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Finance Commission Recommends Stronger Local Governance

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31/07/2026
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Sixth State Finance Commission Submits Report to Tripura CM, Recommends Measures to Strengthen Local Governance

Agartala, July 31: The Sixth State Finance Commission (SFC) on Friday submitted its report to Tripura Chief Minister Dr. Manik Saha, outlining recommendations aimed at strengthening fiscal decentralization, improving local governance, and enhancing the financial capacity of local self-government institutions across the state.

The report was formally handed over by Commission Chairman Abhishek Singh, accompanied by Member Dr. Pallab Kanti Ghosal and Member Secretary Dr. Akinchan Sarkar, at the Chief Minister’s official residence.

The Sixth State Finance Commission was constituted by the Government of Tripura on January 7, 2025, under the provisions of Articles 243(I) and 243(Y) of the Constitution of India. The Commission was tasked with reviewing the financial position of Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) in the state and recommending measures to strengthen local self-governance.

Apart from assessing the financial status of local bodies, the Commission examined the principles governing the distribution of financial resources from the State Government to various tiers of Rural Local Bodies, Urban Local Bodies, and the Tripura Tribal Areas Autonomous District Council (TTAADC). It also suggested measures to improve their financial sustainability, operational efficiency, and overall governance.

According to official sources, Chief Minister Dr. Manik Saha appreciated the Commission for its extensive consultations with stakeholders, including government departments, elected representatives, local self-government institutions, and experts in the field of local governance. He said the comprehensive approach adopted by the Commission would help formulate policies for stronger grassroots administration.

The Chief Minister assured that the State Government would carefully examine the Commission’s recommendations and take appropriate steps to strengthen the local self-governance system while ensuring balanced and inclusive development across Tripura.

Commission Chairman Abhishek Singh thanked the officials of the Rural Development (Panchayat) Department, Urban Development Department, and Finance Department, along with elected representatives and other stakeholders, for their cooperation and valuable inputs during the Commission’s study.

The report will now be placed before the Tripura Council of Ministers for consideration. Once approved, its recommendations are expected to be implemented by the concerned departments during the 2026-27 to 2030-31 period.

Officials believe the report will serve as a significant milestone in promoting fiscal decentralization, strengthening grassroots institutions, and advancing inclusive and sustainable development across the state.

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