development

24.01.18 Sikkim(SikkimPSC) Current Affairs

by

NORTH-EASTERN STATES

 

  • Khandu inaugurates World War II Memorial Museum in Arunachal
  • Arunachal Pradesh Chief Minister Pema Khandu inaugurated the World War II Memorial Museum in the state’s Changlang district bordering Myanmar.

 

  • Built by the Union Culture Ministry, the Rs 2.25 crore museum in memory of those who laid down their lives in WWII is located adjacent to the historic Stilwell Road.

 

  • Khandu visited the war memorial where remnants of the war, personal belongings of the soldiers and others involved were preserved.

 

 

INTERNATIONAL

 

·        Rachel Morrison 1st Oscar nominated female cinematographer

 

  • Rachel Morrison has become the first female cinematographer to receive an Oscar nomination in the 89-year-old history of the Awards. She has been nominated for her work in the film ‘Mudbound’. “The job of the cinematographer is to visualise emotion – things we as women are inherently good at,” said Rachel.

 

 

·        India inks $120 million loan agreement with World Bank to fund improved water supply in Uttarakhand

 

  • India signed $120 millionloan agreement with multilateral lending agency World Bank to help increase access to improved water supply services in in peri-urban areas in Uttarakhand.
  • The agreement was signed between Government of India, Government of Uttarakhand and World Bank Board.
  • The loan amount will be used for Uttarakhand Water Supply Program for Peri-Urban Areas to help the state to increase water supply coverage as well as ensure sustainable water supply service delivery in peri-urban areas.
  • The program will develop and implement service-oriented and efficient water supply for peri-urban areas, strengthen current monitoring and evaluation systems.
  • It will also provide dedicated incentives for preparation and adoption of of water supply ‘master-plans’ in peri-urban areas.

 

  • India Ranked 177 in Environmental Performance Index (EPI)

 

  • India has been ranked 177 among 180 countries in the Environmental Performance Index (EPI) – 2018. This index has been developed by Yale University and Columbia University in collaboration with the World Economic Forum and the Joint Research Centre of the European Commission.

 

  • Top 5 countries are Switzerland, France, Denmark, Malta and Sweden.

 

  • Top bottom countries are Nepal, India, Congo, Bangladesh, Burundi.

NATIONAL

 

·        India to Host 16th International Energy Forum Meet

 

  • The 16th International Energy Forum (IEF) Ministerial meetingwill be held in New Delhi in April 2018.
  • According to the Union Minister of Petroleum and Natural Gas Dharmendra Pradhan, the meeting will be hosted by Government of India in New Delhi and co-hosted by the Government of China and South Korea.
  • Representatives from 92 countries will be participating in the conference, including 72 member countries of IEF and 20 guest countries.

 

·        Andhra Pradesh and Zurich Sign Sister State Agreement

 

  • The Andhra Pradesh Governmentand the Canton of Zurich signed a letter of intent, to promote mutual prosperity and development.
  • The agreement was signed in the presence of Chief Minister of Andhra Pradesh N Chandrababu Naidu and Government Counselor Minister Carmen Walker Spah for sister state relation.
  • This will bring the State of Andhra Pradesh and Canton of Zurich closer and ensure that a framework is created, which supports the exchange between both the parties.

 

  • Tamil Nadu CM Edappadi K Palanichamy receives UNESCO Award.

 

  • Tamil Nadu Chief Minister Edappadi K Palanichamy received UNESCO Award of Merit awarded to the iconic Srirangam Ranganathaswamy temple in Tiruchirapalli. The award of merit was awarded by UNESCO Asia Pacific region for the reconstruction activities undertaken in temple without in least affecting its traditional splendour and Vedic rituals.

  • It is considered as one of the most important of the 108 main Vishnu temples (Divyadesams). It is Vaishnava temple built in Tamil or Dravidian style of architecture. It is located on an islet formed by twin rivers: Coleroon and Cauvery. The temple complex is situated in sprawling ground of more than 156 acres. The temple and 1000 pillared hall were constructed in the Vijayanagar period (1336–1565) .

 

 

·        Water storage level of India’s 91 major reservoirs drops 2%

  • The water storage available in 91 major reservoirs of the country for the week ending on January 11, 2018 was 80.484 BCM which is 50% of the total storage capacity of these reservoirs. This percentage was at 52 for the week ending January 4, 2018.

 

  • The total storage capacity of these 91 reservoirs is 161.993 BCM, which is about 63% of the total storage capacity of 257.812 BCM which is estimated to have been created in the country. Thirty seven of the 91 reservoirs have hydropower benefit with installed capacity of more than 60 MW.

 

  • The storage during the corresponding period of last year was 58% and average storage of last ten years during the corresponding period was 54% of live storage capacity of these reservoirs. Thus, the storage during the current year is less than that of the previous year and is also less than the average storage of the last ten years during the corresponding period.

 

·        Monsoon rainfall down only 24mm in country since 1981

  • Over 50% of sub-divisions in India have witnessed a decreasing trend in monsoon rainfall from 1981 to 2016, but the country has seen a 24mm drop during the period, a fresh Indian Institute of Tropical Meteorology (IITM) report has found.

 

  • The study stated that the number of deficient monsoon years during this period have been more than excess monsoon years — with 20 excess and 27 deficient years.

 

Sikkim Food security

by

Sikkim Food security

Food Security Index of India as well as Sikkm

  • In India, the dimension of food security is important despite attaining self-sufficiency in food production. Though there has been a considerable improvement in productivity and production of rice and wheat, we have not been able to eliminate chronic hunger and poverty. Understanding of the different dimensions of food security, therefore, is of critical importance.
  • The concept of food security in the Indian context has been increasingly refined during the last 50 years.
  • After World War II, food security meant building emergency grain reserves and ensuring the physical availability of food in the market.Sikkim Food security
  • After the onset of green revolution in the late 1960s, it became obvious that economic access to food is equally important to ensure food security at the household level.
  • During the 1980s, the principle of social access was emphasised, with special reference to marginalised communities and gender discrimination.
  • After the United Nations Conference on Environment and Development (UNCED) conference in Rio de Janeiro, there has been an increasing recognition of the role of environmental factors in food security.
  • The ecological foundations essential for sustained agricultural progress are increasingly under stress due to human activities.
  • One of the early initiatives in assessing the food security scenario in the country was the release of a series of Atlases by M.S. Swaminathan Research Foundation (MSSRF) that looked into the food security in rural and urban areas and also the Sustainability of Food Security atlas of India.
  • Ensuring food security is an overall objective of development programmes in most developing economies like India. Several problems, such as hunger, malnutrition, under-nutrition and poverty, Association between Food Insecurity and Poverty Poverty Low productivity Human Development Food insecurity, hunger & Malnutrition Poor physical & Cognitive development arise due to food insecurity.

