State finance is in stable position, Says Finance Commission Chairman during Tripura visit
Chairman of the 16th Finance Commission, Arvind Panagariya, affirmed that Tripura's economy is well-managed, with the state's finances in a stable position.
During a meeting at the Secretariat on Thursday, the Finance Commission held discussions with Tripura Chief Minister Manik Saha. Chief Secretary J.K. Sinha, Finance Secretary Apurba Roy, and senior officials from various departments were also in attendance.
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Addressing the media later, Panagariya highlighted a decline in Tripura’s committed expenditure and debt, calling it a positive development. He also noted that the state’s reliance on agriculture stands at 30-35%, lower than the national average of 45%, indicating a transition towards other sectors.
He also said that urbanization in Tripura is progressing at a rapid pace.
However, the Finance Commission Chairman pointed out areas where the state's economy lags behind national benchmarks.
He observed that Tripura’s per capita income and access to economic and social services remain below the national average, though he acknowledged the government's ongoing efforts to bridge the gap.
During discussions, the state government urged an increase in tax devolution from the current 41per cent to 50 per cent.
Panagariya noted that other northeastern states have made similar demands, seeking a higher share of central tax allocations.
Tripura is the 17th state visited by the Finance Commission as part of its nationwide consultations.
“Out of the eight northeastern states, the Commission is yet to visit Mizoram and Arunachal Pradesh,” Panagariya stated.
He emphasized that while drafting recommendations, the Commission would consider the unique socio-economic and geographical challenges of the northeastern region. He also praised the region’s significant forest cover and acknowledged the higher infrastructure costs due to its hilly terrain.
Regarding Centrally Sponsored Schemes (CSS), Panagariya noted that northeastern states benefit from a 90:10 funding ratio, where the Union government bears 90% of the cost, while other states follow a 60:40 model.
On the second day of its four-day visit, the Finance Commission engaged with various stakeholders, including the Council of Ministers, Panchayati Raj institutions, urban local bodies, the Tripura Tribal Autonomous District Council (TTAADC), political leaders, and representatives from trade, commerce, and industry sectors.
The delegation, including the Chairman, four Commission members, and other officials, also visited key tourist destinations across the Gomati, Sepahijala, and West Tripura districts. (Edited)
(Tripura, Northeast)
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