Sikkim unveils Rs 1.6 lakh crore budget for 2025-26, focuses on fiscal discipline and growth

The Sikkim government, led by Chief Minister Prem Singh Tamang, has presented the Annual General Budget for the financial year 2025-26, outlining a total outlay of Rs 16,196 crore. 

The budget, tabled in the Sikkim Legislative Assembly today, prioritizes fiscal discipline, sustainable growth, and public welfare.

The budget documents include the Explanatory Memorandum, Annual Financial Statement, Estimates of Receipts, and Demands for Grants. The total gross expenditure provision for the year stands at ₹16,647 crore, with recoveries amounting to ₹451 crore, bringing the net outgo to ₹16,196 crore.

Key financial allocations include ₹11,028 crore for revenue expenditure, ₹5,168 crore for capital expenditure, and ₹2,896 crore under Centrally Sponsored Schemes (CSS). The budget aims to strengthen central funding, infrastructure, and public service initiatives.

CM Prem Singh Tamang, who also holds the Finance portfolio, emphasized that the budget ensures financial prudence while accelerating developmental projects. The government has laid special emphasis on education, healthcare, rural development, infrastructure, and social welfare, with major allocations for key sectors:

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Education, Sports, and Arts – ₹17,303 crore
Health and Family Welfare – ₹7,195 crore
Water Supply and Sanitation – ₹10,741 crore
Agriculture and Rural Development – ₹14,649 crore
Power and Energy – ₹5,409 crore
Transport (Roads and Bridges) – ₹6,703 crore

The government also announced increased spending on pensions, subsidies, and relief funds to support retired employees, economically weaker sections, and disaster-affected areas.

To finance its ambitious development plans, the government aims to boost revenue collection through Goods and Services Tax (GST), income tax, property tax, and excise duties. Estimated tax revenues include ₹27,241 crore from GST, ₹36,174 crore from income tax, ₹7,567 crore from state excise and sales tax, and ₹1,202 crore from vehicle tax and other duties.

Beyond taxation, the state government expects to earn ₹9,300 crore from power generation, police services, tourism, and other non-tax sources. A significant portion of the budget has been earmarked for capital expenditure, with substantial investments in infrastructure:

Roads and Bridges – ₹6,703 crore
Housing and Urban Development – ₹4,594 crore
Power Infrastructure – ₹4,190 crore
Tourism Development – ₹3,476 crore
Irrigation and Flood Control – ₹1,305 crore

Additionally, ₹37,086 crore has been allocated for public debt repayment to maintain fiscal discipline.

The budget also focuses on job creation, skill development, and private sector investments to boost economic growth. Policy reforms and incentives have been proposed to encourage industries, tourism, and small businesses. Sikkim's commitment to strengthening local economies through agriculture and small-scale industries is also reflected in the budget.

With a balance between revenue generation and developmental spending, the 2025-26 budget positions Sikkim on a path of sustained economic progress, ensuring long-term financial stability and prosperity.