Aizawl, July 17: The Mizoram government is facing a severe financial crunch, with a debt burden of over Rs 13,500 crore (approximately $1.7 billion USD), inherited from the previous administration. This has forced the government to put several development projects on hold, including its flagship “Handholding policy”.

According to an official statement, Chief Minister Lalduhoma revealed that the government’s financial condition is not conducive to implementing big projects in the current fiscal year. He made this statement during a meeting of the Mizoram State Policy Coordination Committee.

Despite the financial constraints, the government has committed to purchasing four crops – ginger, chilli, turmeric, and broomsticks – from farmers. The government will prioritize projects based on the state’s financial condition, said the Chief Minister.

The debt burden, equivalent to 95.6% of the state’s annual budget of Rs 14,209.94 crore in the 2023-24 fiscal, has severely impacted the government’s ability to implement its development agenda. Animal Husbandry Minister Lalsawivunga had earlier revealed that the previous MNF government had left behind a liability of over Rs 13,500 crore.

The government is exploring ways to manage its finances and revive its development projects, but the road ahead appears challenging.