The Left Front government in Tripura, facing severe financial crisis, will collect Rs 100 crore by selling Tripura State Government Stock (Securities) - 2011, official sources said.
The government stock will be sold through Reserve Bank of India (RBI) and the payment will be repaid in May 2021, Mr Manoj Kumar, Principal Secretary, Finance said.
“The cut-off yield determined at the auction will be coupon rate per annum on the stock at the auction while the rate of interest will be paid every half yearly on November 11 and May 11”, the notification said.
The money will be used for financing development programme and projects to be implemented in the state, according to a notification issued here on Thursday.
The move has been initiated as the state’s fiscal condition became fragile after the implementation of the 13th Finance Commission.
The sources said the Finance department is finding it difficult to release salary bills for the state government employees due to the financial constraint.
While the state government had sought an outlay of Rs 27,848 crore for meeting non-plan expenditure for the next five years, the 13th Finance Commission fixed its allocation at Rs 16,349 crore.
Sources said that the Finance Commission had wrongly calculated the state’s non-plan expenditure resulting in wide gap between allocation and actual requirement.