Historical View on Food Security across India as well as Sikkim

  • India‟s Public Distribution System (PDS) is the largest distribution network of its kind in the world. PDS was introduced around World War II as a war-time rationing measure.
  • Before the 1960s, distribution through PDS was generally dependant on imports of food grains.
  • It was expanded in the 1960s as a response to the food shortages of the time; subsequently, the government set up the Agriculture Prices Commission and the Food Corporation of India to improve domestic procurement and storage of food grains for PDS.
  • By the 1970s, PDS had evolved into a universal scheme for the distribution of subsidised food.
  • In the 1990s, the scheme was revamped to improve access of food grains to people in hilly and inaccessible areas, and to target the poor.
  • Subsequently, in 1997, the government launched the Targeted Public Distribution System (TPDS), with a focus on the poor.
  • TPDS aims to provide subsidised food and fuel to the poor through a network of ration shops.
  • Food grains such as rice and wheat that are provided under TPDS are procured from farmers, allocated to states and delivered to the ration shop where the beneficiary buys his entitlement.
  • The centre and states share the responsibilities of identifying the poor, procuring grains and delivering food grains to beneficiaries.
  • In September 2013, Parliament enacted the National Food Security Act, 2013.
  • The Act relies largely on the existing TPDS to deliver food grains as legal entitlements to poor households.
  • This marks a shift by making the right to food a justiciable right. In order to understand the implications of this Act, the note maps the food supply chain from the farmer to the beneficiary, identifies challenges to implementation of TPDS, and discusses alternatives to reform TPDS.

Sikkim Food Security also based on National Food Security

  • The National Development Council (NDC) in its 53rd meeting held on 29th May, 2007 adopted a resolution to launch a Food Security Mission comprising rice, wheat and pulses to increase the production of rice by 10 million tons, wheat by 8 million tons and pulses by 2 million tons by the end of the Eleventh Plan (2011-12).
  • Accordingly, a Centrally Sponsored Scheme, ‘National Food Security Mission’ (NFSM), was launched in October 2007.
  • The Mission is being continued during 12th Five Year Plan with new targets of additional production of food grains of 25 million tons of food grains comprising of 10 million tons rice, 8 million tons of wheat, 4 million tons of pulses and 3 million tons of coarse cereals by the end of 12th Five Year Plan.
  • The National Food Security Mission (NFSM) during the 12th Five Year Plan will have five components
  1. NFSM- Rice;
  2. NFSM-Wheat;
  3. NFSM-Pulses,
  4. NFSM-Coarse cereals and
  5. NFSM-Commercial Crops.

Area Coverage under NFSM from 2016-17 onwards:

  • From 2016-17, NFSM is implemented in 638 districts of 29 states.
  • NFSM-Rice is being implemented in 194 districts of 25 states.
  • NFSM-Wheat is being implemented in 126 districts of 11 states.
  • NFSM-Pulses is being implemented in 638 districts of 29 states
  • An NFSM-Coarse cereal is being implemented in 265 districts of 28 states.

Sikkim Food Security and Related Department work

  • Since independence, the Government of India has been implementing various schemes focusing on the poor for their upliftment. The government at the center as well as in the state has introduced various schemes whereby enabling the poor to at least two square meals in a day. Development would lose its meaning to a hungry man.
  • Mahatma Gandhi once said that “A STARVING MAN COULD ONLY UNDERSTAND GOD IN THE FORM OF BREAD”.

The Food & Civil Supplies & Consumer Affairs Department of Government of Sikkim

  • The Food & Civil Supplies & Consumer Affairs Department is entrusted with the task of implementing the Public Distribution System that envisages providing quality food grains, at subsidized rates and to ensure equitable distribution. The department has the dual duty of procuring and distributing food grains and petroleum products as well as monitoring and enforcing regulatory orders of the government.

Functions the Food & Civil Supplies & Consumer Affairs Department of Government of Sikkim

The main functions of Food & Civil Supplies & Consumer Affairs Department are:

  1. Procurement of food-grains covered under Targeted Public Distribution System (TPDS) from Food Corporation of India as per allotment.
  2. Transportation, storage and distribution of food-grains and other essential commodities in the state through a chain of Govt. Food Grain Godowns, Identified Fair Price Shops/Retail Shops, MPCS and Consumer Co-operative Societies (CCS).
  3. Ensure regular availability of food grains and other essential food commodities.
  4. Provide ration cards to the residents of the state.

ESSENTIAL COMMODITIES COVERED UNDER TPDS of SIKKIM

  1. Rice and Sugar -Being made available directly to the consumers all over the state through Govt. Food Grains godowns /Fair Price Shops/MPCS.CSS and through Ration Cards
  2. Wheat and Iodized Salt -APL category Whole Meal Atta and Iodized salt is being made available with the assistance of  Nominees and Agents appointed by the State Govt. through Fair Price and other shops.
  3. Blue Dyed Kerosene (SK Oil)Procured by  Dealers appointed by  Oil Companies , is made available for the consumption of general consumers by the Department  through identified Fair Price and other authorized retail shops.

Sikkim Government Major Initiative for food Security and Welfare of People of Sikkim

Mukhya Mantri Antodaya Annadan Yojana of Sikkim Govt:

  • The poorest of the poor from the 43,428 BPL families earlier identified were further identified for the Antodaya Annadan Yojana Scheme.
  • The 9914 beneficiaries under this scheme are entitled to 35 kgs of rice @3 /- per kg per month.
  • The State Government however rechristened the name of the Scheme to Mukhya Mantri Antodaya AnnadanYojana from 23rd August 2003 and 9914 Families are provided 35 kgs of rice free of cost, 347 MTs of rice is distributed under this scheme to the beneficiary families.

Expanded Antodaya Annadan Yojana of Sikkim Govt:  

  • The Government of India allocates 578 MTs of rice under the Antodaya Anna Yojana out of which 347 MTs of rice is distributed under the MMAAY scheme, and the remaining 231 MTs of rice is distributed to 6600 families under this scheme.
  • The beneficiaries are issued 35 kgs of rice @3/- per kg per month.

Annapurna Scheme of Sikkim Govt:

  • Under this scheme helpless aged people above the age of 65 years who have no one to support them and are eligible for National Old Age Pension but have not received them are provided with 10 kgs of rice free of cost.
  • The beneficiaries of this scheme have been provided rice from April 2000.
  • A total of 2500 beneficiaries are availing rice under this scheme.
  • A separate and distinct Ration Card has been provided to the beneficiaries free of cost

Whole Wheat of Sikkim Govt:

  • The Government of India allocates 245 MTs of whole wheat to the State.
  • For the convenience of the public it is ground into whole meal atta and distributed to ration card holders at the scale of 1 kg per individual @8.92 per kg per month through Fair Price Shops and other designated shops.
  • The State also received 1145 MT of wheat as special adhoc allotment during the year. This was sold at the rate of 12/- per kg/ per person.

Levy Sugar of Sikkim Govt:

  • The State of Sikkim is allotted 391 MTs of Levy Sugar per month.
  • Consequent upon the inability of supplying levy sugar by the Food Corporation of India from their depots in the State, the State lifts the allotted quota by engaging an agent directly from various Sugar Mills, of Uttar Pradesh.
  • The sugar is transported by road to Siliguri and further transported to different Food Godowns in the State.
  • The retail sale price of levy sugar has been fix at 25.40 per kg inclusive of transportation cost. Effort is being made by the Department to avail subsidy under “Price Equalization Fund” to enable the Government for distributing levy sugar at a lower price.

Kerosene Oil of Sikkim Govt:

  • Sikkim is allotted 546 KL of Kerosene Oil per month.
  • This is issued through Fair Price Shops/Ration Cards at a scale of 1.25 litres per individual in rural areas and 1 litre in the urban areas.

