Economic reform offers a better financial health to Tripura

Agartala, Jul 6 (UNI) The Centre has relieved the loan of Rs 43 crore to Tripura this year for following a part of economic reform policy and assured to alleviate the debt burden of Rs 250 crore in the next five years, if the state continues to follow the norms.

Talking to UNI here today, Tripura Finance Minister Badal Choudhury said the total debt burden of the state was Rs 4,400 crore and Rs 383 crore had been draining out every year for repaying loan as well as interest, besides repayment of principal amount of Rs 87 crore instalment per annum.

Financial management and economic discipline are the main reasons that helped Tripura reduce the debt burden and strengthen the base of internal revenue of the state, Mr Choudhury claimed, adding that Tripura is one of the few states of the country, which runs with a healthy finance.

Explaining the financial position of the state, Mr Choudhury said that about 60 per cent of the state's plan and non-plan budget were spent for employee's salary, pension, administrative management and loan repayment, while a bigger portion of the rest amount was paid out for development purpose.

Tripura is getting loan from Reserve Bank of India, besides other financial institutions, different ministries of Govt of India and employees General Provident Fund but with the enactment of Financial Liability Act, the state received a tremendous economic boost, which reduced the loan-seeking tendency and enhanced the internal revenue bases.

According to the minister, Tripura Forest Development Corporation and Tripura Industrial Development Corporation had already emerged as profit making Public Sector Undertaking (PSU), that indicated a good sign of financial discipline.

UNI