The Lok Sabha on Tuesday passed the Manipur budget for 2025-26 that proposed an expenditure of ₹35,104 crore, up from ₹34,899 crore envisaged in the budget estimate (BE) of 2024-25 and ₹32,657 crore under the revised estimate (RE) for FY25, even as Union finance minister Nirmala Sitharaman said all financial support will be provided to the northeastern state for economic development.
Replying to the discussion on the Manipur budget, which she tabled in the Lower House a day ago, Sitharaman emphasised that the overall law and order situation has improved in the ethnic strife-torn state, which is currently under the central rule, except for some sporadic incidents.
The Union government imposed the President’s rule in Manipur and placed the state assembly under suspended animation on February 13, days after chief minister N Biren Singh resigned from the post. Consequent to the proclamation issued under Article 356 of the Constitution, the powers of the Manipur legislature are exercisable by or under the authority of Parliament.
“…with the collective effort of both the Centre and state government, there has been an improvement in overall law and order situation in the state, to a large extent, except for some sporadic (incidents),” Sitharaman told the House.
The minister also assured all financial support for faster economic development of Manipur, which has been in the throes of ethnic strife since May 3, 2023. She also informed the Lok Sabha that arms and ammunition looted by mobs in the initial days of violence in the state are being recovered.
Tabling the budget on Monday, Sitharaman had said: “For the year 2025-26, I am proposing a total expenditure of ₹35,104 crore out of the Consolidated Fund of the State. Total Revenue Expenditure is estimated at ₹21,512 crore. Capital outlay is estimated at ₹7,773crore.”
The budget for FY26 estimated total receipts at ₹35,368 crore — ₹27,231 crore revenue receipts and ₹8,137 crore capital receipts. “Total estimates of State’s own tax and non-tax receipts are ₹2,634 crore and ₹400 crore respectively,” she said.
In FY25 BE, revenue receipts and capital receipts were estimated at ₹27,716 crore and ₹7,099 crore, respectively. “This has now been revised to ₹24,374 crore and ₹8,098 crore in RE 2024-25, respectively,” she added.
“The fiscal deficit for RE 2024-25 is projected at 4 % of GSDP [gross state domestic product],” Sitharaman said, adding that the fiscal deficit for FY26 is estimated at 3.42% of the GSDP. “During 2025-26, the total outstanding debt as a percentage of GSDP is projected at 37%.”
The budget projected 19% increase in capital outlay in 2025-26 (BE) at ₹7,773 crore as compared to 2024-25 (RE). “I am at this stage, seeking a ‘Vote on Account’ for the first six months of the Financial Year 2025-26,” she told the House on Monday.
The Manipur budget mainly focused on five areas — improving connectivity, infrastructure development, law and order, social sector development and relief and rehabilitation of internally displaced people.
Taking part in the state budget discussion on Tuesday, Outer Manipur lawmaker Alfred Kanngam S Arthur dubbed the Centre’s budget for Manipur “anti-people” and lacking provisions to address the crisis in the violence-hit state. The Congress MP criticised the Union government for failing to include significant allocations for rehabilitation and economic recovery of those displaced amid the ethnic violence.
Arguing that the budget does not reflect the state’s dire needs, an emotionally charged Arthur said: “I challenge this House without damaging its integrity, out of a clean conscience, that building this nation includes the building of Manipur. If you don’t want to build my state, then you have no right to govern it.”
The Congress leader also criticised the Centre for failing to allocate sufficient funds for displaced people in the budget. “The damage caused by the violence has exceeded ₹20,000 crore. The entire budget doesn’t even cover that,” he said.
Raising concerns about transparency, Arthur cited a government notification stating that allocations for Manipur’s hills — dominated by tribal Kuki-Zo communities — and valleys — inhabited mainly by Meiteis — must be listed separately. “How will we know how much is allocated to which region? The budget must be redone,” Arthur said.
Expressing his frustration at “not being heard”, the Congress MP even suggested relinquishing his Lok Sabha seat. “Do you know how painful it is to return to an empty home, to see people on the streets who have nowhere to go?” he remarked.
After discussion, the Lok Sabha passed the Manipur Appropriation (Vote on Account) Bill, 2025 with voice vote. Other legislative matters, including supplementary demands for grant (second batch 2024-25), and demands for excess grants for 2021-22, also received the nod of the House. The supplementary demands for grants proposed ₹51,463 crore additional spending in FY25.