Ration Cards of Sikkim Govt:

  • Apart from the distinct family ration cards for BPL families the department has issued 4, 30,547 individual APL ration cards with digital computerized photos imprinted on it.
  • An individual above the age of five years is entitled to a ration card on production of documentary proof that he/she is a local resident.
  • Effort is being made to issue new biometric ration cards to weed out bogus/duplicate ration cards.

Fair Price Shops of Sikkim Govt:

  • There are 1420 approved Fair Price Shops including Co-operative Societies all over the State. All the Fair Price Shops are registered with the Department.
  • The Fair Price Shops are required to deposit a sum of 5000/- (five thousand) as security deposit which is returned if the Fair Price Shop wants to surrender their licence.
  • The District wise break up of Fair Price Shops is as under:-
  • South 420 North 74 West 336 East 590 Total 1420

 

Sikkim Public Finance and fiscal Policy

by

Sikkim Public Finance and fiscal Policy

Basic Understanding of Public Finance of Sikkim

Public finance as a concept may be understood on two levels –

  1. as a practical activity of all components of public administration and
  2. As a theoretical area.
  • The term “public finance“ may be defined as the identification of specific financial relationships and functions running between public administration bodies and institutions (i.e. public sector entities – the state) as one party and in mutual interaction with other entities of the economic system as the other party (i.e. private entities – households and companies).Sikkim Public Finance and fiscal Policy
  • These relationships and functions may be considered special as they include:
  1. Procuring public goods (production and provision);
  2. arranging and funding various transfers (particularly in the social area);
  3. Directing entities existing in the economy towards socially desirable behaviours; for instance through taxes, penalties, subsidies and other stimuli and charges.
  • In order to arrange the funding of the above-mentioned areas, there is a fiscal system (public budgeting system) whose aim is to collect the required amount of public revenue. Public revenue serves, at various levels of public budgets (governmental, regional and local), to fund public expenditures.
  • Public expenditures, public revenue and particularly taxes may be considered to be the fundamental elements of public finance. Important terms derived from these three elements include deficit, public debt, budgetary policy and fiscal policy.
  • The development of public finance is connected with economic mechanisms that should ideally lead to the effective and fair allocation of limited resources.

Public Finance – Causes of Development Aspects of Sikkim

  • The reason for developing public funding is the state intention to soften the drawbacks resulting from economic decisions made by individual entities (households and companies). It uses fiscal tools (public revenue and expenditure) to accomplish this.
  • Certain behaviour is classified as the “quasi-fiscal funding principle”, where publiclaw goods are funded from off-budgetary resources (e.g. the public-law television in the Czech Republic is funded from television licence fees).
  • Another important term that relates to public finance, and that is also a strong argument for its development, is market failure.
  • The market system follows supply and demand through the price mechanism. It is a system that has developed itself, and that has strong ties with the interactions between people and companies.
  • All these entities strive to maximize their benefit (welfare). The greatest benefit is strongly interconnected with reaching the economic optimum condition.
  • A system that reaches the optimum is considered, in the neoclassical economics concept, to be efficient, fair and stable.
  • The ideal condition is called the Pareto optimum. This exists in an economy when none of the involved entities can improve its position without worsening another entity’s position. If any of the entities intends to improve its position, it is possible for it to do so only to the detriment of another entity. The existence of perfect competition is a necessary requirement for reaching the optimum.
  • The three above-mentioned elements (efficiency, stability and fairness) are connected with microeconomics from the viewpoint of efficiency, connected with macroeconomics from the viewpoint of stability, and connected with sciences outside economics from the viewpoint of fairness. The perception of fairness is investigated by other social sciences, and is closely linked to ethics, etc.
  • If no conditions exist for reaching a market-efficient solution, or the conditions are simply violated for any reason, market failure will ensue.
  • It consists of the following:
  1. The allocation of resources is not efficient,
  2. The economy in the area of macroeconomics indicators oscillates around the desired values and
  3. The distribution of wealth and income may diverge from the consensus on fairness.
  • It is then up to the state to perform its fiscal function (the public finance function) in those three areas in order to preferably eliminate or at least reduce market failure. Specifically, those are microeconomic failures from the allocation function perspective, macroeconomic failures from the stabilization function perspective, and the redistribution function then falls into the area of market failure caused by outside economies.
  • If the conditions for perfect competition are not met, a malfunction in the price mechanism will arise, which disturbs the allocation mechanism. Some failures can be eliminated without public finance intervention through auto-regulation (the internalization of externalities). However, others are part of the government’s allocation function and its fiscal tools (taxes and governmental purchases or transfers).
  • Macroeconomic failure is indicated by instability in the economic system that usually suffers from cyclical inflation, a high rate of unemployment, low or even negative growth of production or problems in the foreign trade balance, etc.
  • The above-mentioned macroeconomic cases of instability are why governments perform the state stabilization functions (stabilization fiscal functions).
  • The state uses several tools to perform the stabilization function. The basic classification is a division into monetary and fiscal tools. The monetary tools include open market operations, the setting of basic interest rates, determining the level of mandatory minimum reserves, etc. Fiscal tools may include public expenditure, public revenue and ways of funding deficits.
  • The causes of market failure outside the economy relate to reaching fairness in society through the distribution of wealth and income. With the distribution of wealth, the market does not practically perceive fairness. In this case, the state performs a redistributive role with 5h3 principles of solidarity, social conscience, charity, etc. based on the social consensus.
  • The state performs the redistribution function through two basic categories of tools. The first includes revenue (tax) and the other expenditures (transfers, grants and subsidies).
  1. First, a tax transfer mechanism may be implemented through a combination of progressive taxation of high incomes and transfers (subsidies) in favour of low income households.
  2. Secondly, this can occur through the taxation of luxury goods combined with subsidies on goods for the low-income population.

Fiscal Policy Meaning

  • Arthur Smithies defines fiscal policy as “a policy under which the government uses its expenditure and revenue programmes to produce desirable effects and avoid undesirable effects on the national income, production and employment.”
  • Though the ultimate aim of fiscal policy in the long-run stabilisation of the economy, yet it can be achieved by moderating short-run economic fluctuations.
  • In this context, Otto Eckstein defines fiscal policy as “changes in taxes and expenditures which aim at short-run goals of full employment and price-level stability.

Objective of Fiscal Policy

  1. To maintain and achieve full employment.
  2. To stabilise the price level.
  3. To stabilise the growth rate of the economy
  4. To maintain equilibrium in the balance of payments.
  5. To promote the economic development of underdeveloped countries

Revenue Receipt Aspects of Sikkim

  • Tax Revenue Comprises taxes collected and retained by the State and State’s share of union taxes under Article 280(3) of the Constitution.
  • Non-Tax Revenue Includes interest receipts, dividends, profits etc. Grants in Aid and Contributions
  • Grants-in-aid represent central assistance to the State Government from the Union Government. Includes ‘External Grant Assistance’ and ‘Aid, Material & Equipment’ received from Foreign Governments and channelised through the Union Government. In turn, the State Government also gives Grants-in-aid to Panchayati Raj Institutions, Autonomous Bodies etc.

