“We Are Committed to Getting Manipur Back to Normalcy,” says Sitharaman

New Delhi: Union Finance Minister Nirmala Sitharaman on Tuesday reaffirmed the central government’s commitment to restoring normalcy in Manipur and pledged full support for the state’s economic growth.

Addressing the Rajya Sabha during the passage of Manipur’s budget for the current fiscal and the vote of account for the first half of 2025–26, Sitharaman urged opposition parties to support peace efforts rather than engage in blame games.

Defending Prime Minister Narendra Modi’s absence from the violence-hit state, Sitharaman pointed out that past prime ministers, including PV Narasimha Rao and IK Gujral, had not visited Manipur during previous crises. She highlighted the 1993 clashes between Nagas and Kukis, which resulted in 750 deaths and the destruction of 350 villages under Congress rule, yet no central leader visited the state at the time.

She assured the House that the government is focused on Manipur’s recovery, stating, “We extend the fullest support to the state… so that the recovery of Manipur will be sooner than later.”

Sitharaman acknowledged the economic setbacks due to recent unrest but expressed optimism about future growth, expecting the Gross State Domestic Product (GSDP) to show improvement as law and order stabilize. She also highlighted the Centre’s extensive security measures, with 286 companies of the Central Armed Police Forces and 137 companies of the Army and Assam Rifles deployed in the state.

The minister criticized Congress’s handling of Manipur during its tenure, pointing out that from 2002 to 2017, the state endured 620 bandhs, economic blockades, and a loss of ₹2,828 crore. She recalled the 2011 economic blockade, which lasted over 120 days, causing severe shortages and skyrocketing prices of essentials, without any central leader visiting the state.

To aid Manipur’s recovery, Sitharaman outlined several financial measures, including ₹913 crore under Special Assistance for State Capital Investment for 2024–25, and the creation of a ₹500 crore contingency fund. The state’s budget projects total receipts of ₹35,368.19 crore, with capital outlay increased by 19% to ₹7,773 crore. Allocations include ₹2,000 crore under Special Assistance to States for Capital Investment, ₹9,520 crore for the social sector, and ₹2,866 crore for police incentives in sensitive areas.

Funds for relief and rehabilitation of displaced persons have also been earmarked, with ₹15 crore for temporary shelters, ₹35 crore for housing, ₹100 crore for relief operations, and ₹7 crore for compensation. The fiscal deficit is estimated at 3.42% of GSDP for 2025–26, while total outstanding debt is projected at 37% of GSDP.

Manipur remains under President’s Rule following the proclamation under Article 356 of the Constitution on February 13, 2025. Consequently, the state legislature’s powers are now exercisable by or under the authority of Parliament.

Sitharaman concluded by reiterating the Centre’s commitment to bringing peace and prosperity to Manipur, aligning with Prime Minister Modi’s vision of “Viksit Bharat.”