16th Finance Commission holds discussions with Sikkim Govt, explore ways to boost State’s economy

GANGTOK, (IPR): The 16th Finance Commission held a meeting with the Government of Sikkim at the conference hall of Tashiling Secretariat in Gangtok on Monday.

Dr Arvind Panagariya, chairman of the 16th Finance Commission of India, was accompanied by commission members, namely Ajay Narayan Jha, Annie George Mathew, Dr Manoj Panda, Ritvik Pandey, KK Mishra, Kumar Vivek, Davinder Chodha, Abhishek Nandan, Promila Rajvanshi, Dr Bhabesh Hazarika, and Arushi Gupta.

Chief Minister Prem Singh Tamang-Golay attended the meeting alongside Dr Mahendra P Lama, Emeritus Chief Economic Advisor to the Chief Minister; VB Pathak, chief administrator cum cabinet secretary, R Telang, chief secretary, together with heads of departments and officials from the State government.

In his welcome address, R Telang, chief secretary of the Government of Sikkim, extended a warm welcome to the 16th Finance Commission, while providing a brief overview of the State.

Chief Minister Prem Singh Tamang, in his introductory remarks, welcomed the chairman and members of the commission to Sikkim. He acknowledged the significant contributions of the chairman towards the development of India and noted his role as an inspiration for young scholars.

The Chief Minister emphasised that Sikkim is the most integrated yet least connected State in India, possessing the highest per capita income in the country and holding the distinction of being the most peaceful border State in India. He articulated his vision to develop Sikkim as the Green Capital of India and acknowledged the need to address the constraints faced by a small State with a lower population.

Furthermore, the Chief Minister informed the chairman about the establishment of the Sikkim NITI Aayog, which seeks to formulate plans for Sikkim Vision 2047 in alignment with the broader vision of Viksit Bharat 2047. He concluded by welcoming the commission to the state of Sikkim, expressing the hope that their time spent in Sikkim would be fruitful in understanding the challenges faced by a border State characterised by a small land mass and population.

Dr Arvind Panagariya, chairman of the 16th Finance Commission of India, expressed his gratitude for the warm hospitality extended to the Commission. He extended his congratulations to the Chief Minister on the occasion of the 50th anniversary of the State of Sikkim, recognising Sikkim as a source of pride for India.

Dr Panagariya noted that, given Sikkim's achievement of a higher per capita income, it is conceivable that the State could reach the goal of Vikasit Bharat ahead of the established target of 2047. He proposed that the Sikkim NITI Aayog formulate a Vision 2035, rather than focusing solely on 2047, as this presents a realistic and attainable objective.

He remarked on the challenges faced by Sikkim as part of the broader growth challenges encountered by India since gaining independence. However, he conveyed a sense of optimism regarding India's significant growth since the economic reforms of 1991.

Dr Panagariya also pointed out that the North East region had been relatively neglected in the post-reform era; however, the Prime Minister has now prioritised the North East, conducting exclusive meetings with the Chief Ministers of the northeastern States. He expressed hope that, within the next five years, some of the issues confronting the region will be addressed successfully.

Furthermore, he commended the State government for providing a detailed presentation and well-researched reports. In conclusion, the chairman elaborated on the operations of the commission.

VB Pathak delivered a presentation on the State finances and economic structure of Sikkim. He began by noting that Sikkim will be commemorating the completion of 50 years of its union with India, with a Golden Jubilee celebration scheduled for May 16, 2025.

He emphasised that these five decades have been characterised by significant periods of peace and prosperity, with no incidents necessitating intervention by paramilitary forces.

The chief administrator proceeded to outline the broad economic and fiscal landscape of the State, highlighting its achievements while also addressing the challenges faced, particularly focusing on the natural disasters that have adversely impacted the region.

The meeting transitioned into a dynamic interactive session, where members of the 16th Finance Commission engaged in a lively discussion with officials from the State Government.

The meeting was brought to a close with a formal vote of thanks delivered by Rinzing Chewang Bhutia, secretary of the Planning and Development department.

Highlights of CM’s address to 16^th Finance Commission

Connectivity Challenges:

 • Limited national highways (709 km) compared to other northeastern states.

 • Delayed infrastructure projects, including railways, airports, and digital connectivity.

 • The vulnerability of NH-10, Sikkim’s only road link, which faces severe disruptions post-monsoon.

Green Economy Initiatives:

 • Proposal to introduce QR codes for organic products to enhance transparency.

 • Vision to establish Sikkim as India’s first Green Capital.

 • Request for compensation for revenue forgone due to green policies.

Flash Flood Impact (October 2023):

 Appeal for financial aid to rebuild critical infrastructure, including hydropower projects.

Need for support to address non-traditional disasters like Glacial Lake Outburst Floods.

 Proposed Transformative Projects:

 • Chewa Bhanjyang Multimodal Corridor: Boosting trade under the “Act East Policy.”

 • New Gangtok Township: Relieving stress on existing infrastructure.

 • Mono Rail or Cable Car Network: Enhancing urban mobility.

 • Climate Change University: A research hub for the Eastern Himalayas.

 • State University: Addressing state-specific education needs.

Pharmaceutical Sector

 • Sikkim’s emergence as a pharmaceutical hub, with a call for greater taxation flexibility to harness its revenue potential.