The RBI stopped honouring all government bills and cheques which will be followed by all bank branches and offices
Manipur facing an overdraft of over ₹300 crore, the RBI has stopped honouring all government bills and cheques from Wednesday onwards. The order issued by Anita Kumari, Assistant General Manager, however, does not say how long the ban will be in force.
In a confidential letter to the RBI Chairman, she said the RBI order should be followed by all bank branches and offices.Deputy Chief Minister Yumnam Joykumar of the National People’s Party, who holds the Finance portfolio, said recently at a function the “financial position is not comfortable”. Some Opposition MLAs recalled that the BJP had in their election campaign said the State would not be cash strapped since there were BJP governments in Manipur and at the Centre.
Chief Minister N. Biren, who left for Delhi to attend the NITI Aayog meeting, will plead for a bailout by pumping in additional funds, sources say.Meanwhile, the government issued an office memorandum banning all forms of recruitment including regular posts with immediate effect.
The government has been unable to pay salaries and honorariums to certain sections of employees including the Village Defence Force. The VDF personnel have been assisting the police all these years.Despite oft-repeated assurances, the government has also been unable to hike the pension of retired journalists from ₹4,000 a month to ₹10,000.
The Cabinet has authorised the chief minister to take all necessary disciplinary actions to imbibe a culture of financial prudence and propriety in key state government departments, a release issued by the Chief Minister's secretariat said on Thursday.
A thorough investigation of the sanction procedures and financial management would be conducted for all key departments. The government is committed to bringing a new phase wherein financial discipline will be the hallmark of governance. The government also assures its employees that timely disbursement of salaries and benefits will not be impact, the release said.
The chief minister's secretariat issued an order stating that it was noted that huge amounts were withdrawn by Public Works and Power department during the period of March to May, 2019 while the Model Code of Conduct was in force.
The order said that a three-committee comprising Principal secretary V Vumlunmang, commissioner-cum-secretary Nidhi Kesarwani and deputy secretary W Ajit Singh would examine the large withdrawals by other departments.
With PTI inputs
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