Agartala, 24th September 2026 : Tripura has lost financial assistance of around Rs 4,000 crore annually following the discontinuation of the Gap Assistance for States (GAP) fund after the recommendations of the 15th Finance Commission, state Finance Minister Pranajit Singha Roy said on Thursday.
Explaining the financial impact, the minister said the withdrawal of GAP assistance had created a major financial challenge not only for Tripura but also for several other states. “Our state is small and we used to receive around Rs 4,000 crore every year. Over a period of nearly five years, the amount would have been around Rs 20,000 crore. With the discontinuation of the fund, we have lost that annual support of around Rs 4,000 crore,” he said.
According to Singha Roy, the 15th Finance Commission had advised states to increase their own revenue to compensate for the shortfall. However, he said it was not possible to substantially increase state revenue overnight.
“We are trying to bring in industries and exploring other sources of revenue. We have not increased taxes or imposed any additional levy even by a single rupee,” the minister said.
He said the state government had also approached the Centre seeking financial assistance. The minister said he had personally written to the Union Finance Minister, while the Chief Minister had held a detailed meeting with the Prime Minister and placed a report highlighting Tripura’s financial difficulties.
Singha Roy further said that a scheme was subsequently introduced to provide grants to states for development works and other requirements in view of the financial pressure caused by the discontinuation of GAP assistance. Under the scheme, Rs 3,550 crore has been approved for Tripura, he said.
However, the minister clarified that the approved amount should not be considered a complete replacement for the annual Rs 4,000-crore GAP assistance.
He said a portion of the approved funds could be utilised for ongoing state projects. Besides, if some of the state’s matching-share requirements under various centrally sponsored schemes could be met from these funds, it would reduce pressure on the state’s own budget.
Such savings, he said, could also help reduce the burden of debt repayment and allow the state to utilise its own resources in other sectors.
The minister estimated that such utilisation of the Rs 3,550 crore could potentially generate financial relief of up to around Rs 2,000 crore for the state. However, he stressed that this was only a tentative assessment and the actual savings could be lower or higher.
