: 13% |
Borrowing pattern, central assistance and fiscal outlook
Government disclosures also show loans and advances from the Centre rose sharply over the five-year period, increasing more than sixfold. At the same time, Ways and Means Advances from the Reserve Bank of India and special securities issued to the National Small Savings Fund declined, while loans from financial institutions fell by more than half.
For 2026-27, the state budget includes a provision for debt servicing that is about 6.3% higher than the revised interest liability for 2025-26, indicating debt servicing will remain a significant recurring demand on resources.
Analysts and officials observing Manipur’s fiscal trajectory say the combination of revenue shortfalls and higher borrowing costs constrains the government’s ability to fund development schemes and reconstruction work in areas affected by violence and displacement.
Impact on livelihoods and services
The Chief Minister traced the revenue loss to repeated shutdowns and blockades that have disrupted trade, transport and normal business operations since ethnic violence erupted in May 2023. The state recorded multiple rounds of unrest, with large-scale displacement and property damage, including in recent months where Naga and Kuki-Zo communities were reported to have clashed.
Manipur Home Minister Konthoujam Govindas told the Assembly on September 3 that at least 306 people had died and thousands rendered homeless in the violence since May 2023 — numbers the Chief Minister cited as part of the broader context for the economic disruption.
- The revenue shortfall will reduce funds available for reconstruction and welfare schemes.
- Higher interest payments will crowd out capital expenditure in future budgets.
- Restoring uninterrupted movement of goods and people is crucial for revenue rebound.
In addition to the fiscal announcement, the Chief Minister said the state would increase the monthly pension for journalists from ₹8,000 to ₹10,000, and the monthly family pension from ₹5,000 to ₹7,000. He also said a one-time relaxation would be allowed for journalists who missed contributions to the pension scheme during the conflict to reactivate their accounts.
State authorities face the immediate challenge of balancing pressing relief and reconstruction needs with higher debt servicing obligations, while efforts to restore normal economic activity remain central to reversing the revenue slide.
