The Government of Mizoram has been taking up the issue of Structural Adjustment Loan (SAL) for the purpose of solving fiscal imbalances in the State’s finance and for undertaking reforms in the socio-economic and infrastructure sectors. For that purpose, the Government of Mizoram had prepared a project for funding from external funding agencies. The title of the Program is “Mizoram Public Resources Management and Development Program (MPRMP).”

Fiscal Management Unit was established under Finance Department to facilitate various reforms and act as Programme Management Unit and be responsible for daily implementation of the program under the guidance of the PSC. The FMU will also co-ordinate with Project Implementation Unit (PIU) in the various implementing Departments under the program.

The Government of Mizoram implemented the Mizoram Public Resource Management Program (MPRMP) with a US$ 100 million Loan from Asian Development Bank. The Program mainly aims at bringing about the changes in Fiscal Operation of the State in a balanced and sustainable fiscal situation and to enhance the revenue earning capacity of the State Government. The program component includes Tax and Non-Tax Reforms, Debt Management, Public Expenditure Reforms, Sectoral improvements in Health and Education Sectors, Pension Reforms, and PSE Reforms.

Funding Pattern:

Structural Adjustment Loan (SAL) has been proposed by the Government of Mizoram to the Asian Development Bank for funding as Externally Aided Projects (EAP) through the Government of India. As the Structural Adjustment Loan is an external assistance in the form of Externally Aided Project (EAP), the Fund will be received through the Government of India, Ministry of Finance in the form of 90% grants and 10% Loan. The proposed loan amount of $100 million will have a fixed term of 20 years.

(1)Tranche Money



Tax and Non-Tax Reforms:


To bring changes in Fiscal Management and Revenue earning capacity of the State and to improve the revenue collection in respect of all the departments.

FMU is entrusted with Tax and non-tax Reforms. This has been an important program component in the ADB assisted Mizoram Public Resource Management Program. Under this program, ADB has put forward certain policy / reforms actions to be achieved by the Government of Mizoram which will affect the tranche wise release of the loan component. By complying these reforms actions, the ADB expects the Government of Mizoram to achieve 20 per cent improvements in own source revenue collection, and reduce tax arrears by 50 per cent.

The reforms have been taken place under the following departments:-

1.Transport Department

2.Land Revenue Department

3.Taxation Department

4.Public Health Engineering Department (PHED)

Debt Management:

The Branch is entrusted with various issues relating to management of debt of the State Government. This includes availing of all kinds of loans in the nature of Internal Debt, Loans from the Government of India. Government Debts are effectively restructured and managed.

The new high cost loan availed by the Government of Mizoram should not exceed the ceiling of 5% of the State GDP.

Legal institutional arrangement for premature retirement of loans, guarantee redemption fund, debt management software and debt database and debt management manual are the main focus area.

Public Expenditure Reforms:

The Branch is entrusted with the matters relating to management of public expenditure rationalized.

Under this, capacity development plan for the cell, system of project appraisal reports for the new projects, computerization of treasuries etc have successfully implemented.

Sectoral improvements in Health and Education Sectors:

The Branch is entrusted with the matters relating to the services in the health and education sector.

Under this, the investment plan for the MHC scheme corpus fund, capacity development nplan for the MHC society, VRS for the teachers, recruitment of new teachers etc are the main focus area.

Pension Reforms:

The Branch is entrusted with the pension reforms covering defined contributory pension scheme for new recruits, agreement with a fund manager for managing the new pension scheme, report of new employees contribution to the pension fund are taken place.

Public Sector Enterprise (PSE) Reforms:

Under this, the branch is entrusted with 5 PSE reforms (viz. MAMCO, ZENICS, ZOHANDCO, MIFCO and ZIDCO) like loss making PSEs are restructured or closed.

In which, option analysis on the restructuring and or consolidation of PSEs including option for privatization or closure and a relevant labor restructuring plan and plans for implementing financing of the proposed restructuring or consolidation and for a public awareness campaign including labor rehabilitation plan takes place.