Tripura has been awarded Rs 2.58 billion for being the best state in terms of financial management. According to an official statement of central government, the state government of Tripura has been able to maintain a strict financial discipline among all departments by implementing a fiscal responsibility and budget management (FRBM) system. The central government has also decided to lower the interest rates of central loan from 16 per cent to 7.5 per cent. Out of the total reward, the state has already received Rs 680 million.

 

The evaluations of the states were made as per the guidelines of the 12th Finance Commission. The main responsibility of the 12th Finance Commission was to make recommendations for distribution between the union and the state governments of net proceeds of shareable taxes and other revenues. The commission also consolidates funds of the sates. The Finance Commission had submitted its report to the central government in November 2004. The state of Tripura has been rewarded on the basis of that report of the commission. Reports claimed that the government of Tripura has no revenue deficit since 2000.