Sikkim government presents Rs 1.6 lakh crore budget for 2025-26

The Government of Sikkim has presented its Annual Financial Statement for the financial year 2025-26, outlining a total budget of ₹1,59,403 crore. The budget focuses on tax revenue, non-tax revenue, grants, and public welfare initiatives to ensure economic stability and growth.

Chief Minister Prem Singh Tamang, who is also the Finance Minister, presented the budget in the Sikkim Legislative Assembly. The financial statement includes detailed estimates of the state’s income and expenditure, ensuring a balance between revenue generation and developmental spending.

The total revenue receipts for 2025-26 are estimated at ₹1,22,313 crore, which includes tax and non-tax revenues, along with grants from the central government. The total expenditure for the same period is projected at ₹1,10,281 crore under the revenue account and ₹51,675 crore under the capital account.

Key allocations in the budget include:

• Tax Revenue: ₹75,953 crore

• Non-Tax Revenue: ₹10,072 crore

• Grants from the Central Government: ₹36,288 crore

On the expenditure side, the major components are:

• General Services: ₹45,622 crore

• Social Services: ₹33,998 crore

• Economic Services: ₹29,225 crore

The budget gives special focus to education, health, rural development, infrastructure, and social welfare. Some of the key sector-wise allocations are:

• Education, Sports, and Arts: ₹17,303 crore

• Health and Family Welfare: ₹7,195 crore

• Water Supply and Sanitation: ₹10,741 crore

• Agriculture and Rural Development: ₹14,649 crore

• Power and Energy: ₹5,409 crore

• Transport (Roads and Bridges): ₹6,703 crore

The government has also increased spending on pensions, subsidies, and relief funds to support retired employees, economically weaker sections, and disaster-affected areas.

To fund its ambitious projects, the government aims to increase revenue collection through Goods and Services Tax (GST), income tax, property tax, and excise duties. The estimated revenue from these taxes is:

• GST (CGST + SGST): ₹27,241 crore

• Income Tax (Corporation + Personal): ₹36,174 crore

• State Excise and Sales Tax: ₹7,567 crore

• Vehicle Tax and Other Duties: ₹1,202 crore

Apart from tax revenue, the state government expects to earn ₹9,300 crore from power generation, police services, tourism, and other non-tax sources.

A significant portion of the budget has been allocated for capital expenditure to fund large-scale development projects. Some of the major investments include:

• Roads and Bridges: ₹6,703 crore

• Housing and Urban Development: ₹4,594 crore

• Power Infrastructure: ₹4,190 crore

• Tourism Development: ₹3,476 crore

• Irrigation and Flood Control: ₹1,305 crore

The government has also made provisions for public debt repayment, with ₹37,086 crore allocated for loan repayments to maintain fiscal discipline.

The budget highlights the government’s commitment to job creation and skill development. With increasing investments in industries, small businesses, and vocational education, Sikkim aims to reduce unemployment and boost entrepreneurship.

To encourage private sector investment, the government has proposed policy reforms and incentives for new industries. Additionally, the state plans to enhance tourism, agriculture, and small-scale industries to strengthen local economies.