India News | Financial crisis in Mizoram due to financial mismanagement: Cong’s youth wing

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The youth wing of the Mizoram Congress argued that the state under the MNF was going through a financial crisis due to “poor fiscal governance” as its liabilities rose by 71.59%. over the past four years. Total government liabilities have increased by 5,217.53 rupees since the Zoramthanga-led government came to power in December 2018, he claimed. In a statement released by the Youth Congress, we read that “Mizoram is currently going through a severe financial crisis due to poor fiscal governance.”

The total government debt is estimated at Rs 12,553 crore. MNF leaders and government officials could not be reached for comment on the matter.

However, the government had previously said it was facing a financial crisis for “several reasons, including the Covid-19 pandemic and not receiving a state share of taxes and grants from the Centre, if rising to over Rs 2630 crore from 2019-20 to 2020-21.

Prime Minister Zoramthanga, who also holds a financial portfolio, informed the state assembly in early September that the government had used its Rs 256,396 crore loans as “overdraft” six times between July 21 and August 2 of the current fiscal year. .

In addition, the government has also used loans several times through special draw mechanism and means and means, according to official sources. Ways and Means Advances are temporary advances given by the RBI to governments to address any revenue and payment discrepancies.

The state government will again avail loans of Rs 100 crore through open market lending, the sources said. During his two-week visit to New Delhi, Zoramthanga met with EU Finance Minister Nirmala Sitharaman on the country’s financial situation and requested assistance from the Center.

(This story has not been edited by our team of editors and was generated from the stream.)

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