 

Expenditure Aspects of Sikkim

  • Expenditure is classified as Revenue Expenditure (which is used to meet the day-to-day running of the Government), and Capital Expenditure (which is used to create permanent assets, or to enhance the utility of such assets or to reduce permanent liabilities). Expenditure is further classified under Plan and Non-plan across different services viz., General services, Social services and Economic Services.
  1. General Services Includes Justice, Police, Jail, PWD, Pension etc.
  2. Social Services Includes Education, Health & Family Welfare, Water Supply , Welfare of SC-ST etc.
  3. Economic Services Includes Agriculture, Rural Development, Irrigation, Cooperation, Energy, Industries, Transport etc.

Medium Term Fiscal Plan for Sikkim: 2016-17

Introduction – Fiscal Policy Overview

  • The fiscal year 2016-17 is the second year of the award period of the 14th Finance Commission (FFC). The fiscal stress faced by the State in the year 2015-16 persisted in 2016-17 as well.
  • The fiscal challenges faced by the State necessitated modifications in the financing pattern based on the changes in resource transfers by the Central Government.
  • The share of Sikkim in the divisible pool of Central taxes has been raised to 0.367 per cent as compared to the share of 0.239 recommended by the 13th FC.
  • The increase in State’s and rise in the divisible pool of Central taxes from 32 to 42 percent due to the recommendations of the FFC has resulted in higher tax devolution to the State. However, rise in tax devolution subsumed many grants to the State and overall Central transfer was declined last year.
  • However, the State Government is committed to improve the provision of the public services and protect the spending on priority sectors while being prudent in fiscal management.
  • The Sikkim Fiscal Responsibility and Budget Management Act of 2010 (FRBM Act) provides the benchmark for fiscal management in the State.
  • The FRBM Act was enacted in the State with the objective of providing fiscal stability and conducting the fiscal policy in a sustainable manner to reduce the deficit and stabilize the debt burden.
  • It is expected that a rule based fiscal policy will establish long run fiscal sustainability improving the credibility of the Government policy and focus on spending to build social and physical infrastructure.
  • Given that the State has a limited base to generate resources internally and the provision of public services in a difficult hilly terrain is costly, the Government needs to calibrate it fiscal policy and spending pattern with a restraint provided through the fiscal rules.
  • The State Government, over the years, managed to adhere to the fiscal targets, while adopting a development oriented fiscal policy. The overall fiscal management in terms of budget decisions and implementation has remained within the boundary set in the fiscal rules.
  • The fiscal adjustment path for Sikkim recommended by the Thirteenth Finance Commission (TFC) with targeted fiscal deficit to ensure sustainable level of debt ended at 2014-15.
  • The FRBM Act of the State took into account the recommendations made by the 14th Finance Commission starting from the fiscal year 2015-16.The FFC recommended certain changes in the fiscal consolidation process to provide flexibility in the fiscal management of the State.
  • The State Government has brought amendments this fiscal to the State FRBM Act reflecting these recommendations.
  • The development oriented fiscal management over the years helped the State Government achieving socio-economic development and an inclusive growth process. Creating an enabling environment for different sections of the society, different tribal groups, women, and young people to participate in economic activities and contribute to the development of the State has remained as major objectives of the Government

Achievement of social sector commitments

  • Achievement of social sector commitments constitutes an important element of resource allocation decisions in the context of rule based fiscal policy that restricts incurring deficit and borrowing to a sustainable level. The Gross State Domestic Product (GSDP) at constant prices recorded a healthy growth rate of 7.88 percent in 2013-14.
  • The per capita income of the state, which was Rs.30727 in 2004-05, has increased substantially to Rs.196144 in 2016-17 at current prices. The major socioeconomic indicators for the State show commendable improvement.
  • The poverty ratio has declined to 8.19 per cent as compared to all India average of 21.92 per cent in 2011-12. The literacy rate at 81.40 per cent in 2011-12 is significant achievement. The IMR has gone down to 24 per 1000 in 2011 as compared to the all India average of 44.

Macroeconomic Outlook of Sikkim

  • The CSO has not updated the GSDP data of Sikkim for the year 2014-15. For all projection purposes, the method suggested by the FFC has been adopted to update the GSDP. The State GSDP, during 2012-13 and 2013-14, grew consistently at a reasonable rate of 7.6 and 7.9 per cent respectively.
  • While the service sector dominated the State income during 2005-06 to 2008-09, the share of Industry sector started increasing since 2009-10 and in 2013-14 the service sector constituted about 60.6 per cent of the total GSDP.
  • The relative share of industry sector has increased mostly driven by manufacturing, construction and power sectors. The inter-sectoral composition of GSDP since 2004-05 shows that the service sector, which accounted for half of the State GSDP till 2008-09, has declined to about 30 per cent in 2013-14.
  • The relative share of agriculture sector, which comprises of agriculture, forestry and fishing, has been declining over the years. The share of agriculture sector has come down from about 14 per cent in 2008-09 to 9.5 per cent in 2013-14.
  • The manufacturing and construction sectors remained as major contributors to the growth of the State economy. The year 2009-10 marks a clear shift in the growth path of the GSDP as the growth rate in this year jumped to a high of 73.6 per cent (89.9 per cent in current prices).
  • The impressive growth of power sector was basically driven by generation of hydroelectricity in newly commissioned power projects.
  • The manufacturing sector showed very high growth due to higher production in pharmaceutical industries and strengthening of small-scale industries. The manufacturing sector constitutes about one third of the State GSDP in 2013-14.
  • The initial burst in the growth of power and manufacturing sectors has stabilized in recent years. However, this established a strong base for the GSDP in Sikkim.

 

Fiscal Profile of the State

The Changing Fiscal Architecture and Its Impact on Sikkim

  • The budget for the year 2016-17 was the second budget after the FFC gave its recommendations on devolution of resources to the States. Despite the rise in share of Sikkim in tax devolution, aggregate transfers to the State declined in 2015-16 relative to GSDP due to sharp decline in grants.
  • Based on the tax devolution share for Sikkim and grants recommended by the FFC, the State received less central transfers in 2015- 16 as compared to 2014-15. The loss of assured source of block grants has created fiscal stress for the State and it seems unlikely that the increased tax devolution would compensate for this.
  • The FFC increased tax devolution to the State from 32 per cent to 42 per cent to provide higher flexibility in the use of enhanced level of untied fund.
  • As the FFC relied on tax devolution to cover the assessed revenue expenditure needs of the States, it took a holistic view of the revenue expenditure needs of States without Plan and Non-Plan distinction.
  • The FFC departed from past practice by not awarding specificpurpose grants. These grants, according to the Commission, were small to make any impact and crate confusion where large Plan schemes already exist, and were left to the Centre and the states acting cooperatively for those needs. The only grants awarded by the Commission were disaster relief grants and grants for local bodies.
  • The Commission was required by their terms of reference to recommend grants for these two purposes. The commission steered clear of both the Plan/Non-Plan distinction and that between special-category and other states.
  • Consequent upon the enhancement of share of the states in the central divisible pool from the current 32 percent to 42 percent which is the biggest ever increase in vertical tax devolution, Central Assistance to State Plan has been restructured.
  • The Central Government has discontinued the normal central assistance (NCA), special plan assistance (SPA), special central assistance (SCA), and the additional central assistance (ACA).
  • The Central Government also delinked eight centrally sponsored schemes (CSS) from funding and brought about substantial changes in the funding pattern of some other schemes.
  • The higher growth rate assumed by the FFC resulted in higher assessed revenue of the State during the award period of the Commission.
  • The own tax revenue projected for 2015-16 by the Commission is Rs 876.00 crore (calculation is based on GSDP of Rs 20634 crore), which rises to Rs.3039 crores in the year 2019-20.
  • Higher tax projection by the Commission reduced the pre-devolution revenue deficit gap for the State during the award period. The FFC projected revenue receipts seems to be unachievable.
  • The FFC transfer to the State also depends on the resource mobilization by the Central Government. While the FFC recommended Rs.2129 crores as share in Central Taxes to Sikkim, the Union budget for 2015-16 provided Rs.1929 crores only.
  • The actual flow however, was much less at Rs.1870 crores. This implies a gap of Rs.259 crores, which is expected to grow in the future years unless the the Central taxes increases considerably.
  • Decline in Central Grants and the gap in actual flow of tax devolution to that of the budget projection makes it very difficult to provide funds to the infrastructure projects started earlier based on the fund flow mechanism existing under the then Planning Commission and the Finance Commission.

