A Sixteenth Finance Commission-backed study recommends revenue reforms, higher capital expenditure, and increased investment in education and healthcare to strengthen Tripura’s long-term economic growth. The report highlights fiscal sustainability, rural infrastructure development, human capital enhancement, and improved revenue productivity as key priorities for inclusive development.
A comprehensive study conducted under the aegis of the Sixteenth Finance Commission, Government of India, has emphasized the need for strategic fiscal reforms, enhanced capital expenditure, and greater investment in human development sectors to strengthen Tripura’s long-term economic growth. The study was led by Professor Subhrabaran Das of the Department of Economics, along with team members Kiran Bhowmik, Research Associate, and Srija Debnath, Research Assistant.
The report presents a series of constructive recommendations aimed at improving the state’s revenue productivity and public spending efficiency. According to the findings, Tripura should focus more on strengthening its secondary and tertiary sectors, as these sectors possess significant potential to generate higher revenue and accelerate economic diversification.
The study also recommends increasing capital expenditure, particularly in rural infrastructure development. Such investments, the report argues, would not only improve economic productivity but also create a stronger revenue base for the state in the future. While the state’s own tax revenue has shown encouraging buoyancy and elasticity, researchers suggest that additional measures are required to enhance tax responsiveness and broaden the revenue base.
A notable concern highlighted in the report is the comparatively slower growth of non-tax revenue. The researchers have recommended exploring additional sources of non-tax revenue, including rational enhancement of user charges and service fees, while ensuring affordability for citizens.
The study further projects a significant pre-devolution revenue deficit for the period 2026-27 to 2030-31 and recommends careful fiscal planning to address the anticipated gap. It also provides policy suggestions regarding salary, wage, and pension expenditure management in view of future Dearness Allowance commitments.
On public expenditure, the report stresses the importance of allocating a larger share of Gross State Domestic Product (GSDP) to education and health sectors. Although Tripura’s educational spending efficiency compares favourably with the national average, the proportion of expenditure has been declining in recent years. The researchers argue that greater investment in education and healthcare would strengthen human capital and improve long-term development outcomes.
The report also identifies scope for improving technical efficiency in the education sector through enhanced physical infrastructure and better teacher-student ratios.
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Experts believe that the study provides a valuable roadmap for policymakers, offering evidence-based recommendations that can help Tripura achieve stronger fiscal sustainability, improved public service delivery, and inclusive economic growth in the coming years.
