Tripura seeks funds from 15th Finance Panel

Agartala: The Tripura government has sought pre-devolution revenue deficit of Rs 1,07,714.83 Cr from 15th Finance Commission for the period of 2020-21 to 2024-25 financial years besides separate funds of over Rs 4900 Cr for disaster management and Rs 17000 Cr for sector specific projects.
Law Minister Ratan Lal Nath on Saturday said that with the approval of the council of ministers the memorandum has been sent to the 15th Finance Commission, which has not yet finalised the schedule of visiting the state.
The state demanded to increase the share of states in the divisible pool of central taxes from 42 per cent to 50 per cent to as compensation for the losses as the central cesses and surcharges were kept out the divisive pool.
“At least 10 per cent of the divisible pool of central taxes needs to be earmarked for northeastern states and compensation provision to make good the GST revenue losses incurred by the states beyond 5 years is badly needed. We have also requested the commission to assess the liabilities of the states in terms of salary and pension prior to devolution by 15th FC and continue 100 per cent funding in northeastern states in centrally sponsored schemes,” the memorandum urged.
The state government has also demanded the commission to earmark at least 5 percent of divisible pool for local self bodies and separate provision of funding for Tripura Tribal Areas Autonomous District Council (ADC) area development.
The state however, requested the 15th FC to decide the horizontal sharing of taxes in advance for Tripura out of the total tax pool, so that the state government can plan accordingly.
“Even after vertical sharing of the 42 per cent of the taxes with the states by the 15th FC, Tripura had got only 0.64 per cent of the total share. But if 15th FC increases the vertical tax share to 50 per cent with states, and in case of Tripura the volume of money is increased to 1.5 percent of the total amount of tax devolution, the chronic under-evelopment of the state would be ended by 2024-25,” Nath stated.
He stated that the government has projected the expenditure between 2020-21 and 2024-25 would be Rs 1,22,214.89 Cr and the revenue collection by the state from own sources would not be more than Rs 14,500 Cr.
Hence, the state has placed its demand for Rs1,07,714.83 with the 15th FC apart from grants for state specific project based allocations, separate funding for disaster management, ADC and local self government.
“The 14th FC has not recommended state specific and sector specific grants for Tripura, which has seriously affected infrastructure and provision of comparable service to the citizens.Tripura has also received lower devolution of central tax compared to other states of Northeast. As a result, 15th FC is requested not to repeat the same,” Nath added. (UNI)