Sikkim seeks hike from 15% to 20% in 16th Finance Commission allocation

The Sikkim Government has put forward a proposal to increase the allocation of the divisible pool for population and area from the current 15% under the 15th Finance Commission to 20% in the forthcoming 16th Finance Commission. This move is part of the state’s broader strategy to secure a larger share of central funds for its development needs.

Dr. Arvind Panagariya, Chairman of the commission, shared insights into the proposal during a press conference. He said that Sikkim has introduced two innovative criteria — Forest Cover Criteria and Sustainable Development Goals (SDGs) — as part of its submission. These criteria aim to highlight the state's unique contributions to national environmental sustainability and its alignment with global development targets.

The Forest Cover Criteria recognizes Sikkim’s vast green cover and its efforts to maintain ecological balance, while the SDG criterion underlines the state's commitment to achieving global benchmarks in areas like health, education, and poverty alleviation. By incorporating these measures, the state hopes to increase its share in the divisible pool from the current 0.348% to 0.72%, effectively doubling its allocation.

"This is a crucial step for Sikkim," said Dr. Panagariya. "The innovative approach not only underscores the state’s dedication to sustainability but also ensures that the allocation framework is equitable and inclusive."