Experts suggest DA boost in Tripura Budget to support employees, fiscal stability
As Finance Minister Pranajit Singh Roy prepares to present the state budget for the financial year 2026–27 on March 16, economists and researchers have put forward a series of important recommendations aimed at strengthening the state’s fiscal structure while improving the welfare of government employees. The suggestions were made by a team led by Professor Subhrabaran Das, Head of the Department of Economics at Tripura University, along with research team members Kiran Bhowmik, PhD scholar in the department, and Srijan Debnath, research assistant working under the study of the Sixteenth Finance Commission of India.
One of the key proposals highlighted by the experts is the need to address the gap in Dearness Allowance (DA) between central and state government employees. According to the recommendations, the state government may consider introducing a 30 percent increase in salary and wages during the financial year 2026–27. This step is expected to help bridge the difference in DA benefits and improve the financial security of thousands of government employees and pensioners in the state.
The experts further suggested that after the initial adjustment in 2026–27, an additional annual DA increase of around 7 percent could be introduced from 2027–28 onward for the next three years. Such a measure would gradually align the DA structure of state employees with that of central government employees while maintaining fiscal discipline.
Similarly, the report recommends a 30 percent increase in pension expenditure during 2026–27 to bring pension benefits closer to central government standards. After the initial revision, pensioners may also receive regular DA increases annually. Experts believe that strengthening salary and pension structures will improve purchasing power, stimulate local demand, and contribute positively to the state’s economic activity.
Apart from employee welfare, the recommendations stress the importance of expanding the state’s revenue capacity. Economists suggest that the government should give greater emphasis to the secondary and tertiary sectors. In particular, industries, agro-processing units, and small-scale manufacturing could play a vital role in generating revenue and expanding the state’s tax base.
The team also emphasized increasing capital expenditure for rural infrastructure such as roads, irrigation systems, storage facilities, and rural connectivity. Improved infrastructure would not only support agricultural productivity but also encourage small enterprises and market expansion in rural areas.
Another key observation in the report relates to revenue trends. While the state’s own tax revenue and tax buoyancy are relatively strong, there remains scope to improve tax responsiveness through better compliance systems and administrative efficiency. At the same time, the growth of non-tax revenue is comparatively low, and the government has been advised to explore additional income sources through improved service fees and user charges.
For projecting fiscal trends between 2026–27 and 2030–31, the experts recommend using the Natural Logarithmic Growth Method, which captures both short-term fluctuations and long-term trends. Based on this method, the projected pre-devolution revenue deficit during the five-year period has been estimated at around Rs. 1.72 lakh crore.
Economists believe that if these recommendations are incorporated into the upcoming budget, Tripura could achieve a balanced approach that strengthens fiscal sustainability while improving employee welfare and promoting long-term economic growth.
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