The correct answer is: All of the above.
Unanticipated expenditure due to natural disasters can have a significant impact on a state’s fiscal stability. For example, in 2015, Manipur was hit by a series of floods and landslides that caused widespread damage and displacement. The state government had to spend a significant amount of money on relief and rehabilitation efforts, which put a strain on its finances.
Low tax compliance is another potential challenge to fiscal stability. When taxpayers do not pay their taxes, the government loses revenue that it needs to fund essential services. This can lead to a decrease in the quality of public services, such as education and healthcare.
Political instability can also have a negative impact on a state’s fiscal stability. When there is frequent change in government, it can be difficult to implement long-term fiscal plans. This can lead to a lack of investment in infrastructure and other areas that are essential for economic growth.
In conclusion, all of the options listed in the question can pose a challenge to fiscal stability in Manipur. It is important for the state government to take steps to address these challenges in order to ensure long-term economic growth and development.
Here are some additional details on each of the options:
- Unanticipated expenditure due to natural disasters: Natural disasters can cause widespread damage to infrastructure and property, as well as loss of life. This can lead to a significant increase in government expenditure on relief and rehabilitation efforts. In addition, natural disasters can disrupt economic activity, leading to a decrease in tax revenue.
- Low tax compliance: Low tax compliance can occur for a number of reasons, including a lack of awareness of tax laws, a belief that taxes are unfair, or a lack of trust in the government. When taxpayers do not pay their taxes, the government loses revenue that it needs to fund essential services. This can lead to a decrease in the quality of public services, such as education and healthcare.
- Political instability: Political instability can occur for a number of reasons, including frequent changes in government, corruption, and ethnic conflict. When there is political instability, it can be difficult to implement long-term fiscal plans. This can lead to a lack of investment in infrastructure and other areas that are essential for economic growth.