SIkkim: Citizen Action Party raises concern over state borrowings, submits memorandum to Finance Ministry

The Citizen Action Party-Sikkim (CAP-Sikkim) has raised concerns about how the Government of Sikkim is borrowing funds from the central government. On Tuesday, a team from the party met senior officials at the Ministry of Finance in New Delhi. The team was led by Mr. Pobin Hang Subba, the National Coordinator of the party, and Mr. Kiran Zimba, the Vice President.

The main issue raised by the party was about the ongoing borrowing by the Government of Sikkim under the Pension Fund Adjustment (PFA) Scheme. According to CAP-Sikkim, this scheme is only for states that follow the National Pension Scheme (NPS). However, the Government of Sikkim has already announced that it is going back to the Old Pension Scheme (OPS). The state had even issued an official notification about this change. Despite this, the state government continues to borrow under the PFA Scheme, which the party says is not right.

In the memorandum submitted to the Secretary of the Department of Financial Services, the party said that this action is not just questionable, but it goes against the rules and the idea behind the pension schemes. They said the government cannot say one thing and do another. If the state has moved away from NPS, it should not take money from a scheme that is made for NPS-following states.

The party’s delegation also pointed out that this borrowing has not just happened once. It has been going on for the past few financial years. More importantly, the state has also planned to continue this kind of borrowing in the coming financial year 2025–26. CAP-Sikkim said this shows a clear contradiction in policy and raises questions about how the state is managing its finances.

The memorandum called for the Ministry of Finance to look into the matter seriously. The party has requested a detailed examination to find out how such borrowings have been allowed and whether there has been a misuse of the central schemes. CAP-Sikkim stressed the importance of financial honesty and transparency. They said central government schemes must be followed properly and should not be twisted or used wrongly by any state government.

The party also said that if this kind of thing continues, it could affect the entire pension system and damage the trust people have in government financial policies. CAP-Sikkim believes that such actions could also hurt the credibility of the central government’s financial mechanisms.

The delegation said they are hopeful that the Ministry of Finance will take quick and proper action. They want steps to be taken so that public money is not misused and state governments follow the rules that are meant for everyone.