The discontinuation of annual revenue gap funding from the Centre has emerged as a major financial hurdle for the Tripura government in its efforts to reduce the Dearness Allowance (DA) gap between state government employees and their central counterparts, Finance Minister Pranajit Singha Roy said on Monday.
Speaking to reporters on the sidelines of a programme at Pragna Bhavan in Agartala, Roy said Tripura earlier received around Rs 4,000 crore annually from the Centre as revenue gap funding. However, the assistance has now been discontinued, placing additional pressure on the state's finances.
"The state government has a target to reduce the gap in DA between state government employees and central government staffers, but financial constraints remain a major challenge," the minister said.
At present, Tripura government employees receive 41 per cent Dearness Allowance, while central government employees receive 60 per cent, leaving a gap of 19 percentage points.
Roy said the withdrawal of revenue gap funding was not limited to Tripura.
"Not only Tripura, but the revenue gap fund has also been discontinued for all states in the country. The 16th Finance Commission has advised states to increase their own revenue to meet non-plan expenditure," he said.
The Finance Minister also said the BJP-led state government has not imposed any new taxes over the past eight years, keeping in mind the financial burden on the people, while continuing to release DA in a phased and systematic manner.
He added that Chief Minister Dr. Manik Saha has been actively exploring ways to mobilise resources to further enhance DA and reduce the gap with central government employees.
"Chief Minister Dr. Manik Saha has been discussing how to arrange funds to release DA and reduce the gap. We have already taken up the issue with the authorities concerned," Roy said.
Tripura has more than one lakh government employees and pensioners, making any increase in Dearness Allowance a significant financial commitment for the state government.