Expenditure Profile

  • The Government of Sikkim has successfully controlled the revenue expenditure as percentage to GSDP. This has helped the State to increase the revenue surplus and expand the capital expenditure.
  • The priority sectors in social and economic services were traditionally given emphasis in resource allocation. The State Government has initiated several schemes in education and health to improve overall social and human infrastructure in the State.
  • The revenue expenditure, which was at 29.8 per cent relative to GSDP in 2009-10, was compressed to 23.12 per cent in 2014-15 and was budgeted at 23 percent in 2016-17. While the level of expenditure on social and economic services was protected in 2015-16 as compared to the previous year, the level of spending relative to GSDP projected for the year 2016-17 was low.
  • The expenditure compression in 2016-17 was due to lower availability of resources.

Outstanding Debt and Government Guarantee

  • Maintaining the debt burden of the State at sustainable level remains one of the major objectives of the fiscal management of the State as reflected in the FRBM Act.
  • The TFC in their revised fiscal roadmap have worked out the yearly outstanding debt burden for all the states aligning with the fiscal path.
  • The debt-GSDP ratio in the State has been reduced considerably, which is projected to be 23 per cent in 201617 BE.
  • The decline in the average cost of debt of the state because of the debt restructuring formula of the Twelfth Finance Commission has helped to lowering the debt burden.
  • Decline in the average cost of debt will result in reduction in the volume of interest payments and availability of higher fiscal space for the state government.
  • The interest payment has declined from 2.5 per cent in 2009-10 relative to GSDP to 1.6 per cent in 2016-17 (BE).

Medium Term Fiscal Plan: 2016-17 to 2018-19

Fiscal Indicators

  • The fiscal outcomes in the form of indicators like fiscal deficit, revenue deficit, and outstanding liabilities for previous year, current year, ensuing budget year and two outward years are presented.
  • The fiscal outcomes of the year 2014-15, for which audited figures are available, show that the State Government has adhered to the fiscal targets under the Act. In the year 2015-16, the Government took the benefit of flexibility provided by the FFC to raise the fiscal deficit to 3.25 percent to GSDP.
  • However, due to slippage in revenue receipts, the fiscal deficit has increased to 3.31 percent. The budget projections of the year 2016-17, however, show that the fiscal deficit has been contained at 3 percent of the GSDP. The Government managed to generate revenue surplus all along.
  • The projections for the budget year, 2016-17, and for two outward years, which give a medium term perspective to the fiscal stance, is aligned with the FRBM Act. The MTFP from 2016-17 to 2018-19 conforms to the recommendations of the FFC to anchor the fiscal deficit to 3 per cent of GSDP.
  • The MTFP 2016-17 presents the outlook of the fiscal management of the State Government in the medium term. The detailed projection of fiscal variables show that the revenue account surplus has been maintained during the MTFP period and the fiscal deficit has been stabilized at 3 per cent relative to the GSDP.
  • Despite reducing the revenue expenditure from 23 percent relative to GSDP to about 22.3 percent, the revenue surplus could not be increased due to low growth of revenues relative to the GSDP.
  • While GSDP is assumed to grow at 17.69 percent, the total revenue receipt grow at about 16 percent. The loss of block grants has pulled down the aggregate revenue receipts.
  • In nominal terms the revenue surplus increases from Rs.260.51 croers in 2016-17 (BE) to Rs.359.81 crores in 2018-19. Despite rise in fiscal deficit in nominal terms, it remains at 3 percent of GSDP, the mandatory requirement under the FRBM Act. The outstanding liabilities declines from 23.18 percent in 2016-17 BE to 22.29 percent in 2018-19.
  • As indicated, due to higher growth of GSDP, the fiscal variable in the medium term show a lower value. However, there has been substantial growth in revenue receipts and allocations to various sectors in nominal terms. While revenue receipts increases from Rs.4885 crores to Rs.6580 crores in the medium term, the revenue expenditure rises from Rs.4625 crores to Rs.6221 crores. The growth of revenue expenditure remains below the growth revenues.
  • The provision for capital outlay has increased from Rs.847 crores to Rs.1178 croers during MTFP period. Relative to GSDP, the capital outlay has shown an increase in the medium term.
  • Despite pressure on revenue receipts and competing demands, the focus on investments in infrastructure will remain a key factor in fiscal policy of the Government.

Summary Assessment

  • The State of Sikkim continues to face fiscal stress for the second year in a row after the fiscal architecture involving the fiscal federal arrangements have changed following the FFC recommendations.
  • As the Central transfers constitute a large portion of the State’s budget, the loss of some of assured source of revenue from plan grants has created difficulties in resource allocation in the State.
  • Although, the fiscal indicators show a declining trend due to high growth of GSDP, the nominal numbers show growth in revenues and resource allocation. The growth in resource allocation, particularly in the priority sectors in social and economic series and capital outlay has been restrained.
  • This has added increased responsibility on the State Government to generate higher revenue and continue with the traditional policy of emphasizing social and infrastructure sectors.
  • Despite the pressure on resources, the MTFP indicates a stable and growth oriented fiscal policy for Sikkim. The rise in production of electricity and growth of the manufacturing sector influenced the economic growth of the State in recent years.
  • The fiscal policy has to create an enabling environment for further growth and socioeconomic progress.
  • The resource allocation in the medium term focuses on enhancing the capital expenditure and social and economic sector spending. The economy needs better infrastructure and human development to make progress. The State Government has initiated several schemes in the social and economic sectors in recent years.
  • Despite the problem of cost disability, the State is committed to improving the service delivery spanning over the social and economic sector. The MTFP safeguards the fiscal consolidation process and provides adequate resources to existing schemes in priority areas.
  • The FFC recommended anchoring fiscal deficit to 3 per cent of the GSDP. The MTFP continues with the fiscal target set for fiscal deficit at 3 per cent. As debt stock in the State relative to the GSDP remains low, the debt-GSDP target remains stabilized. While projecting State taxes, the MTFP assumed higher buoyancy to augment resources, which will be achievable in the medium term.
  • The modernization of tax administration and efforts to improve the tax base is expected to improve the revenue receipts. It was observed that there has been some uncertainty in the flow of share in Central taxes. The tax devolution to the State varies depending upon the collection of Central taxes as the Finance Commission recommends a share in the divisible pool.
  • In the year 2015-16, against a budgeted amount of Rs.1924 crores, which was also less than what the FFC projected, the transfer to the State was only Rs.1870 crores. This level unpredictability affects State finances adversely.
  • The expenditure side restructuring in the MTFP was based on the realties regarding the resource availability and priorities expressed Government’s policies, and new schemes announced in the budget.
  • The MTFP protected the capital outlay relative to the GSDP and raised it marginally during the MTFP period. The rise in nominal terms is substantial. The rise in the capital expenditure will be instrumental in strengthening the infrastructure base in the State.
  • The State Government will be able to enhance the level of capital expenditure with the improvement in resource position.
  • What is important is to develop a policy to focus more on productive capital expenditure. The debt burden of the State remains below the limit suggested by the FFC to gain from the flexibility clause regarding the fiscal deficit.
  • The State Government has amended its FRBM Act in 2016-17 to avail the facility of increasing the borrowing limit and consequently the fiscal deficit by 0.25 present separately based on the FFC recommendations.
  • This will further help in maintaining the fiscal discipline and stability, adequate resource allocation to social and economic sector and strengthening infrastructure base.
The highlights of the Budget for the year 2017-18 with a summarized account of the receipts and disbursements incorporated in the budget.
 

