The Tripura Government has put forward two key criteria to the visiting Sixteenth Central Finance Commission (CFC-XVI) as part of its recommendations for the equitable distribution of financial resources among states. Given the state’s geographical location and strategic significance, the government has proposed the inclusion of an Infrastructure Index and International Border as critical parameters in determining the Horizontal Distribution of revenue.
|Also Read : Tripura Doing Fine, Finance Commission Will Recommend In Line With State’s Challenges : Arvind Panagariya—https://tripuranet.com/tnet/tripura-doing-fine-finance-commission-will-recommend-in-line-with-states-challenges-arvind-panagariya-21995.html |
During an important meeting with the Finance Commission at the State Secretariat on Thursday, Chief Minister Dr. Manik Saha led the Tripura delegation in outlining these recommendations. The state government also urged the Commission to modify the weightages applied in the revenue distribution formula used by the Fifteenth Finance Commission (CFC-XV) to better reflect Tripura’s unique economic and infrastructural needs.
Addressing the media after the meeting, CFC-XVI Chairman Arvind Panagariya acknowledged Tripura’s proposal to introduce an Infrastructure Index with a 5% weightage and International Border with another 5% weightage as additional criteria for revenue allocation.
In addition to these proposals, the Tripura Government recommended significant revisions to the existing weightages applied during the CFC-XV award period, including:
- Reducing the weightage for Population from 15% to 10%.
- Decreasing 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%.
- Lowering the weightage for Demographic Rate from 12.5% to 5%.
Responding to queries regarding Tripura’s financial management, Panagariya expressed confidence in the state’s fiscal health. He commended Tripura’s efficient financial planning and noted that it is a well-managed state. He further observed that the state’s declining dependency on agriculture is a positive indicator of economic growth and diversification.
Following the meeting, Chief Minister Dr. Manik Saha shared his views on the discussions through a social media post, stating: “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.”
