Tripura Chief Minister Manik Saha has urged the 16th Finance Commission to increase fund allocation for the northeastern state. Speaking to reporters on Friday, he highlighted the state’s financial challenges, including the recent flood damage worth Rs 15,000 crore, and emphasized the need for greater financial support to achieve the vision of a developed Tripura (Viksit Tripura) by 2047.
Tripura’s Fiscal Challenges and Need for More Funds
During a discussion with the 16th Finance Commission, the Tripura government presented various reasons why the state requires an increase in fund allocation. The CM also explained why the state government has been unable to provide Dearness Allowance (DA) to its employees at par with central government employees, attributing it to financial deprivation by the 14th Finance Commission.
Tripura’s financial discipline was appreciated by the Finance Commission, as CM Saha pointed out that without maintaining strict fiscal management, the state could have faced bankruptcy.
Tripura’s Dense Forest Coverage and Demand for Special Award Increase
One of the key demands made by the state government was an increase in the special award for dense forest coverage. Currently, 73% of Tripura’s land area is covered with dense forests, which significantly contributes to carbon dioxide absorption and environmental conservation.
The 15th Finance Commission introduced a 10% special award for states with dense forest coverage. However, CM Saha urged the 16th Finance Commission to increase this award to 20% to support Tripura’s environmental efforts.
Tripura’s Infrastructure Development and Land Challenges
During the meeting, the Tripura government also briefed the Finance Commission on the infrastructure development projects being carried out in the state. The CM highlighted the shortage of plain land, which is essential for setting up large-scale industries and attracting investment.
Due to its geographical constraints, Tripura has limited space for industrial expansion, making financial assistance crucial for the state’s economic development.
Direct Funding for Tripura Tribal Areas Autonomous District Council (TTAADC)
The issue of direct funding to the Tripura Tribal Areas Autonomous District Council (TTAADC) was raised during the discussions. However, CM Saha did not elaborate on the state government’s stance.
Meanwhile, Tipra Motha, a key ally of the BJP-led coalition government, along with the CPI(M) and Congress, met the Finance Commission on Thursday and demanded direct financial assistance for the tribal council.
Tripura Seeks Higher Tax Share and New Financial Criteria
Tripura has also requested the 16th Finance Commission to revise tax-sharing criteria, ensuring that northeastern states receive a greater share of central funds. The state emphasized that geographical challenges, forest coverage, and economic limitations should be key factors in determining fund allocations.
Implementation of the 8th Pay Commission
The Tripura government also discussed the implementation of the 8th Pay Commission with the Finance Commission. The state has been working to improve salary structures and benefits for government employees, aligning them with national standards.
Finance Commission’s Visit to Tripura
Arvind Panagariya, Chairman of the 16th Finance Commission, is on a three-day visit to Tripura. During his visit, he will hold meetings with the state government, political parties, and other stakeholders to assess Tripura’s financial needs and determine fund allocation strategies.
The Tripura government is making a strong case for higher financial assistance from the 16th Finance Commission to tackle its economic challenges, disaster recovery, and development needs. With Rs 15,000 crore in flood-related losses, a high forest cover limiting industrial expansion, and the inability to provide DA at par with central employees, the state requires greater financial support to sustain its progress.
The demand for increasing the special award for dense forest coverage from 10% to 20% aligns with Tripura’s role in environmental conservation, highlighting the need for better incentives for states contributing to climate goals. Additionally, discussions around direct funding for TTAADC and implementation of the 8th Pay Commission show the government’s commitment to addressing the socio-economic disparities within the state.
As the Finance Commission evaluates these requests, the state remains hopeful for a positive outcome that will ensure its long-term economic growth, improved public services, and infrastructure development. With a vision for Viksit Tripura 2047, the government continues to advocate for fairer financial policies that recognize the unique geographical and economic constraints faced by northeastern states.
The final decision on fund allocation will depend on the Finance Commission’s assessment, but the Tripura government’s proactive approach reflects its determination to secure a prosperous future for its people.