A

  

RECEIPTS

  

AMOUNT (in crore)
 

1

  

Tax Revenue

  

669.51
2 Non Tax Revenue 426.46
 

3

  

State’s Share of Central Taxes

  

2477.78
4 Grant in Aid 1752.56
5 Gross Borrowings 881.60
6 Recoveries of Loans and Advances 0.80
7 Net Public Accounts 13.10
A Total Receipts 6221.81
B EXPENDITURE (net)
1 Revenue Expenditure 4613.47
2 Capital Expenditure 1608.35
 

B

  

Total Expenditure

  

6221.82

 

Sikkim Human Development Index

by

Sikkim Human Development Index

The practice of human development calls for a three-pronged strategy:

Expand opportunities in Sikkim

  • In the human development framework, an equitable expansion of opportunities economic, social, political and cultural is regarded as being essential for ending human poverty.
  • A focus on expanding opportunities for people can ensure that progress can combine growth with inclusion, and social justice with equity.
  • Human poverty can be fundamentally traced to inadequacies and inequalities in the distribution of opportunities, between women and men, across regions, between rural and urban areas, and within communities.

Enhance security in Sikkim

  • Human security is more than the absence of violent conflict. For most people, a feeling of insecurity arises from worries about everyday life.
  • For them, security symbolizes protection from the threat of disease, hunger, unemployment, crime, social conflict, political repression and environmental hazards.
  • Human security complements human development by addressing ‘downside risks’ that threaten survival, healthy life, livelihoods and the dignity of human beings.
  • Promoting human security calls for (i) protection against downside risks—shielding people from acute threats and (ii) empowerment of people to take charge of their own lives.

Promote sustainability in Sikkim

  • Sustainability is a matter of distributional equity—of sharing development opportunities between present and future generations.
  • The strongest argument for protecting the environment today is the ethical need to guarantee to future generations opportunities similar to the ones previous generations have enjoyed.
  • This demands guaranteeing both intra-generational and inter-generational equity.
  • The purpose of sustainable development, therefore, is to create an environment in which all people can expand their capabilities, and opportunities can be enlarged for both present and future generations

Human Development Aspects in Sikkim

  • Human development in Sikkim is a process of enlarging people’s choices. But human development is also the objective, so it is both a process and an outcome.
  • Human development implies that people must influence the processes that shape their lives. In all this, economic growth is an important means to human development, but not the end.
  • Human development is the development of the people through building human capabilities, by the people through active participation in the processes that shape their lives and for the people by improving their lives.
  • It is broader than other approaches, such as the human resource approach, the basic needs approach and the human welfare approach.
  • The composite Human Development Index (HDI) integrates three basic dimensions of human development. Life expectancy at birth reflects the ability to lead a long and healthy life. Mean years of schooling and expected years of schooling reflect the ability to acquire knowledge. And gross national income per capita reflects the ability to achieve a decent standard of living
  • To measure human development more comprehensively, the Human Development Report also presents four other composite indices.
  • The Inequality-adjusted HDI discounts the HDI according to the extent of inequality. The Gender Development Index compares female and male HDI values.
  • The Gender Inequality Index highlights women’s empowerment. And the Multidimensional Poverty Index measures nonincome dimensions of poverty

Human development—a people-centred approach in Sikkim

  • Human development is about acquiring more capabilities and enjoying more opportunities to use those capabilities. With more capabilities and opportunities, people have more choices, and expanding choices is at the core of the human development approach. But human development is also a process.
  • Anchored in human rights, it is linked to human security. And its ultimate objective is to enlarge human freedoms. Human development is development of the people through the building of human resources, for the people through the translation of development benefits in their lives and by the people through active participation in the processes that influence and shape their lives.
  • Income is a means to human development but not an end in itself. The human development approach in the 1990 Human Development Report also introduced a composite index, the Human Development Index (HDI), for assessing achievements in the basic dimensions of human development. Those dimensions of human development are to lead a long and healthy life, measured by life expectancy at birth; to acquire knowledge, measured by mean years of schooling and expected years of schooling; and to achieve a decent standard of living, measured by gross national income per capita.

Life Expectancy at Birth in Sikkim

  • The indicator of life expectancy at birth is used to measure the realised achievement in the health dimension, that is, ‘to be able to live a long life’.
  • The life expectancy at birth denotes the number of years that a child can expect to live at the time of birth, given the agespecific mortality rates in the population.
  • The life expectancy, however, is an indicator of very long-term improvement in health.

Mean Years of Schooling in Sikkim

  • Mean Years of Schooling (MYS) is one of the two indicators used to measure educational achievement in HDRs by UNDP.
  • It replaced the literacy rate as an indicator under the education dimension in 2010. MYS indicates the average number of completed years of education of a country’s population.
  • Usually, MYS is estimated for populations aged 25 years and older, which is also the indicator used in the calculation of the HDI by UNDP

Expected Years of Schooling in Sikkim

  • EYS is a measure of the number of years of schooling a child at the start of his or her education is expected to receive, if current rates of enrolment are maintained throughout the child’s life.

Income Per Capita

  • Income per capita is considered as an ‘indirect’ indicator of human development. The first HDR of UNDP (1990) observes that an indicator of ‘command over resources needed for a decent living’ requires data on access to land, credit, income and other sources.
  • In 2010, instead of GDP per capita, Gross National Income (GNI) per capita is taken as the indicator.
  • For allowing cross-country comparison, the GNI per capita of the countries was adjusted by Purchasing Power Parity (PPP) ratios.

