High debt, lower per capita income, inflation— Mizoram has more than a poll battle at hand

Mizoram is all set for a three-way battle between the Mizo National Front (MNF), the Congress party, and the Zoram People's Movement (ZPM) in the November 7 election to all 40 legislative assembly seats.

The state, currently ruled by MNF, a partner of the National Democratic Alliance, has a large service sector-led economy.

Here’s a snapshot of the state in charts:

The MNF rose to power by winning 26 seats in the 2018 election. The then-incumbent Congress party’s tally went down to five from 34 seats in 2013. The ZPM made its mark by winning eight seats in its first election in 2018.

The Covid-19 pandemic had a debilitating impact on the state’s economy. While the gross state domestic product (GSDP) grew at a steady pace before, it contracted by 8.15 percent during the pandemic-ravaged FY21.

Although supported by a favourable base effect, the GSDP grew by 12.58 percent in FY22, which could indicate that things are getting back on track.

However, the strain on the economy led to a significant increase in government borrowings. Mizoram’s fiscal deficit widened to 7 percent of the GSDP in FY23. This clearly was in breach of the target set in the Mizoram Fiscal Responsibility and Budget Management (Amendment) Act, 2020, (FRBM Act).

While the fiscal deficit estimated in the FY24 budget matches the target set by the FRBM Act, it remains to be seen whether the state government will meet it.

On a positive note, the state’s unemployment rate is lower than the national average.

Mizoram also had a higher per capita income than the national average. However, it declined from FY21 to FY22.

While per capita income declined, average general inflation has stayed higher than the national average since FY20. Inflation in Mizoram was as high as 10.3 percent in FY21.

Mizoram’s economy is predominantly led by the service sector. The sector accounted for more than half of the gross state value added (GSVA) and continues to be the fastest-growing sector in the state.

However, Mizoram’s startup ecosystem remains dismal, with only 12 recognised startups, according to the latest data. The ministry of Commerce said 173 people work as employees in startups in the state.

The state, however, has a high digital penetration with a 93.16 percent tele-density and 11.5 million internet subscribers.

In terms of central schemes implemented in Mizoram, the state opened about 371,000 Jan Dhan accounts, with the majority from rural and semi-urban bank branches.

Only about 3 percent of the population has taken an LPG connection through the Pradhan Mantri Ujjwala Yojana. As much as 16.2 percent of the households do not use clean fuel for cooking, according to the National Family Health Survey 2019-21.

The Social Economic Development Policy Scheme is the flagship scheme of the Mizoram government and provides direct monetary assistance to beneficiaries for starting or continuing ventures in sectors that can help achieve sustainable development.

The MNF has already said it will continue the scheme if voted back into power.

The Mizoram State Health Care Scheme provides medical insurance of up to Rs 2 lakh per year for its beneficiaries. As per local media reports, 26,569 people enrolled for the scheme in this financial year.