Mizoram | Outbreak of COVID-19 led to a monetary crisis in the state

The Mizoram Government has attributed the monetary crisis in the state to the COVID-19 pandemic, along with the lack of revenue transfer from the centre.

According to a report by the Assam Tribune, the Mizoram Government in the latest release stated that "As revenue inflows from the Centre to the states have drastically declined, the total amount of funds that Mizoram expected to receive from the Centre but did not receive, came to more than Rs 2632.58 crore during the last part of 2019-2020 to 2020-21."

According to the report, the total monetary assistance received by Mizoram during the pandemic from Central Government totals less than Rs. 100 crores. The pandemic also dealt a severe blow to the state's exchequer, and the state is yet to overcome the revenue shock.

Matters have reportedly further been worsened by the Centre's new Centrally-Sponsored Scheme (CSS) by which all funds are to be released through the Public Financial Management System. The Indian Government has also introduced the Single Nodal Agency (SNA) for each CSS.

Centrally Sponsored Schemes and Single Nodal Agency

Centrally Sponsored Schemes (CSS) are schemes that are implemented by state governments of India but are largely funded by the Central Government with a defined share of the state. These include schemes like the Mahatma Gandhi National Rural Employment Guarantee Act, Pradhan Mantri Gram Sadak Yojana, etc.

The Single Nodal Agency release, disburse and monitor funds provided to states under the CSS. Accordingly, all funds for the state in a particular scheme are now credited in this bank account, and all expenses by the concerned Implementing Agencies are affected from this account.

Following the new rule, the Mizoram Government had transferred all of the CSS funds which were received after July 2021 to the SNA which is accounted for from September 2021, stated the release.

The Mizoram Government had stated that Treasuries are not closed as has been reported by the opposition parties.

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