Tripura’s fiscal health strengthens as the NITI Aayog Fiscal Health Index highlights improved debt-to-GSDP ratio, lower fiscal deficit, and rising revenue receipts in 2023-24, placing the state among performer states with stable financial management and expanding development expenditure.
The northeastern state of Tripura has earned recognition as a “performer state” in fiscal management after significant improvements in its financial indicators, according to the latest Fiscal Health Index released by the policy think tank NITI Aayog. The report highlights notable progress in the state’s debt sustainability, fiscal deficit control, and revenue growth during the financial year 2023–24.
The Fiscal Health Index evaluates the financial management of Indian states by assessing parameters such as debt sustainability, revenue mobilization, expenditure quality, and fiscal discipline. In its latest findings, Tripura has demonstrated a steady improvement in fiscal stability, strengthening its financial outlook while maintaining development spending.
Debt-to-GSDP Ratio Shows Improvement
One of the most significant improvements recorded in the report is the decline in the state’s debt-to-Gross State Domestic Product (GSDP) ratio. Although Tripura’s total liabilities increased in absolute terms, the proportion of liabilities relative to the state’s economic output decreased steadily.
According to the report, total liabilities rose from Rs 17,846 crore in 2019-20 to Rs 22,507 crore in 2023-24. However, when measured against the state’s GSDP, the liabilities ratio dropped from 32 percent in 2019-20 to 27 percent in 2023-24, reflecting better debt sustainability.
The state has also reduced the burden of interest payments. Interest payments accounted for 6 percent of revenue receipts in 2023-24, compared with a higher range of 8 to 10 percent between 2019-20 and 2022-23, indicating improved fiscal efficiency.
Revenue Receipts Register Strong Growth
Tripura’s total revenue receipts recorded robust growth during the financial year 2023-24. The state reported Rs 20,538 crore in revenue receipts, reflecting a 12 percent increase compared with the previous financial year.
The revenue structure shows that tax revenue contributed around 55 percent of the total revenue receipts, while grants-in-aid accounted for 43 percent and non-tax revenue made up about 2 percent.
The report also noted improvements in all major revenue categories. Total tax revenue, including the share of Union taxes, increased by 9.57 percent, while non-tax revenue rose by 4.73 percent. Grants-in-aid from the central government also increased by 7.94 percent compared with the previous year.
Within the tax revenue structure, taxes on income and expenditure contributed the largest share at 46 percent, followed by Goods and Services Tax (GST) at 36 percent. The state’s own tax collection accounted for 29 percent of the total tax revenue, while 71 percent came from the share of Union taxes.
Fiscal Deficit Narrowed Significantly
Tripura has also succeeded in sharply reducing its fiscal deficit. The report revealed that the fiscal deficit declined from Rs 1,513 crore to Rs 638 crore, bringing the fiscal deficit-to-GSDP ratio down from 2.14 percent to 0.8 percent in 2023-24.
This level remains comfortably within the Fiscal Responsibility and Budget Management (FRBM) limit of 3 percent, demonstrating adherence to fiscal discipline.
At the same time, the state’s revenue account surplus expanded considerably. The surplus increased from Rs 570 crore in 2022-23 to Rs 2,196 crore in 2023-24, marking the third consecutive year of revenue surplus.
Capital Expenditure Sees Significant Increase
The report also highlighted strong growth in development-oriented spending. Capital expenditure grew by 35 percent in 2023-24, largely driven by higher allocations toward social services and economic services, which together accounted for nearly 90 percent of the total capital expenditure.
Committed expenditure—including salaries, pensions, and interest payments—rose by 19 percent between 2019-20 and 2023-24. However, its share in revenue expenditure declined from 68 percent to 59 percent, suggesting improved fiscal flexibility for development projects.
Overall revenue expenditure grew by 37 percent between 2019-20 and 2023-24, enabling the government to expand development initiatives. Under revenue expenditure, general services grew by 8 percent, economic services by 1.6 percent, while social services saw a marginal decline of 1.5 percent compared with the previous year.
Concerns Over Unspent Funds
Despite the positive trends, the report pointed out certain financial management concerns. A substantial amount of funds remained unspent in Drawing and Disbursing Officer (DDO) accounts.
As of March 31, 2024, unspent funds worth Rs 550.14 crore were parked in DDO bank accounts. Additionally, 2,867 utilisation certificates worth Rs 960.87 crore were pending, which the report said affected expenditure credibility and the timeliness of financial reporting.
Stable Fiscal Outlook for Tripura
Overall, the policy body concluded that Tripura’s fiscal position remains stable and consolidated, although the state continues to face structural constraints such as a narrow own-revenue base and reliance on central transfers.
In the performance categorisation of the Fiscal Health Index, Tripura was placed in the “performer” category alongside northeastern and Himalayan states such as Assam, Meghalaya, Mizoram, and Sikkim.
The report also noted that Arunachal Pradesh leads the region with strong expenditure quality and prudent debt management, while Uttarakhand benefits from strong own-revenue mobilisation.
However, Tripura stood out for its debt sustainability and fiscal discipline, reflecting steady financial governance while expanding development spending for social and economic services.
| Also Read: Tripura Emerges Strong Performer in NITI Aayog Fiscal Health Index |
With fiscal deficit under control and revenue surplus rising, the state appears to be moving toward stronger financial stability, providing a supportive foundation for long-term economic development and public welfare initiatives.
