Tripura Faces Rs 4,000 Crore Annual Loss Following Fund Cut

Agartala: Tripura faces a massive financial hit. The withdrawal of the revenue gap fund threatens to drain Rs 4,000 crore from the state budget each year. Over a five-year stretch, this loss could balloon to Rs 20,000 crore. Chief Minister Manik Saha and Finance Minister Pranajit Singha Roy confirmed the grim projections on August 30.

Northeastern states teamed up to confront the issue. They met with Union Finance Minister Nirmala Sitharaman in Shillong to voice their dissent. The problem stems from recommendations made by the 16th Finance Commission. While the Centre launched the Pride of Hills fund to plug the deficit, Saha insists the money does not cover the shortfall.

The state remains under pressure. Tripura must cover mounting costs for government employees and pensioners. These fiscal burdens are hitting just as the 8th Pay Commission begins the process of revising public sector salaries. Despite the shrinking budget, the state claims it will keep hiring. "We are committed to filling vacant posts as much as possible if there are no technical problems," Saha stated. He maintained that the funding gap will not halt current recruitment drives.