Gangtok: On Monday, Sikkim Chief Minister Prem Singh Golay presented a surplus budget of Rs 14,490.67 crore for the fiscal year 2024-25 during the first session of the 11th Sikkim Legislative Assembly. This budget marks a substantial increase from previous years, reflecting the state’s financial health and strategic planning.
Gross and Net Expenditure Overview
The gross expenditure provision for the budget stands at Rs 14,490.67 crore. After accounting for recoveries amounting to Rs 487.97 crore, the net outgo is calculated at Rs 14,002.69 crore. Golay, who also holds the finance portfolio, emphasized the significant growth compared to previous years. “I am pleased to present a budget of Rs 14,490.67 crore, which is a 109% increase compared to 2018-19,” Golay stated during his address.
Revenue Sources and Allocation
The budget outlines contributions from various revenue streams, including Rs 2,163.54 crore from own tax revenue and Rs 926.97 crore from non-tax revenue. Additionally, the total gross expenditure incorporates Rs 2,527.99 crore allocated under Centrally Sponsored Schemes.
The state’s capital expenditure has seen a dramatic rise from Rs 720.61 crore in 2019-20 to Rs 2,661 crore in 2023-24, marking an increase of over 269%. For the 2024-25 fiscal year, the capital expenditure is projected to increase further to Rs 3,752.90 crore.
Sikkim Budget 2024-25 Revenue Breakdown
For every Rs 100 received by the state government in the 2024-25 budget:
- Rs 21 comes from State Own Tax Revenue.
- Rs 9 from State Own Non-Tax Revenue.
- Rs 48 is sourced from the State’s Share of Central Taxes.
- Rs 22 comes from Capital Receipts authorized by the Union Ministry of Finance.
Sikkim Budget 2024-25 Expenditure Allocation
Out of every Rs 100 spent by the state government:
- Rs 40 is allocated to salary and wages.
- Rs 14 to pensions.
- Rs 9 to interest payments.
- Rs 7 to loan repayments.
- Rs 1 to grants for autonomous institutions, commissions, and boards.
- The remaining Rs 29 is dedicated to other developmental activities, including capital works.
Focus on Development and Growth
The 2024-25 budget reflects the government’s commitment to enhancing the state’s infrastructure and public services. The substantial increase in capital expenditure highlights efforts to boost long-term growth and development. This budget underscores Sikkim’s proactive approach in addressing financial challenges and optimizing resources for the welfare of its citizens.
Reactions and Implications
Political analysts and economists have noted the strategic distribution of funds, aimed at bolstering the state’s economic stability and growth prospects. The increase in capital expenditure is expected to spur development projects, creating job opportunities and improving public services.
Economist Dr. Priya Sharma commented, “The significant rise in capital expenditure is a positive sign for Sikkim’s future. It indicates the government’s focus on sustainable development and economic growth.”
The budget presentation has sparked discussions among policymakers and the public, with many appreciating the government’s transparent approach to financial planning and resource allocation.
Future Prospects
As Sikkim continues to navigate economic challenges, the 2024-25 budget serves as a blueprint for sustainable development and financial stability. The emphasis on increased capital expenditure and strategic allocation of resources reflects the government’s vision for a prosperous and self-reliant Sikkim.
Gangtokian Web Team