Tripura wants liberal central assistance for small states

The Left Front government in Tripura wants Prime Minister Narendra Modi-led central government should be generous to provide economic support to small states, a minister said here Wednesday.

"Tripura and other small states have been facing huge debt burden. We sincerely expect that the central government must waive the state's debt to the union government," Tripura's PWD and Health Minister Badal Chowdhury told reporters.

Chowdhury, who represented the Left Front government at the swearing-in ceremony of Modi Monday, said: "Almost all states in the country have been demanding to provide at least 50 percent share of the central taxes, but the centre has been ignoring the demand."

He said the new government must reconstitute the Planning Commission soon and finalise the annual plans of the states.

The annual plans for the 2014-15 fiscal year for states earmarked by the Planning Commission are yet to be finalised due to the Lok Sabha elections spread over April-May.

Generally, during the months of March-April, the plan panel holds discussions with officials and chief ministers of all states to finalise their annual plans.

"Tripura was deprived of financial assistance by the 13th Finance Commission. Hence, the state has been facing serious financial crunch," said Chowdhury, who until last week was the finance minister of Tripura for about 18 years.

The Left Front government in Tripura, led by the Communist Party of India-Marxist, has been demanding a financial package of Rs.13,600 crore from the central government to overcome its severe financial crisis in view of the "erroneous recommendations of the 13th Finance Commission".

Tripura sought around Rs.27,000 crore, but the 13th Finance Commission recommended only about Rs.16,350 crore in 2009. Its report was accepted by the previous Congress-led central government.