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Following the recommendation of the 16th Finance Commission, the Centre has withdrawn the revenue gap fund to northeastern states, leading to financial constraints for small states like Tripura.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. Due to the withdrawal of the revenue gap fund, the state will suffer a loss of ₹4,000 crore per year. The Centre has sanctioned a fund titled 'Pride of Hills' to bridge the gap, but it is not sufficient," the chief minister told reporters.
He also cleared doubts about its impact on the ongoing recruitment drive in different government departments.
"We are committed to filling vacant posts as much as possible if there are no technical problems. The curtailment of the revenue gap fund will not impact the recruitment drive initiated by the state government," he said.
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. However, the FC's recommendations emphasised increasing state income and withdrawing the revenue gap fund," he had told reporters on Thursday.
{{/usCountry}}"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. However, the FC's recommendations emphasised increasing state income and withdrawing the revenue gap fund," he had told reporters on Thursday.
{{/usCountry}}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.
He said the chief minister has already taken up the matter with the Centre because a process has already begun to constitute the 8th Pay Commission for revision of pay for the government workforce.
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