In March 2025, Chief Minister (CM) of Sikkim, also the Minister-in-Charge of the Finance Department, Prem Singh Tamang, presented the Annual General Budget for the Financial Year 2025-26(FY26), amounting to Rs 16,196 crore, focusing on eradicating poverty and achieving total literacy.
- A key feature of the budget is the allocation of Rs. 2,896 crore under Centrally Sponsored Schemes (CSS), aimed at maximizing central funding for crucial developmental projects in Sikkim.
Key Highlights:
i.For FY26, the state government has planned Rs 11,028 crore for Revenue Expenditure(RE) and Rs 5,168 crore for capital investment.
ii.The state will generate revenue from multiple sources. The Centre’s devolution of taxes is estimated at Rs 5,519 crore, while grants and aids will add Rs 2,600 crore.
iii.The state aims to collect Rs 2,076 crore from its own tax revenue, while non-tax revenue, including earnings from government services, is expected to be Rs 1,007 crore.
iv.To meet financial requirements, the government will also raise Rs 2,651 crore through borrowings.
Key Allocations:
I.Education and Sports Sector:
i.The government has allocated Rs 17,303 crore for education, sports, and arts to enhance learning, promote sports, and support cultural programs.
ii.Key initiatives include Yoga and Mental Health programs, the CM Merit Scholarship Scheme, and educational tours.
- Sports infrastructure will also be improved with investments in Tarundeep Rai Archery Academy, Reshithang Khel Gaon, Jas Lal Boxing Academy, and a cricket academy in Pakyong, Sikkim.
II.Health Sector:
i.A total of Rs 7,195 crore (6% of Budget) has been set aside for healthcare, ensuring better medical facilities and services. The funds will be used for purchasing new hospital equipment, upgrading specialty wards, and enhancing medical infrastructure.
ii.Schemes such as Mukhya Mantri Swasthya Suvidha Yojana(MMSSY) and the CM’s Medical Assistance Scheme will continue. A Positive Pressure Kidney Transplant Intensive care Unit (ICU) will be installed at STNM Hospital, Sikkim and a new Primary Health Sub-Center (PHSC) at Melli will be built with Rs 10 crore.
III.Water Supply and Sanitation:
i.A total of Rs 10,741 crore has allocated to improve water supply and sanitation facilities across the state. This includes dedicated projects such as the water supply to Mangalbaria block from Sapley Source at Upper Resikhola, Sribadam in Soreng district of Sikkim.
IV.Agriculture Sector:
i.The agriculture and rural development sectors have been given Rs 14,649 crore (8%) to enhance rural connectivity, sanitation, and agricultural sustainability.
ii.Key initiatives include the Shravan Kumar Award (recognizing the best son and daughter in each Gram Panchayat Unit), Mahila Kisan Sashaktikaran Yojana, and Sikkim Aama Sahayog Yojana
V.Power and Energy:
A total of Rs 5,409 crore has been allocated to develop the power sector by strengthening electricity supply, grid infrastructure, and renewable energy (RE) projects.
VI.Transport sector:
The transport sector, covering roads and bridges, has been allocated Rs 6,703 crore to improve connectivity and road infrastructure
VII.Disaster Management:
9% of the budget has been dedicated to disaster management and infrastructure rehabilitation. Funds will be used for flash flood mitigation efforts. The provisions have been made for the rehabilitation of Glacial Lake Outburst Flood (GLOF) victims in Naga, Mangan district of Sikkim.
VIII.Social Welfare:
To support vulnerable communities, 5% of the budget is allocated for social welfare, focusing on women and child development. Key initiatives include Aama schemes, Social Security Pensions, and a working women’s hostel at Tadong for safe accommodation.
IX.Tourism:
Tourism receives 3% of the budget to boost infrastructure and attract visitors. Key projects include Singshore Bridge Glass Skywalk, Bhaledhunga ropeway, Dodak Eco-Tourism Complex, and Cho-dzo Lake Tourist Festival at Ravangla, Sikkim.
Institute for Transforming Sikkim (ITS):
A major initiative in this budget is the Institute for Transforming Sikkim (ITS), a policy think tank designed to accelerate the state’s development. It will be headed by the CM of Sikkim, will work with NITI (National Institute for Transforming India) Aayog to drive policy reforms, strengthen governance, and optimize resource utilization.
About Sikkim:
Chief Minister (CM)– Prem Singh Tamang
Governor– Om Prakash Mathur
Capital– Gangtok
Ramsar site– Khachoedpalri Wetland
