Agartala: Tripura is facing an annual revenue gap of around ₹4,000 crore after the Centre discontinued the revenue-gap grant following the recommendations of the 16th Finance Commission. Finance Minister Pranajit Singha Roy said the change has created financial challenges for the state. He said Tripura previously received around ₹4,000 crore every year under the grant. Meanwhile, the Centre has allocated ₹3,450 crore to Tripura under the new “Pride of Hills” scheme. The Finance Minister said the state is exploring new revenue sources without introducing additional taxes.
Read More: Tripura TET Candidates Protest for Recruitment
Key Facts
- State: Tripura
- Location: Agartala
- Finance Minister: Pranajit Singha Roy
- Annual revenue gap: Around ₹4,000 crore
- New central allocation: ₹3,450 crore
- Scheme: Pride of Hills
- Finance Commission: 16th Finance Commission
- Revenue strategy: New income sources without new taxes
- Chief Minister: Manik Saha
Tripura Loses Annual Revenue Support
Finance Minister Pranajit Singha Roy said Tripura previously received around ₹4,000 crore annually through the revenue-gap grant.
He said the withdrawal affects several states. However, the impact remains significant for Tripura because of its relatively small revenue base.
According to the minister, Tripura received the support over several years. The state now needs to find other ways to manage the shortfall.
Government Looks for New Revenue Sources
The Finance Commission has advised states to strengthen their own revenue-generation capacity. Singha Roy said Tripura has started exploring different options to increase its income.
At the same time, he said the government has not proposed new taxes. The state is instead looking at industries and other economic activities to expand its revenue base.
The government has also approached the Centre for support. Singha Roy said he wrote to the Union Finance Minister about the issue.
Chief Minister Manik Saha also discussed the matter with Prime Minister Narendra Modi, according to the Finance Minister.
Tripura Gets ₹3,450 Crore Under New Scheme
The Centre has allocated ₹3,450 crore to Tripura under the Pride of Hills scheme for 2026-27. The scheme provides special development assistance to hill states.
Tripura’s allocation forms part of a larger central programme for hill states. The funds can support development projects and other approved requirements under the scheme’s guidelines.
However, Singha Roy clarified that the ₹3,450 crore allocation does not simply replace the earlier ₹4,000 crore annual grant.
Funds May Reduce Budget Pressure
The Finance Minister said Tripura can use part of the new allocation for ongoing projects and other permitted expenses.
The state could also use some funds for its share of Centrally Sponsored Schemes. This could reduce the amount that Tripura needs to provide from its own budget.
As a result, the government could redirect some savings toward other financial commitments, including loan-interest payments.
Around ₹1,000 Crore Relief Expected
Singha Roy gave a tentative estimate of around ₹1,000 crore in potential financial relief from the ₹3,450 crore allocation.
However, he stressed that the figure was only an illustration. The actual financial benefit could vary depending on how the state uses the funds and the applicable scheme guidelines.
The government therefore sees the arrangement as providing both development funding and some relief to the state budget.
Tripura Explores Industrial Development
The state government is also looking at industrial development to strengthen its own revenue sources.
Singha Roy said Tripura is exploring industries and other economic activities. The government expects such initiatives to expand the state’s income over time.
At the same time, the Finance Minister said the state has not introduced new taxes as part of its current revenue strategy.
What Happened to Tripura’s Revenue Grant?
The Centre discontinued the annual revenue-gap grant following the recommendations of the 16th Finance Commission. Tripura previously received around ₹4,000 crore each year.
How Much Funding Has Tripura Received Under the New Scheme?
Tripura has received ₹3,450 crore under the “Pride of Hills” scheme for 2026-27.
Will the ₹3,450 Crore Fully Replace the Old Grant?
No. The Finance Minister said the new allocation should not be treated as a direct replacement for the earlier ₹4,000 crore annual support.
How Will Tripura Manage the Revenue Gap?
The government plans to explore new revenue sources, including industrial activities. It also plans to use available central assistance within the permitted guidelines.
Is Tripura Planning New Taxes?
According to Finance Minister Pranajit Singha Roy, the government has not proposed new taxes as part of its efforts to increase revenue.
Location Context
Tripura is one of India’s northeastern states and faces the fiscal challenges common to smaller states with limited revenue sources. The state is now combining central assistance, new economic initiatives and revenue-generation measures as it adjusts to changes in central financial support.
Also Read: SIBLAC Raises Sikkim Concerns Over Gorkhaland Draft