Tripura finances ‘still stable’ despite Rs 4,000 crore gap funding cut: Finance Minister

Tripura Finance Minister Pranajit Singha Roy on September 23 said the state’s financial condition remained “stable” despite a Rs 4,000 crore reduction in gap funding following the recommendations of the 16th Finance Commission.

Roy said Tripura’s annual budget had grown significantly over the years, from below Rs 15,000 crore in the 2017-18 financial year to over Rs 34,000 crore in 2026-27.

“Despite curtailment of Rs 4,000 crore as gap funding following the recommendation of the 16th Finance Commission, the Centre has allocated Rs 3,450 crore under a new scheme titled ‘Pride of Hills’. We are exploring different avenues to manage the situation,” he said at a press conference.

The minister acknowledged that the reduction in gap funding was a major setback for states such as Tripura but said government spending and development activities were continuing across the state.

Roy said capital expenditure had also increased substantially, rising from around Rs 2,500 crore to Rs 7,000 crore in 2026-27.

“The state’s budget, which was below Rs 15,000 crore till 2017-18 FY, has increased to over Rs 34,000 crore during 2026-27 FY. Besides, capital expenditure has also gone up from Rs 2,500 crore to Rs 7,000 crore during 2026-27 FY. It shows the fiscal condition is still stable in the state,” he said.

On borrowings, Roy strongly advocated long-term loans, saying the state’s debt burden had increased as the government opted for long-term borrowing on favourable terms to accelerate development activities.

Pay commission likely after Durga Puja

The minister also said the formation of a pay commission to revise the pay structure of government employees and pensioners was under active consideration.

The commission is likely to be constituted after Durga Puja, Roy said.

Meanwhile, the Tripura government announced a festival grant of Rs 2,400 each for Group C, Group D and other contractual employees on the occasion of Durga Puja.

The grant will cover around 1.48 lakh employees, excluding Group A and Group B personnel, as well as 85,916 pensioners.

According to Roy, the total financial liability for the festival grant will be Rs 47.16 crore.