SKM Govt failed to safeguard Sikkim’s financial interests: CAP

GANGTOK,: The Citizen Action Party (CAP) Sikkim has strongly condemned the alleged inaction and failure of the SKM government in safeguarding the financial interests of the State under the recommendations of the Sixteenth Finance Commission of India.

“As per the recommendations of the Sixteenth Finance Commission, Sikkim’s share in the divisible pool of Central Taxes has been reduced to 0.34% for the period 2026–31, compared to 0.39% under the Fifteenth Finance Commission of India. Though this may appear to be a marginal decline of 0.05 percentage points, for a small Himalayan State like Sikkim, even such a reduction has significant fiscal consequences. This structural decline in percentage share reflects a weakening of Sikkim’s position in the national fiscal framework and directly impacts the long-term flow of resources to the State,” said the CAP Sikkim in a press statement on Sunday.

According to CAP Sikkim, Sikkim’s share of central tax devolution for the financial year 2026–27 has been reduced by Rs 292.79 crore compared to the allocations for the financial year 2025–26. The State received Rs 5404.74 crore in 2025–26 as its share from Union taxes, which has now been reduced to Rs 5112.95 crore, said the party.

“For a small, resource-constrained and strategically sensitive Himalayan State like Sikkim, such a sharp reduction is deeply alarming. At a time when the cost of infrastructure development, climate resilience, rural connectivity, public welfare, and committed expenditures of the government continue to rise, a decline of nearly Rs 300 crore represents a serious financial setback that will ultimately affect developmental momentum,” said CAP Sikkim spokesperson Albert Gurung.

The CAP Sikkim spokesperson asked why did the SKM government failed to effectively present Sikkim’s case before the Finance Commission. What concrete steps were taken to protect Sikkim’s fiscal share under the revised devolution criteria, he further asked.

Gurung maintained that the SKM government’s inability to anticipate and address this reduction demonstrates weak fiscal planning and poor political negotiation. A responsible government must proactively engage with the Centre to ensure that Sikkim’s interests are firmly protected in every constitutional and financial forum, he said.

“The Citizen Action Party–Sikkim demands immediate transparency from the SKM government and a clear roadmap outlining how it intends to compensate for this financial shortfall without burdening the people of Sikkim through increased taxes, fees, or debt. Sikkim’s future cannot be compromised due to administrative complacency and lack of political will,” said the spokesperson.