Photo Courtesy: India Today Group
Agartala: Tripura Chief Minister Manik Saha has formally requested that the Union government remove the existing ceiling on Externally Aided Projects (EAPs) for states in the Northeast. During a seminar in Shillong attended by Union Finance Minister Nirmala Sitharaman, Saha argued that greater access to these funds is essential for accelerating regional economic growth and infrastructure development.
Saha highlighted that Tripura has successfully utilized partnerships with international agencies such as the World Bank, the Asian Development Bank, the Japan International Cooperation Agency, and the Indo-German Development Cooperation over the last twenty years. The Chief Minister stated that these collaborations have supported diverse sectors while strengthening the administrative and institutional capacity of the state.
Addressing the current fiscal environment, Saha pointed to the rapid expansion of the state economy. Tripura saw its Gross State Domestic Product rise from Rs 55,984 crore in 2019-20 to Rs 1,00,795 crore in 2025-26. He noted that annual capital expenditure surged from Rs 2,079 crore to Rs 10,478 crore during the same period, signaling a robust ability to absorb development funds.
The Chief Minister explained that the actual financial burden on the state is often higher than the standard 80:20 Centre-State sharing pattern due to costs related to land acquisition, forest land diversion, and utility shifting. He argued that removing the cap imposed in 2023-24 would allow borrowing limits to be determined by a state's specific administrative and absorption capacity. He concluded by saying, "Such a move would be in line with the objectives of the Centre's Act East Policy and would help northeastern states accelerate infrastructure creation and economic development."
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