A 12-members team of the 16th Finance Commission visiting Tripura on Thursday attended a high-level meeting with the state government in presence of Chief Minister Dr Manik Saha.

A the high-level delegation of the 16th Finance Commission led by Chairman Dr. Arvind Panagariya and members arrived in the state capital on a three-day visit from Wednesday and on Thursday at Secretariat in Agartala attended the meeting, where Tripura government handed over a memorandum to the chairman of FC, to Dr. Arvind Panagariya demanding 50 percent share of central taxes with other demands.

At the outset, Chief Minister Prof.(Dr.)Manik Saha extended a warm welcome to the Chairman of the 16th Finance Commission, Dr. Arvind Panagariya, and the Commission members, presenting them with Tripura’s traditional ‘rishas’ and flower bouquet.

The other delegates of the Finance Commission included A.N. Jha, Annie George Mathew, Dr. Manoj Panda, Soumyakanti Ghosh . Commission Secretary Ritvik Pandey, Joint Secretary Rahul Jain, Director K Balaji, Joint Director Kumar Vivek, Deputy Director Sandeep Kumar and other officials were present in this meeting on behalf of the Commission.

The meeting also saw the attendance of key figures from the Tripura government including all ministers   and senior state officials, including Chief Secretary J.K. Sinha and Finance Secretary Apoorba Roy, Secretary Abhishek Singh, Kiran Gitte, Brijesh Pandey and Secretary to the CM Dr.P.K Chakraborty and other senior officials of the State administration were also present to discuss the state’s financial needs and proposals.

Later, the 16th Finance Commission addressing a press conference at State Guest House making its recommendations would keep in mind the socio-economic and geographical situations of the Northeastern states, the panel chairman Arvind Panagariya said that like other states, the Northeastern states also demanded to increase the tax devolution from the Centre from the present 41 per cent while the Tripura government has demanded an increase by 50 per cent.

The panel chairman asserted that Tripura's economy is well managed and the state's finances are in a sound position.

 Panagariya said that Tripura is the 17th state in the country and the Commission has already visited and heard the demands and views of the state governments.

He said out of eight northeastern states, the Commission is yet to visit Mizoram and Arunachal Pradesh.

Appreciating the satisfactory forest cover of the Northeastern states, the Finance Commission Chairman said that due to the hilly nature of the region like other mountainous states, higher costs are required in the region for building infrastructure or ferrying goods.

He said for the core Centrally Sponsored Schemes (CSS), the funding pattern for the northeastern states in the ratio of 90:10, where 90 per cent of the total expenditure was borne by the Union government and 10 per cent contributed by the state concerned while for the other states the ratio is 60:40 ratio.

The Commission would make its recommendations based on the population ratio by October this year, the chairman said, adding that as per the 15th Finance Commission the tax devolution ratio was 59 per cent for the Union government and 41 per cent for the 28 states of the country.

Panagariya stated that the state's committed expenditure and debt have been on the decline which is a good sign. He added that the state's dependency on the agriculture sector is 30-35 per cent which is lower as compared to national average. Nationally, 45 per cent of the workforce is dependent on the agriculture sector.

He stated that urbanization is happening in Tripura at a faster rate. The Finance Commission Chairman however said that Tripura's per capita income and economic and social services are lower in comparison to the national average, nonetheless, it is making efforts to catch up with other states in the country.

After the council of ministers, the Commission also held a series of meetings with Panchayat Raj institutions, urban local bodies, representatives of the Tripura Tribal Autonomous District Council (TTAADC), leaders of various political parties, and representatives of trade, commerce, and industry bodies.

Meanwhile, Chief Minister Dr Manik Saha after meeting the Finance Commission, said in a post on the X: “The discussions included key priorities for the state's development, focusing on sustainable growth, infrastructure enhancement, and addressing unique regional challenges. I am confident that this collaboration will pave the way for a brighter future for Tripura.”

The Finance Commission Chairman, four of its members, and other accompanying officials also visited various tourist places like the Gomati, Sepahijala, and West Tripura districts.