Agartala: The Tripura government has urged the 16th Finance Commission to revise revenue distribution criteria by incorporating an Infrastructure Index and International Border factor, each with a 5% weightage, additionally, the state has requested an increase in its tax share from 42% to 50%.
Addressing a press conference, Chairman of the 16th Finance Commission (CFC-XVI) Arvind Panagariya stated that Tripura is the 17th state the commission has visited. He noted that discussions were held with Chief Minister Dr. Manik Saha, Finance Minister Pranajit Singha Roy, and other state officials.
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The commission, which will submit its report to the President by October 31, 2025, has also reviewed recommendations from previous finance commissions.
The 15th Finance Commission’s award period runs from 2021 to 2026, extended to six years due to COVID-19. During discussions, Tripura proposed adjustments to the existing weightages used in revenue distribution.
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The state suggested reducing the Population weightage from 15% to 10%, the Area weightage from 15% to 5%, and the Demographic Rate from 12.5% to 5%. Meanwhile, it proposed increasing the Forest & Ecology weightage from 10% to 20% and raising the Income Distance factor from 45% to 50%.
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Panagariya further mentioned that most states the commission has visited, barring one or two, have sought an increase in their tax share to 50%, with some requesting 45%.
Tripura, like many others, has strongly advocated for a 50% state share in the upcoming finance commission recommendations.