Report on Sikkim's financial health and development to be released in October 2025, says Dr. Arvind Panagariya
He further clarified that while the Finance Commission does consider environmental contributions and sustainable development, it must also adhere to fair and standardized criteria applicable across all states.
LOCAL
The 16th Finance Commission of India held a press conference in Gangtok today, where Dr. Arvind Panagariya, Chairman of the Commission spoke on the financial health and development of Sikkim. Dr. Panagariya said that the final report on Sikkim’s financial situation, along with the Commission’s recommendations, will be released in October 2025.
During the conference, Dr. Panagariya spoke about the Commission's ongoing evaluation of the financial conditions in various states, including Sikkim. He spoke on the importance of standardized criteria for the allocation of funds to states, focusing on factors such as forest cover, contributions to national GDP and per capita income. Dr. Panagariya acknowledged Sikkim’s notable contributions to the country, particularly in areas like sustainable development, energy security and environmental protection.
He further clarified that while the Finance Commission does consider environmental contributions and sustainable development, it must also adhere to fair and standardized criteria applicable across all states. “We do take into account factors like forest cover and Sikkim's high per capita income, but the criteria must remain equitable for all states,” Dr. Panagariya said.
The issue of connectivity in Sikkim was also raised during the press conference. Dr. Panagariya said that the topic of infrastructure challenges in the state has come up in every meeting, and the Commission is aware of the difficulties Sikkim faces. He pointed out that any specific support for improving infrastructure would likely require central government grants, which depend on the overall budgetary priorities of the nation.
Dr. Panagariya said that the Finance Commission’s recommendations aim is to balance the needs of all states and ensure fairness and equity. He said that the Commission’s work is driven by the principle of providing equal public services to all citizens across India, without any state being left behind.