 

Some Human Development Aspects in Sikkim

  • By 2009, over 85 per cent of children below two were fully immunized—the highest proportion across Indian states.
  • Institutional delivery rose to 81 per cent by 2011.
  • In 2005–06, Sikkim reported the lowest proportion of under-weight children (20 per cent). Only 3 per cent of children under three were severely under-weight—as against the national average of 19.5 per cent in 2005–06.
  • By 2011, Sikkim reported amongst the lowest percentage of population below the poverty line—8 per cent—across Indian states. In 2004–05, close to 170,000 people lived below the poverty line. By 2011, this number had come down to 51,000—a 70 per cent reduction in the number of poor.
  • Enrolment in primary and upper primary schooling is near universal, with net enrolment ratios being the highest in India.
  • Close to 93 per cent of households have electricity and 100 per cent have a latrine facility within the premises.
  • The sex ratio (number of females per 1,000 males) has improved from 875 in 2001 to 889 in 2011. The child sex ratio (0–6 years) for 2011 is higher at 944, which is also higher than the national average of 914.
  • Inequalities in the distribution of income and consumption have improved between 2004 and 2010. Sikkim registered the lowest Gini coefficient of urban consumption (0.186) across all Indian states in 2009–10.
  • The gap between male and female literacy rates in 2011 was 10 percentage points— 16 points less than in 2001. Sikkim ranks highest among the north-eastern states on its per capita health expenditure, Rs 1,507, which is higher than the all-India figure of Rs 1,201.
  • Sikkim is ranked fourth among all states of India on the Composite Educational Development Index for 2012–13—a significant jump from the 12th position in 2011–12

The Multidimensional Poverty Index (MPI) of Sikkim

  • The Multidimensional Poverty Index (MPI) identifies overlapping deprivations at the household level across the three dimensions of the HDI (living standards, health and education) and shows the average number of poor people and deprivations with which poor households contend.
  • The MPI for Indian states varies from a low of 0.051 in Kerala to a high of 0.479 in Bihar. Sikkim ranked eighth with an MPI value of 0.150.
  • The biggest contribution to this low MPI value has been improvements in health and nutrition.
  • Sikkim features as the ‘best’ in terms of the lowest levels of deprivation attributable to health and nutrition. Equally significant is the progress that Sikkim has made in providing improved sanitation

Income of People of Sikkim

  • In 2012–13, Sikkim reported a per capita income (net state domestic product) of Rs 142,625—the highest among the northeastern states, higher than all states and Union Territories with the exception of Chandigarh and Delhi, and more than double the all India average of Rs 68,757.
  • Between 2004–05 and 2011–12, Sikkim’s real per capita income more than doubled from Rs 26,690 to Rs 70,477.
  • In 2004–05, Sikkim ranked 15th; by 2011–12, Sikkim ranked among the top five states in terms of per capita income.
  • The growth performance of Indian states. Between 2004–05 and 2011–12, Sikkim’s real per capita income grew at an annual average rate of around 15 per cent the highest among Indian states and more than twice the national average of 6.7 per cent per annum.

Employment and jobs of the People of Sikkim

  • Of the total workers, 62 per cent continue to be engaged in agriculture, forestry and fishing. Another 13 per cent of the workers are employed in the secondary sector (mining, manufacturing, electricity, water supply and construction), with more than half of them being employed in construction.
  • The tertiary sector constitutes 26 per cent of the workers. According to the Census 2011, the number of total workers increased from 263,043 in 2001 to 308,138 in 2011 an increase of 17 per cent.
  • A majority (55 per cent) of this increase was in the category of marginal workers. The work participation rate has increased by almost 2 percentage points in the decade 2001–11. Also, among the marginal workers, about 30 per cent were found to be employed for almost three months.

Health Aspect of People of Sikkim

  • Sikkim reported an infant mortality rate of 24 per 1,000 live births in 2012— considerably lower than the national average of 42. Health care in Sikkim is provided almost entirely by the public sector.
  • The state has established a well-functioning primary health care system through a network of two Community Health Centres, 24 Primary Healthcare Centres and 146 sub-centres.
  • Health care is provided, among others, by 273 doctors and nine AYUSH practitioners.
  • This gives an adequate ratio of approximately one doctor per 2,500 population.
  • Except for the Sikkim-Manipal Central Referral Hospital, which provides secondary and tertiary care, there are very few private medical institutions.
  • The state had four district hospitals and 1,560 hospital beds in 2012 or 2.6 beds for 1,000 people. Fourteen PHCs out of 24 were without a medical officer in June 2012; most vacancies were in north and west districts.

Nutrition aspect of People of Sikkim

  • In 2005–06, close to 20 per cent of Sikkim’s children below 5 years were classified as being underweight the lowest in the country against a national figure of around 43 per cent.
  • According to the National Family Health Survey-3 (NFHS-3), only 10 per cent of children born in Sikkim were of low birth weight.
  • According to NFHS-3, four out of five women in Sikkim consume milk or curds at least once a week.

Literacy and education aspects in Sikkim

  • In 1951, Sikkim had an overall literacy rate of less than 7 per cent, with barely 11 per cent of men and 1 per cent of women who could read and write. By 2011, the literacy rate had increased to 82 per cent in 2011 with 87 per cent of men and 76 per cent of women who could read and write.
  • The most developed East district came on top with 85 per cent, followed by South district (82 per cent), West district (79 per cent) and North district (77 per cent). Sikkim has a strong network of 781 government schools, 421 private schools, 71 monastic schools, 25 local body schools, 11 Sanskrit schools and three Islamic schools.
  • The state is also experimenting with alternative and innovative models of education. Sikkim became the second state in India to sign a Memorandum of Understanding (MoU) with the Quality Council of India on 27 March 2011 for developing accreditation standards towards quality government schools.
  • Enrolment in primary and upper primary schooling is near universal, with net enrolment ratios being the highest in India.
  • The gender parity index for enrolment in primary classes (I to V) in Sikkim is 0.98 compared to the all-India figure of 0.94. The net enrolment rate (NER) in primary education in Sikkim is encouraging.
  • In 2007–08, 90 per cent children aged 6–10 years were enrolled in Class I–V. Only 10 states and Union Territories are ahead of Sikkim in this category.

Poverty aspect in Sikkim

  • Between 2004–05 and 2011–12, Sikkim recorded a sharp fall in the poverty level—next only to Goa.
  • Latest data released by the Planning Commission says that in Sikkim, the proportion of people below the poverty line (BPL) came down from 30.9 per cent in 2004–05 to 8.19 per cent in 2011–12 an average annual rate of decline of over 17 per cent.
  • The number of people living below poverty line in Sikkim has come down from 1.70 lakh in 2004–05 to 51,000 in 2011–12 and the proportion of the poor in the Himalayan state remains well below the national average.
  • Sikkim has also done well on the poverty gap ratio which reflects the extent to which average consumption of the poor falls below the established poverty line, indicating the depth of poverty.
  • In 2011–12, Sikkim reported a rural poverty gap ratio of 0.96 next only to Goa. In 2011–12, Sikkim reported the lowest urban poverty gap ratio 0.45. Between 2004–05 and 2011–12, the poverty gap ratios fell in both rural and urban Sikkim

Some Basic Fact about Sikkim regarding Human Development

  1. Per capita Income of Sikkim -48937 (2009-10)
  2. Monthly per capita Consumption Expenditure of Sikkim -738.52 (2004-05)
  3. Rural and Urban Monthly per capita Consumption Expenditure of Sikkim -688.53 & 1106.79

Workers Peasant and Tribal Movements in Sikkim

by

Workers Peasant and Tribal Movements in Sikkim

The Anti-dam Movement in Sikkim: Resurgence of Lepcha and Bhutia Identity at Helm

  • Sikkim is a small Himalayan State which is located in India’s north -east region.
  • Prior to its merger with India in 1975, Sikkim was under the Chogyal Dynasty formed in 1642 under the influence of Tibetan theocracy.
  • Today, it is primarily constituted by the Lepchas, Bhutias and the Nepalese ethnic group.
  • It also consists of people from the places like Bihar, Bengal, Haryana, Rajasthan, Uttar Pradesh and other places of India who are generally referred as “plainsmen” who migrated during the 1890s.
  • In recent years Sikkim has witnessed a boom in terms of number of hydel power projects being build here to an extent that it is almost close in acquiring the title for having highest dam density in the world.
  • This was part of the 50,000 MW Hydroelectric initiative launched by the Prime Minister of India in May, 2003.
  • But, the construction of power projects did not go all without opposition.
  • The resistance has come primarily from the Lepcha and Bhutia community in Sikkim in three distinct phases.
  • Though initially legitimized basing religion and culture, the movement as it progressed has been successful in revealing information and realities which may well serve in understanding and furthering the studies in development communication.

