Tripura Faces ₹4,000-Crore Loss as Revenue Gap Fund Cut Sparks Northeast Alarm

The central government announced a cut to the revenue gap fund, a key source of fiscal support for states. The decision has triggered concern across the Northeast, where many states rely on the fund to meet budgetary gaps. Tripura, in particular, is projected to suffer an annual loss of ₹4,000 crore due to the reduced allocation. Analysts say the cut could force states to tighten spending or seek alternative revenue sources. The government has not yet outlined a replacement mechanism, leaving states to adjust budgets.