BJP welcomes Sikkim Budget, seeks stronger focus on revenue generation
Gangtok, July 27
BJP's Sikkim unit on Monday welcomed the state government's Rs 18,455-crore Budget for 2026-27, describing it as development-oriented, while urging the government to place greater emphasis on revenue generation, timely implementation of projects and employment creation.
Speaking to IANS, BJP-Sikkim spokesperson Passang Sherpa said the Budget contained several initiatives that would benefit farmers, improve road infrastructure and strengthen healthcare, but stressed that the state must work towards reducing its dependence on borrowings by creating sustainable sources of income.
Sherpa welcomed the allocation of Rs 5,896 crore for capital expenditure and Rs 11,733 crore for revenue expenditure, saying investments in infrastructure would contribute to Sikkim's long-term growth.
He also appreciated the government's decision to earmark Rs 546 crore for weather-proof road carpeting using mastic asphalt technology and Rs 362 crore for road repairs. The BJP leader, however, suggested that road improvement works should begin in remote villages before being extended to tourism destinations to ensure balanced development and improve connectivity in rural areas.
He also welcomed the State Interest Subvention Scheme for farmers, under which beneficiaries repaying Kisan Credit Card crop loans on time will have to pay only one per cent interest.
Sherpa noted that three per cent of the interest would be borne by the Centre and another three per cent by the state government, significantly reducing the financial burden on farmers. He further appreciated the proposal to establish an Assisted Reproductive Technology Centre at STNM Hospital, describing it as a timely initiative in view of concerns raised by the Comptroller and Auditor General (CAG) over Sikkim's declining fertility rate.
He welcomed the announcement to construct 197 houses under the Sikkim Garib Awas Yojana.
While appreciating these measures, Sherpa said the Budget should have allocated more resources for youth employment and skill development. He said that although the Sikkim INSPIRES programme was a positive initiative, additional financial support would be required to create meaningful employment opportunities and strengthen the state's skilled workforce.
He also expressed concern over what he described as inadequate allocations for sectors such as dairy farming and tourism diversification despite their potential to generate employment and boost the rural economy.
Calling for greater fiscal self-reliance, Sherpa said Sikkim's long-term financial stability depended on enhancing its own revenue rather than relying heavily on borrowings and Central assistance.
He urged the state government to pursue implementation of provisions under the Companies Act of 1961 and 2013 in consultation with the Centre, saying these, along with the State Bank of Sikkim, could significantly strengthen the state's finances.
Sherpa also cautioned that timely execution of projects and submission of utilisation certificates were essential for securing continued Central funding, adding that delays could result in funds being diverted to other states.
Noting that the Budget had been presented later than usual, Sherpa said its effective implementation during the remaining months of the financial year would be the key test of the government's commitment.
The Budget was presented on July 23 by Chief Minister Prem Singh Tamang.
— IANS
Reader Comments
Passang Sherpa has raised valid points about road works needing to start from remote villages first. So many rural areas in Sikkim still lack proper connectivity even after all these years. The mastic asphalt technology for weather-proof roads is welcome but implementation matters more than announcements.
The ART centre at STNM Hospital is a progressive step given Sikkim's falling fertility rate - CAG was rightly concerned. But let's not forget that basic healthcare infrastructure in many district hospitals still needs improvement. The budget should have addressed that more substantially.
Interesting to see Indian state-level politics. The push for revenue generation and reduced borrowing seems wise. The emphasis on utilisation certificates for central funds is also smart - many projects stall due to paperwork delays. Hope Sikkim can balance development with fiscal prudence.
The budget allocation of Rs 546 crore for weather-proof roads is good, but why only 197 houses under Sikkim Garib Awas Yojana? That seems very inadequate for the housing needs in the state. Also, dairy farming and tourism diversification needed more funding - these are key sectors for local employment. 🏔️
It's refreshing to see opposition parties providing constructive feedback rather than just criticizing. The suggestion to use State Bank of Sikkim and Companies Act provisions to strengthen state finances is interesting. Sikkim has unique advantages that could be leveraged better for revenue generation.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.