International Journal of Social Science Research (IJSSR)

Government Finance and Economic Growth in North East India : A comparative Study of Manipur, Nagaland and Assam

Government finance plays an important role for building up a basic infrastructure in a developing economy. And, infrastructure again, is a very important component for growth and development of a country. Above all, government finance influences directly or indirectly to the growth of GSDP of a State. The North East Indian States has a rich ecosystem comprising of various flora and fauna and talented Mankind. Unfortunately, the NER has suffered developmental neglect over the decades since Indian independence in 1947. Many areas of the NER were also impacted by insurgent activity and terrorism related distortion especially in the states of Manipur and Nagaland. Annual plan outlays for Manipur have gone from an expenditure of Rs.1336. 50 crore (in 2007- 2008) to an approved outlay of Rs. 3500 crore (in 2012-2013) and a proposed outlay of Rs. 4398.43 crore (in 2013-14). Similarly for Nagaland annual plan outlays stood at an expenditure of Rs.845.63 crore (for 2007-08) and approved outlay stood at Rs.2300 crore (for 2012-13). In the case of Assam, the total expenditure for 2017-18 is estimated to be Rs 85,923 crore, a 3.5 % increase over the revised estimate of 2016-17. In 2016 -17, there was an increase of Rs 4,764 crore (6.1%) in the revised estimate over the budgeted estimate