NE states have taken up withdrawal of revenue gap fund with Union FM: Tripura CM

Tripura Chief Minister Manik Saha informed reporters on Sunday that all northeastern states have approached Union Finance Minister Nirmala Sitharaman regarding the withdrawal of the revenue gap fund, as recommended by the 16th Finance Commission. The departure of this funding has left small states like Tripura in financial difficulty, with the loss of ₹4,000 crore annually.

The Union has established a new fund called Pride of Hills, but it does not suffice to cover the gap. Saha addressed concerns about potential impacts on government recruitment, asserting that the state remains committed to filling vacant positions, barring any technical issues. Tripura Finance Minister Pranajit Singha Roy shared his apprehensions about the withdrawal following the commission's visit to the state.

The Commission highlighted the need for states to enhance their income sources and suggested the removal of the revenue gap fund. Consequently, Tripura will not receive the usual ₹4,000 crore annually from the fund; instead, it will suffer a loss of ₹20,000 crore over five years. The Chief Minister has already initiated discussions with the Centre about the commencement of the 8th Pay Commission to address government employees' salary revisions.