State BJP advisor demands white paper on Sikkim’s fiscal condition

GANGTOK,: Veteran politician Tseten Tashi Bhutia, also the State BJP unit’s chief advisor, has expressed concerns on the per capita debt burden of Sikkim.

“Sikkim stands today at a critical juncture in its fiscal journey. While official data shows an impressive per capita income of Rs.7,07,181 for 2023–24, among the highest in the country, there is a deeply troubling undercurrent - our people are also burdened with the highest per capita debt in the country,” said Bhutia in a press statement Monday.

According to the 2024–25 budget, the State’s GSDP is projected at Rs. 52,555 crore (an 11% rise) while the State debt has increased by 83% in five years, now at Rs. 22,380.62 crore - 42.6% of GSDP,  said the State BJP chief advisor.

He added that the fiscal deficit is estimated at Rs. 2.840 crore which is 5.4% of the GSDP.

“This contradiction raises hard questions: Where is the money going? Why does prosperity on paper not translate to security for ordinary citizens?,” asked Bhutia.

The veteran politician expressed that key concerns include vote bank freebies, lottery business dependency, misallocation of resources, and debt-fuelled populism. Rampant distribution of freebies for electoral gains drains the State resources and diverts funds away from vital sectors like education, health, and infrastructure, he said.

“High GSDP driven by pharmaceuticals, hydropower, and lotteries often fails to generate corresponding employment or stable State revenue. For example, the pharma sector’s employment contribution is negligible, hydropower’s actual revenue share to the State is just 12%, and agriculture is in decline due to farm labour shortages.”

“Higher GSDP allows for more borrowing, but the funds are often used for short-term political schemes rather than long-term productive investments — creating a dangerous debt spiral,” said Bhutia.

Bhutia demanded that the State government to release a comprehensive white paper on the fiscal condition of Sikkim. This white paper should disclose the full debt profile and borrowing plans, provide details on lottery revenues and their social impact, audit the effectiveness of subsidies, freebies, and welfare schemes, assess revenue contributions from pharma, hydropower, tourism, lottery and agriculture, and outline concrete steps to curb wasteful expenditure, corruption, and leakages, he said.

“It is high time we move beyond misleading statistics. Sikkim’s high per capita income must translate into genuine prosperity for every citizen, not hidden liabilities. Without prudent financial management, our beautiful State risks sinking under unsustainable debt,” said Bhutia.