Tripura Sixth State Finance Commission Submits Report to Chief Minister, Recommendations Aim to Strengthen Local Governance and Balanced Development

By Our Correspondent

Agartala, July 31, 2026

The Sixth State Finance Commission (SFC) of Tripura on Friday submitted its long-awaited report to Chief Minister Prof. (Dr.) Manik Saha, marking the completion of nearly one and a half years of extensive research, consultations, and field-level assessments on strengthening fiscal decentralisation and local self-governance in the state.

The report was formally handed over by the Chairman of the Commission, Shri Abhishek Singh, IAS, accompanied by Dr. Akinchan Sarkar, IAS, Member Secretary and Additional Secretary of the Finance Department.

According to highly placed sources, the Commission has recommended a fresh formula for sharing the State's own tax revenue among Panchayati Raj Institutions (PRIs), Urban Local Bodies (ULBs), and the Tripura Tribal Areas Autonomous District Council (TTAADC) for the five-year period from 2026-27 to 2030-31. It is learnt that the Commission has placed special emphasis on ensuring a larger share of financial resources for the state's most backward districts and subdivisions, where a significant proportion of the rural and urban poor reside, with the objective of promoting balanced and inclusive development.

The Sixth State Finance Commission was constituted by the Government of Tripura on January 7, 2025, under Articles 243(I) and 243(Y) of the Constitution of India. The two-member Commission was chaired by Shri Abhishek Singh, IAS, with Prof. (Retd.) Pallab Kanti Ghoshal serving as Member, while Dr. Akinchan Sarkar, IAS, served as the Member Secretary.

The Commission was entrusted with reviewing the financial position of Panchayati Raj Institutions and Urban Local Bodies across Tripura. Its mandate also included recommending principles governing the distribution of financial resources from the State Government to different tiers of rural local bodies, ULBs and the TTAADC, identifying measures to strengthen grassroots governance, and suggesting ways to improve the financial capacity and operational efficiency of local institutions.

Chief Minister Prof. (Dr.) Manik Saha appreciated the Commission's efforts in preparing the report through extensive consultations with government departments, local self-government institutions, elected representatives and subject experts. He stated that the State Government would carefully examine the recommendations and take appropriate steps to further strengthen local self-governance while ensuring balanced development across Tripura.

Speaking on the occasion, Commission Chairman Abhishek Singh expressed gratitude to the officials of the Rural Development (Panchayat) Department, Urban Development Department, Finance Department, elected representatives and other stakeholders for their valuable cooperation, constructive suggestions and support throughout the Commission's study.

Officials believe the submission of the Sixth State Finance Commission's report represents a significant milestone in Tripura's journey towards greater fiscal decentralisation. Once implemented, the recommendations are expected to improve the financial sustainability of local bodies and enhance the delivery of public services at the grassroots level.

It is learnt that the report will now be placed before the Council of Ministers for consideration. Following Cabinet approval, the recommendations will be implemented by the concerned departments during the award period from 2026-27 to 2030-31.

However, despite widespread interest in the report, the Commission has not disclosed the detailed recommendations or the proposed percentage of revenue-sharing with the media. Officials clarified that the contents of the report will remain confidential until they are examined and approved by the State Cabinet. Only after the Cabinet takes a final decision will the recommendations be placed in the public domain.

The report is expected to shape Tripura's fiscal framework for local self-government over the next five years and play a crucial role in strengthening Panchayats, Urban Local Bodies and the TTAADC through a more equitable and need-based distribution of State financial resources.

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