The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman is disappointing for violence-hit Manipur. The budget should have made an immediate and substantial intervention to halt the state’s unprecedented economic collapse, address the ongoing humanitarian crisis, and lay the foundation for long-term peace and development.
A comprehensive relief and recovery plan, along with increased financial assistance and support, was urgently needed. The people of Manipur had hoped for a special economic package. It has little to address the humanitarian and economic distress in the state.
The prolonged violence has resulted in massive loss of life and property, large-scale forced displacement, and an alarming economic downturn. Economic activity in Manipur has plummeted, with soaring inflation,
rising unemployment, and falling incomes pushing households into deeper financial distress. The private sector, particularly MSMEs, a key driver of the state’s economy, has been hit the hardest. As violence persists, the state’s productive base continues to deteriorate.
The budget reveals significant expenditure cuts for Manipur. The Revised Estimate for total expenditure stands at Rs 47.16 lakh crore, with capital expenditure at Rs 10.18 lakh crore. This is Rs 1 lakh crore less than the Rs 48.2 lakh crore initially planned for 2024- 25. Additionally, there have been cuts of Rs 3.4 lakh crore across all Centrally Sponsored Schemes in actual spending.
The allocation for MNREGA, at Rs 86,000 crore, is lower than the actual expenditure in the previous year. In Manipur, the average number of workdays per year has dropped to just 35, far below the mandated 100. Given MNREGA’s crucial role as a lifeline for rural and agricultural workers, this reduction will further erode their purchasing power.
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