By our correspondent
Agartala, January 17, 2019: The State has huge comparative factor advantage and the 15th Finance Commission shares 10-month old Biplab Deb led Government’s vision of making Tripura a model State. The 15th Finance Commission recognizes that new initiatives of the State Government will act as a multiplier to the growth of the State and bring about qualitative change in the State. The Chairman of 15th Finance Commission Nand Kishore Singh said this while addressing a press meet today in Agartala.
- Growth Trajectory of the State is positive
- Higher public outlay to affect debt and fiscal deficit profile
- Private Capital will be decisive game changer
Tripura is the 17th State of India that the Finance Commission visiting. An official of the finance Department of Tripura said that the state government has demanded at least 50 per cent share in net taxes from the existing 42 per cent. The commission members and officials on Thursday visited a giant 726 MW capacity power plant, set up by the Oil and Natural Gas Corporation sponsored company – ONGC Tripura Power Company – at Palatana in southern Tripura.
Speaking to media, Singh praised the growth trajectory of the State as well as outlined the steps required for medium to Long-term macro economic growth.
He said, “Growth Trajectory of the State is positive, gap between National per capita income and per capita Income of the State is narrowing. The State is performing well in Human Development indices – although a lot more needs to be done.”
Talking about mounting Revenue expenditure, Singh said, Revenue expenditure in the State increased recently due to implementation of the 7th CPC recommendations. He suggested improving the composition of expenditure by giving emphasis on Capital expenditure instead of Revenue Expenditure – the State Government needs to pursue this strategy both, for improving beneficial multiplier effect and Long-term macro stability. “The State Government has credible plan to reduce Revenue deficit and fiscal deficit”, he asserted.
Hailing the State Government’s new initiatives, NK Singh said, “The initiatives to harness Private Capital in addition to public outlay are important steps and the step deserves our encouragement.”
He further said, merely relying on higher public outlay would stretch the debt profile and fiscal deficit profile of the state. In such a situation, Private Capital will be decisive game changer which will make decisive differences in the economy of Tripura and other NE States.
“The Finance Commission supports initiatives which will harness Private Capital along with Public Outlay”, Singh said.
Showering praises on role of the State Government for taking new initiatives for harnessing own revenue, Singh asserted that the Finance Commission will have a sympathetic view on the needs and challenges of the State. He said, there are potentiality in tourism, agriculture and other sectors.
“With proper utilization of the talents of the human resources, qualitative changes could be done. Bamboo, forest resources and diverse industrial potentiality could be harnessed properly. We would give a careful look to the state government’s demands, aspiration and vision,” he added.
Speaking on sectoral importance in details, Singh said, the State Government has a Human Resource Development plan and it is important to stress on harnessing Human Resources of the State for Long term benefits. Talking about the Health sector, he praised State Government’s innovative idea of setting up institutions which would cater medical needs of the neighbouring Bangladesh people. He acknowledged that Health sector in the State has huge potentiality and opportunities.
He also hailed State Government’s innovative IT Hub for the development of Bio-Technology and “being able to harness agricultural production”. He also focused on downstream of Rubber and gas plants for attracting private investments and enhance private-public co-operation.
Accompanied by two other members of the commission — Ashok Lahiri (former chief economic adviser) and Anoop Singh, — the Chairman NK Singh concluded after asserting that visiting Finance Panel is sanguine that new leadership in the State would guide the State to realize it’s objective of becoming a model State.