GANGTOK — On Sunday, July 26, 2026, the Sikkim BJP welcomed several people‑focused measures announced in the State Budget 2026‑27 but warned the plan relies heavily on Central support and lacks a clear roadmap for job creation, tourism diversification and small‑business support. BJP Sikkim spokesperson Passang Sherpa made the remarks at a press briefing in Amdo Golai after the Rs 18,455 crore budget was passed.
Sherpa said the party had examined the Budget Book and noted Sikkim’s Gross State Domestic Product (GSDP) at Rs 62,973 crore and the budget outlay at Rs 18,455 crore. Of that, Rs 5,896 crore is earmarked for capital expenditure and Rs 11,733 crore for revenue expenditure, which covers salaries, reimbursements and routine administrative costs. The State’s own tax and non‑tax revenue is projected at only Rs 3,399 crore.
The BJP spokesperson questioned how the remainder of the budget would be financed. He said Sikkim will receive Rs 5,113 crore as its share of Central taxes (a marginal fall in the State’s share from 0.038% to 0.033%), plus Rs 3,967 crore as grant‑in‑aid and Rs 3,312 crore under Special Central Assistance for special category States. After accounting for these inflows and the State’s own revenue, Sherpa said the balance will be met through gross borrowing of Rs 2,765 crore in the current year.
“Our internal revenue of Rs 3,399 crore can cover only about 27% of employee salaries. Beyond that, for almost everything else, we are dependent on the Central Government,” Sherpa said, arguing that Sikkim’s revenue expenditure remains exceptionally high. He added that the BJP believes continued Central support reflects the Centre’s commitment to the State’s development.
Despite reservations, Sherpa praised several budget measures. Farmers will see a further cut in the Kisan Credit Card interest burden: an additional 3% state subsidy on timely repayment will reduce effective KCC rates to 1% for agriculture and allied activities. Road funding includes Rs 546 crore for mastic‑asphalt surfacing of 570 km and Rs 362 crore for general repairs, though Sherpa urged that drainage and retaining walls be built alongside roads to prevent landslide damage.
Sherpa also welcomed health and education measures: provision for an Assisted Reproductive Technology (ART) centre at STNM Hospital, an HPV screening drive with 1.5 lakh test kits, approval for a medical college MBBS programme with 100% gap funding from the Centre, and Rs 2,768 crore for education (nearly 15% of the budget). Housing allocations include Rs 250 crore to complete Phase II of the Sikkim Garib Awas Yojana and Rs 108 crore to build 1,000 homes for economically weaker families. The budget also introduces e‑Sanction, e‑Budgeting and e‑Payment systems aimed at improving transparency.
Sherpa flagged unfinished issues: the budget lacks a comprehensive skills‑development and direct employment strategy for youth; dairy farmers are still awaiting a pending Rs 8 per‑litre incentive, and only Rs 4 crore has been set aside for incentives despite daily state procurement of 60,000–70,000 litres through the Sikkim Milk Union. He urged greater investment in pilgrimage, village and adventure tourism and called for stronger policy and financial support for local start‑ups and MSMEs.
Sherpa described passage of the Rs 18,455 crore budget as a noteworthy achievement but cautioned that its success will hinge on how effectively funds are used to boost road connectivity, digital governance, public services and economic opportunities for Sikkim’s people.
Original Source: https://www.sikkimexpress.com/news-details/state-budget-2026-27-bjp-welcomes-people-centric-initiatives-raises-concerns-over-jobs-revenue
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