16th Finance Commission chief lauds Tripura's financial practices despite lower per capita income

Agartala, Jan 30 (PTI) The chairman of the 16th Finance Commission, Arvind Pangariya, on Thursday praised Tripura government's financial management despite a lower per capita income than the national average.

The visiting Finance Commission team held a detailed discussion on the state's financial goals for five years starting 2026-27 fiscal. Chief Minister Manik Saha, Finance Minister Pranajit Singha Roy and Chief Secretary JK Sinha were present at the meeting.

"The Tripura government has presented a projected overview of its expenditure and revenue collection for a five-year period starting 2026-27 fiscal. It appears that the state's financial position is sound and well-managed, with both debt burden and committed expenditure on the decline," Panagariya said at a press conference.

He emphasised the ongoing efforts by successive Finance Commissions to redistribute revenue to poorer states, particularly those with lower per capita income compared to the national average.

He noted that Tripura had suggested increasing the income distance criteria share from 45 per cent to 50 per cent.

Additionally, Pangariya praised the state for its smooth transition from agricultural dependence to growth in sectors like services and industry.

"Tripura's workforce appears to be less dependent on agriculture, with only 30-31 per cent engaged in the farm sector, compared to the national average of 45 per cent. This shift from agriculture to services and industry is a key indicator of the state's overall growth," he said.

Discussing the proposals by the Tripura government, Pangariya said, "The state has advocated for a 50 per cent vertical share of the divisible pool between states and the Centre." Currently, the vertical share of the divisible pool is divided in a 41:59 ratio between states and the Centre.

Regarding the central pay structure for state government employees, Panagariya noted, "The state has presented its expenditure and revenue collection for the next five years." He further explained, "In the memorandum, the government has mentioned a one-line statement on the expenditure and revenue collection for the next five years. However, the decision of the finance commission remains to be seen." The commission is scheduled to submit its recommendations to President Droupadi Murmu by October 31.

"Handed over a memorandum to the Chairman of 16th Finance Commission Dr Arvind Panagariya outlining key demands for the betterment of the state and its people," the chief minister said in a social media post. PTI PS MNB

Source: PTI