Tripura News Briefcase

Tripura Govt Proposes New Revenue Sharing Criteria to CFC-XVI, Seeks Changes in Distribution Formula

• By ENEWSTIME Desk, Agartala
• Jan 30, 2025
• 130

The Tripura Government has put forward two significant criteria of its own to the visiting Sixteenth Central Finance Commission (CFC-XVI) regarding the distribution of revenue among states.

Considering the geographic location of Tripura, the State Government suggested to introduce Infra Index and International Border as two criteria in calculating the Horizontal Distribution of resources.   

During a meeting with the Commission at the Secretariat on Thursday, the State Government, led by Chief Minister Dr. Manik Saha, also proposed modifications to the weightages used by the Fifteenth Finance Commission (CFC-XV) revenue distribution among the States.

Addressing the media after the meeting, the Chairman of CFC-XVI Arvind Panagariya said the Tripura Government suggested incorporating the Infrastructure Index  with 5% weightage and International Border with 5% weightage as additional criteria in revenue distribution.

Besides, the Tripura Government suggested revisions to the existing weightages used during the CFC-XV award period. The key proposals include:

• Reducing the weightage for Population from 15% to 10%
• Cutting the weightage for Area from 15% to 5%
• Increasing the weightage for Forest & Ecology from 10% to 20%
• Raising the weightage for Income Distance from 45% to 50%
• Reducing the weightage for Demographic Rate from 12.5% to 5%.

Replying to a query, Arvind Panagariya expressed optimism regarding the financial management of the State.

Sharing his personal view, the Chairman said, Tripura is a well managed State. Falling dependency on Agriculture is another indicator of growth, he opined.

Later commenting on the meeting with the 16th Finance Commission Dr Manik Saha wrote in a social media post, "The discussions included key priorities for the state's development, focusing on sustainable growth, infrastructure enhancement, and addressing unique regional challenges. I am confident that this collaboration will pave the way for a brighter future for Tripura".

(Tripura, Northeast)