Tripura Well-Managed State with Low Agricultural Labour Dependency: Panagariya

Agartala, Jan 30, 2025, By Our Correspondent

Tripura, despite being an agrarian state, has effectively managed its resources due to lower dependency on labour in the agricultural sector, stated Arvind Panagariya, Chairman of the Sixteenth Finance Commission.While addressing a conference at the State Guest House of the Government of Tripura on Thursday, Panagariya emphasized the distribution criteria under the Fifteenth Finance Commission. The weight distribution in percentage across various categories includes Population (15%), Area (15%), Forest & Ecology (10%), Income Distance (40%), Tax & Fiscal Efforts (2.50%), and Demographic Performance (12.50%).Tripura, along with other northeastern states, is significantly covered with forest land. The state government has highlighted this aspect in its report submitted to the finance commission, advocating for increased financial support.The Government has appointed several key members to the Sixteenth Finance Commission, including Ajay Narayan Jha (former member of the 15th Finance Commission and former Secretary, Expenditure), Annie George Mathew (former Special Secretary, Expenditure), Dr. Niranjan Rajadhyaksha (Executive Director, Artha Global), and Dr. Soumya Kanti Ghosh (Group Chief Economic Advisor, State Bank of India). Their visit to Tripura aimed at discussions with stakeholders regarding financial planning and resource distribution.The Sixteenth Finance Commission has been requested to by October 31, 2025, covering a five-year period starting from April 1, 2026.On the issue of disaster mitigation, Panagariya acknowledged that Tripura had experienced flooding a few months ago. However, he pointed out challenges in obtaining accurate data on disaster-related incidents. He suggested that an agreement could be reached on maintaining comprehensive disaster data to facilitate better preparedness. He also commended the state government for efficiently managing the recent flood disaster.The discussions held during the visit are expected to contribute significantly to Tripura’s financial planning and resource allocation, ensuring sustainable growth and development for the state