Sikkim charts development path with Rs 16,196 cr budget; Rs 2651 cr borrowing planned

Gangtok, March 27: Sikkim Chief Minister Prem Singh Tamang on Wednesday presented the state’s annual Budget for the 2025-26 fiscal in the State Assembly, outlining a total expenditure of Rs 16,196 crore.

The Budget aims to foster inclusive growth, economic stability, and sustainable development while focusing on youth empowerment, farmer welfare, infrastructure expansion, and financial discipline.

Presenting his seventh consecutive Budget since assuming office in 2019, Tamang reiterated his government’s commitment to maintaining fiscal prudence while ensuring the overall progress of Sikkim. He stressed that the Budget has been carefully structured to strengthen the economy, promote self-reliance, and enhance the welfare of all citizens.

The Budget allocates Rs 11,028 crore for revenue expenditure, which covers administrative expenses, salaries, and social welfare schemes. Additionally, Rs 5,168 crore has been designated for capital outlay, aimed at infrastructure development, modernization of public services, and long-term asset creation.

A significant portion of the state's revenue will come from central sources. The devolution of central taxes is projected at Rs 5,519 crore, making it the largest contributor to the state's receipts. Additionally, the Central Government will provide Rs 2,600 crore in grants and aid, further supporting Sikkim’s developmental initiatives.

The state government will generate its own revenue through tax collections amounting to Rs 2,076 crore, while non-tax revenue sources, such as fees, royalties, and other earnings, are expected to contribute Rs 1,007 crore. To bridge the remaining fiscal gap, the government plans to borrow Rs 2,651 crore, ensuring that critical infrastructure and welfare programs remain well-funded.

The Chief Minister emphasized that the Budget has been designed to empower youth, uplift farmers, strengthen infrastructure, and ensure sound financial management.

The government is committed to enhancing education, skill development, and entrepreneurship opportunities for young people. Investment in higher education, vocational training, and digital literacy will be prioritized to ensure that Sikkim’s youth are equipped with the skills necessary for the evolving job market. Additionally, financial incentives and support for start-ups and self-employment ventures will be expanded to foster a culture of innovation and economic self-reliance.

The Budget makes provisions to boost the agriculture sector, recognizing it as a critical pillar of the state's economy. Increased funding for modern farming techniques, irrigation projects, and organic farming initiatives aims to enhance productivity and rural incomes. The government will also provide subsidies, financial assistance, and access to markets for farmers to ensure the sustainability and profitability of agricultural activities.

A major chunk of the capital expenditure is dedicated to strengthening Sikkim’s infrastructure, with investments planned for road networks, bridges, power projects, water supply systems, and urban development. The government also aims to upgrade tourism infrastructure, given that tourism is a key economic driver for the state. By improving connectivity and public utilities, the government seeks to create better living conditions and economic opportunities for residents.

CM Tamang assured that his government remains committed to transparent governance and fiscal discipline. A sum of Rs 2,896 crore has been earmarked for Centrally-sponsored schemes, ensuring that Sikkim fully utilizes funds available from national programs.

The government also plans to enhance its revenue-generating capacity by improving tax collection mechanisms and reducing fiscal deficits through efficient budget management. The focus remains on optimizing expenditure without compromising on development priorities, ensuring that every rupee spent translates into meaningful growth.

Concluding his Budget speech, CM Tamang emphasized that the 2025-26 financial plan lays a strong foundation for economic resilience and social equity. He assured that his government would continue working towards a self-sustaining, progressive, and inclusive Sikkim.