Agartala: Tripura’s fiscal position remained broadly stable in the financial year 2023–24, with the state maintaining a revenue surplus and keeping its fiscal deficit well within the prescribed limits, the 2026 edition of the Fiscal Health Index released by NITI Aayog says.
The report said the state’s revenue receipts stood at Rs 20,538 crore in 2023–24, registering a growth of 12 per cent compared to the previous financial year.
Of the total revenue receipts, tax revenue accounted for about 55 per cent, grants-in-aid from the Centre constituted 43 per cent and non-tax revenue contributed around 2 per cent.
Total tax revenue, including the state’s share of Union taxes, increased by 9.57 per cent over 2022–23, while non-tax revenue rose by 4.73 per cent and grants-in-aid grew by 7.94 per cent, the report said.
Within the tax revenue component, taxes on income and expenditure contributed the largest share at 46 per cent, followed by Goods and Services Tax (GST) at 36 per cent.
The state’s own tax collection accounted for 29 per cent of the overall tax revenue, while the share of Union taxes constituted 71 per cent during 2023–24.
The fiscal deficit narrowed significantly to Rs 638 crore in 2023–24, equivalent to 0.8 per cent of the Gross State Domestic Product (GSDP), compared with Rs 1,513 crore or 2.14 per cent of GSDP in 2022–23. The deficit remained well within the Fiscal Responsibility and Budget Management (FRBM) limit of 3 per cent.
The report said the revenue account has remained in surplus for the past three years, with the surplus rising from Rs 570 crore in 2022–23 to Rs 2,196 crore in 2023–24.
Tripura’s total liabilities increased from Rs 17,846 crore in 2019–20 to Rs 22,507 crore in 2023–24. However, as a percentage of GSDP, liabilities declined steadily from 32 per cent to 27 per cent during the same period.
Interest payments accounted for about 6 per cent of revenue receipts in 2023–24, an improvement compared to the 8–10 per cent range recorded between 2019–20 and 2022–23.
Revenue expenditure registered a growth of 37 per cent between 2019–20 and 2023–24, which the report said provided the government with greater flexibility for development spending.
Under revenue expenditure, spending on general services increased by 8 per cent, while economic services grew by 1.6 per cent. Expenditure on social services recorded a marginal decline of 1.5 per cent over the previous year.
Capital expenditure increased by 35 per cent in 2023–24 compared to the previous year, mainly due to higher allocations for social and economic services, which together accounted for nearly 90 per cent of total capital expenditure.
Committed expenditure, including salaries, pensions and interest payments, increased by 19 per cent between 2019–20 and 2023–24. However, its share in revenue expenditure declined from 68 per cent to 59 per cent during the period.
The report also highlighted issues related to expenditure management and financial reporting.
It noted that unspent funds amounting to Rs 1,550.14 crore remained parked in Drawing and Disbursing Officer (DDO) bank accounts as of March 31, 2024. In addition, 2,867 utilisation certificates amounting to Rs 960.87 crore were pending, which the report said could affect expenditure credibility and the timeliness of financial reporting.
According to the assessment, Tripura’s fiscal stance remains stable but structurally constrained due to a narrow own-revenue base and a high dependence on central transfers.
While the state recorded a revenue surplus and maintained the fiscal deficit within FRBM limits, a significant share of receipts continued to come from grants-in-aid and the state’s share of Union taxes, with non-tax revenue remaining limited.
The report said that although indicators such as a declining debt-to-GSDP ratio and reduced interest burden reflect improvement, issues such as unspent funds parked in DDO accounts and pending utilisation certificates may affect the effectiveness of public expenditure, particularly in capital spending.
Among the NE and Himalayan states, Tripura has been ranked as performer category along with Assam, Meghalaya, Sikkim and Mizoram. Arunachal Pradesh and Uttarakhand had been recognised as achievers and
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Himachal Pradesh, Manipur and Nagaland had been categorised as aspirational states.
The report noted that Tripura performed well on debt sustainability.
“Assam, Tripura and Uttarakhand maintain moderate debt burdens, whereas Manipur and Himachal Pradesh carry high debt levels of roughly 40–50% of GSDP with rising servicing pressures,” the report says.
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