The main source of revenue for the Manipur state government is taxes. In 2020-21, taxes accounted for 67% of the state’s total revenue. The other major sources of revenue are central government grants (18%), borrowings (12%), and income from public enterprises (3%).
Taxes are compulsory payments made by individuals and businesses to the government. They are used to fund government services such as education, healthcare, and infrastructure. The main types of taxes levied by the Manipur government are income tax, sales tax, and excise duty.
Central government grants are financial assistance provided by the central government to the state governments. They are used to fund specific projects or programs, such as education, healthcare, and infrastructure. The amount of central government grant that a state receives is determined by a number of factors, including the state’s population, its per capita income, and its fiscal performance.
Borrowings are funds that the government borrows from financial institutions, such as banks and the Reserve Bank of India. They are used to finance capital expenditure, such as infrastructure projects. The government has to repay the borrowed amount with interest.
Income from public enterprises is revenue generated by state-owned enterprises, such as electricity companies, transport companies, and banks. This revenue is used to fund government services and to reduce the state’s fiscal deficit.