The opposition ruled States such as Tripura and Mizoram which are governed by Left and Congress, respectively, have been facing fund crisis lately. The State government declared that it was completely unsure whether they would meet the proposed obligation or not and as of 7th Pay Commission which cited notifications, it upheld the verdict of implementing recommendations thus Centre, led by Bharatiya Janata Party (BJP) might play hostile when providing funds to the regions.
The State Government of Tripura and Mizoram requires an additional amount of Rs. 2,500 crores as well as Rs. 563 crores, individually on an annual basis. It further stated that the State is not in denial of implementing the recommendation adhered by the Union Cabinet in terms of 7th Pay Commission but factually, it is facing severe financial crisis and henceforth demanding support.
The government of CPI(M)-led Tripura and Congress-led Mizoram confessed that the Central government had withdrawn the fund processing long back due to which it had to face a loss of approximately thousand of crores. Also, they had stopped providing much aid for the development of remote areas apart from funding digitalisation in the region. The Centre twisted the sharing pattern regarding the central sponsored scheme. In fact, the government have been facing huge loss since 2015.
Apart from blocking aid under Central-Sponsored Scheme, the Centre has also stopped funding normal schemes such as Central Assistance, Special Plan Assistance as well as Special Central Assistance. Besides this, it had reduced total package funding by Rs. 314.72 crores during the budget year of 2015-16 and since then providing limited financial resources to Tripura and Mizoram.
In the recently declared 7th Pay Commission the funding for government employees’ payments in the State was lesser than the actual amount. One of the sources reportedly stated as Cabinet had provided 500 crores INR less than the sum amount. Also, to keep until further notice, the State government presumes as the Union government plans to provide almost 1,100 crores INR lesser than the favourable fund, despite all the obligations.
Honourable Finance Minister of Tripura, Bhanulal Saha stated as the government is all set to move to Supreme Court thus challenging the decision of Tripura High Court which gave a verdict of paying all the pending 42% dearness allowance (DA) to more than 2,00,000 state government employees along with the pensioners.
Recently, the State released 4% of the Dearness Allowance on mid of July which has increased to 83% of the state government employees and 125% of the central government employees and its pensioners.