Agartala, Tripura Chief Minister Manik Saha on Sunday said all northeastern states have taken up the withdrawal of the revenue gap fund with Union Finance Minister Nirmala Sitharaman.
Following the recommendation of the 16th Finance Commission, the Centre has withdrawn the revenue gap fund to northeastern states, leading to financial constraints for small states like Tripura. “During a meeting in Shillong, all northeastern states raised the issue with Union Finance Minister Nirmala Sitharaman. “We are committed to filling vacant posts as much as possible if there are no technical problems. Tripura Finance Minister Pranajit Singha Roy had also expressed concern over the withdrawal of the revenue gap fund following the recommendation of the 16th Finance Commission. “During the Finance Commission’s visit to the state, we projected the state’s fiscal burden and commitment to meet expenditures for employees and pensioners.
Due to the withdrawal of the revenue gap fund, the state will suffer a loss of ₹ 4,000 crore per year. Singha Roy said the state will not receive ₹ 4,000 crore annually under the revenue gap fund, which it usually received, due to the implementation of the Finance Commission recommendation, and the loss will be ₹ 20,000 crore in five years.
The Centre has sanctioned a fund titled ‘Pride of Hills’ to bridge the gap, but it is not sufficient,” the chief minister told reporters. The curtailment of the revenue gap fund will not impact the recruitment drive initiated by the state government,” he said. However, the FC’s recommendations emphasised increasing state income and withdrawing the revenue gap fund,” he had told reporters on Thursday.
