Alleged disparities in fund allocation flagged

    17-Mar-2026
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By Our Staff Reporter
IMPHAL, Mar 16 : Retired Principal Chief Commissioner of Income Tax and former candidate of the NPF in Outer Manipur Parliamentary Constituency (2024), K Timothy Zimik, has flagged "stark disparities" in the allocation of funds for the valley and hills, and made suggestions that could ensure "equitable distribution" of the funds and proper development in the hill areas of the State.
In a memorandum, submitted to Governor Ajay Kumar Bhalla and Chief Minister Yumnam Khemchand yesterday, the retired IRS officer highlighted that the capital expenditure for hills earmarked in the State Budget has been minimal each year.
There has been "unequal and discriminatory distribution of resources" between the Imphal valley and the Hill areas of Manipur, he said.
Imphal valley had received a much higher percentage of developmental funds to the tune of 80 percent and above year after year, Zimik said.
While the capital expenditure for the valley in the 2025-26 Budget was 97 percent, that of the hill areas was just 3 percent, Zimik noted.
The valley makes up only 10 percent of the total area of Manipur, and has 57.2 percent of the population according to the 2011 Census, he noted.
"In other words, the State Government has been allocating a very disproportionately low percentage of capital expenditure (for creating new assets) to the hill areas as compared with the valley," Zimik said. Comparing the distribution of capital expenditure between the valley and the hill areas in the last 7 years, Zimik said, the State Government must adopt the six formulas of the 15th Finance Commission and a separate Budget for the hills districts of Manipur to address the "stark disparities and the increasing gap" between the Imphal valley and the hill areas in terms of economic development, infrastructure and basic services. A committee which was set up by the Government has also recommended "a system of Tribal Sub-Plan" for better allocation of funds, instead of the Hill-Valley allocation on adhoc basis being followed at present, Zimik noted.
As recommended by the State committee, the allocation of developmental funds between the hill districts should be based on the formulas adopted by the 15th Finance Commission to ensure equitable distribution of development funds and prevent arbitrary and ad hoc distribution, he said.
Further, a separate Budget is a must to secure proper development in the hill areas of Manipur, he said. As in the case of Panchayati Raj institutions (PRIs), the village authorities should also be funded through State Government grants, he added.