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The Debt Situation In Tripura Is ₹26,446 Crores In 2023

  • By Thetripurapost Desk, Agartala
  • Dec 27, 2024
  • 435

The debt situation in Tripura, as revealed in the NEC Year Book-2024, is indeed a cause for concern. With the cumulative debt burden increasing from ₹11,851 crores in 2017 to ₹26,446 crores in 2023, the state faces significant financial challenges. The debt now constitutes 34.8% of the state's GSDP, a troubling figure that indicates unsustainable borrowing levels.

Key Issues Highlighted:

1. Debt Growth under the Current Government: The debt burden has more than doubled since 2017, surpassing the borrowing levels of the previous 25-year Left Front government. This rapid growth signals potential mismanagement or over-reliance on borrowing.

2. Dependence on Central Grants: With only 11-12% of Tripura's budget coming from its own revenue sources, the state is heavily reliant on central funds. However, the growing gap between central receipts and the state's expenditure needs is exacerbating the debt issue.

3. Circular on Fixed-Pay Employees: The state's financial struggles are reflected in its recent circular, which delays granting regular pay scales to fixed-pay employees and teachers, affecting livelihoods and morale.

4. Political and Economic Balancing Act: Officials acknowledge the need for strict fiscal discipline but note that implementing harsh economic measures may not be politically feasible, especially in a state where financial challenges are intertwined with social and political considerations.

5. Debt per Capita: The symbolic representation of debt as *₹65,000 per newborn child underscores the gravity of the situation and its implications for future generations.

Broader Context:


Tripura's situation is part of a larger trend of rising indebtedness among Indian states, as noted by the Reserve Bank of India (RBI). States like West Bengal, Punjab, and Maharashtra also face similar challenges, indicating systemic issues in state-level fiscal management.

Possible Solutions:

1. Enhanced Revenue Generation: Focus on strengthening the state's revenue streams, such as better tax compliance, exploiting natural resources sustainably, and promoting industries that can boost the local economy.

2. Expenditure Rationalization: Reduce non-essential spending and prioritize investments that yield long-term economic benefits.

3. Effective Use of Central Grants: Optimize the use of central funds and align projects with the state's economic priorities.

4. Transparent Communication: Build public trust by openly discussing the state's financial challenges and engaging stakeholders in creating sustainable solutions.

5. Debt Restructuring: Explore ways to restructure existing debt to reduce the financial burden and create more breathing space for economic reforms.

While the situation is challenging, a combination of fiscal prudence, innovative revenue measures, and efficient governance can help Tripura navigate this crisis.