Resurgence of Bhutia and Lepcha Identity

  • One of the notable consequences of the anti-hydel protests in Sikkim over the years is it has bestowed the reassertion of Lepcha and Bhutia identity in Sikkim.
  • One peculiar character of all the anti-hydel protests in Sikkim is that all are primarily led and supported by the Lepcha and Bhutia community in Sikkim, thought there are some exceptions in the ongoing protest.
  • Sikkim is primarily constituted by the Lepchas, Bhutias and the Nepalese ethnic group.
  • It also consists of people from the places like Bihar, Bengal, Haryana, Rajasthan, Uttar Pradesh and other places of India who are generally referred as “plainsmen” who migrated during the 1890s.
  • Historically, the degree of social distance and discrimination among diverse ethnic groups was very strong, particularly between the Lepcha- Bhutia and Nepali community.
  • Ethnicity played a vital role during the formation of political parties in Sikkim, beginning from 1940’s. Political parties were chiefly constituted on ethnic lines.
  • They were many reasons contributing to these social gaps.
  • Initially, when the Chogyal regime recognised the status of the Subjects of Sikkim under Sikkim Subject Regulation 1961, the Nepalese who formed about 70 per cent of population in Sikkim and the plainsmen were excluded.
  • Earliest Nepalese settlers were later recognized and granted Sikkimese status, though the plainsmen had always been excluded.
  • For such reasons, there has always been hostility and differences among these ethnic groups. This hostility is primarily over the limited resource management in Sikkim.
  • The case of anti-hydel protest in Sikkim is an overt signal of such hostility.
  • However, over the years, particularly after the joining of Sikkim with the Indian Union in 1975, the antagonism between these ethnic groups to an extent was abbreviating, through various cross-cultural interactions, until the abrupt and haphazard endorsement of manifold hydro power plants in recent years.
  • This has propelled the Lepchas and the Bhutias to protest the construction of dams under various banners simultaneously is once again resuscitating and widening the waning differences between these ethnic groups.

Helen Lepcha Alias Sabitri Devi: Lone Freedom Fighter from the Lepcha Tribe

  • Helen Lepcha alias Sabitri Devi was one of the most famous Freedom fighters from the hills of Darjeeling and Sikkim.
  • Originally a resident of Kurseong town she traces her lineage to a small hamlet in the village of Sangmoo near Namchi in South Sikkim.
  • She is the only woman freedom fighter born in the state of Sikkim and even though she spent most of her life in hills of Darjeeling; Sikkim has come forward to name her as the daughter of their soil.
  • In the event of Major Durga Malla and Captain Ram Singh Thakuri taking precedence among the freedom fighters from Darjeeling hills, Smt. Sabitri Devi has been given due recognition in her birth state of Sikkim.
  • Born into a Lepcha family of Achung Lepcha, she was the third daughter among seven.
  • It is said she was born around 1902 and soon after her family moved from Sangmoo village to Kurseong.
  • Even today stand the Chorten she paid maintenance for annually and the pear tree she fondly remembered from her childhood in her homestead.

Sikkim: Ethnic struggle

  • Almost all issues in Sikkim originate from and end in its ethnic diversity.
  • Lepchas, the original inhabitants are today facing extinction; the Bhutias who ruled after them are also in a minority.
  • Nepalis, who immigrated in large numbers in the late 19th and the early 20th centuries, are now in an overwhelming majority and are clamouring for their right to rule.
  • Adding to the confusion is a large number of plainsmen, identified as “of Indian origin”. The tension and bitterness created by the ethnic struggle have cut across party lines.
  • The Central and state governments are committed to the abolition of the present “parity system” under which Lepchas and Bhutias who constitute only 20 per cent of the population have 15 seats reserved in the 32-member Assembly.
  • Nepalis – in 1975, of 133,000 voters 98,000 were Nepalis – also have a similar number of seats. This was done under a formula devised by the Chogyal to keep Nepali power in check. Nepalis find this regulation stifling under it since they cannot hope to dominate Sikkim’s politics.
  • Citizenship Problems: Sikkim will probably be the first region in the recent past, where the most debated issues in the elections will pertain to those of the elections itself.
  • After the merger of Sikkim with India, the Indian Government granted citizenship to all Sikkimese subjects listed by the former Chogyal’s administration.
  • But Nepalis who came to Sikkim after 1961 -when the Sikkim Subject Regulation came into force-were not made Sikkim subjects and hence were missed out in the Indian list as well. Ironically, the political movement of 1973 which had dethroned the Chogyal, Palden Thondup Namgyal, had the active backing of thousands of such Nepalis.
  • They are said to number about 50,000 and Nepali politicians are working hard for their inclusion on the election rolls.
  • Incongruity: An equally unfortunate case is that of people of Indian origin in Sikkim, who are estimated to number about 60,000. In the normal course, when a person changes his place of residence from one state to another no restriction is placed on his right to contest an election from his new state.
  • But in Sikkim, people of Indian origin-some have been staying since very long-who form over 20 per cent of the population are foreigners in their own country and do not retain the right to contest elections

Sikkim : Trade and Commerce

by

Sikkim : Trade and Commerce

Sikkim is one of the fastest growing states in India. The state has favorable agro-climatic conditions, which support agriculture, horticulture and forestry. As per the state budget 2016-17, Sikkim got certified as first fully organic state in India by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a compound annual growth rate (CAGR) of 19.44 per cent to US$ 2.75 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 19.11 per cent to US$ 2.33 billion.

The State Government has achieved remarkable progress in the core areas of agriculture, health, education and development in infrastructure. Today, Sikkim is the most talked-about state in the Country.

Sikkim has evolved as a progressive State with marked improvements in socio-economic indicators, despite facing the disadvantages of inadequate connectivity, high cost of infrastructure building and maintenance, difficulty in delivering services to dispersed populations in hilly areas.

People of Sikkim engage in different economic activities, prominent among which are Tourism, Industries, horticulture & agriculture etc. giving rise to a definite occupational structure. Major contributions to the economy are provided by sectors like Agriculture, Horticulture, Forest, Mining, Industries, Power, Tourism, Aqua Culture and  Livestock etc.

Agricultural economy

The state’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, oil seeds, pulses, spices, cereals barley, oranges, tea and cardamom.

Agriculture is vital to the progress of Sikkim as more than 64% of the population depends on it for their livelihoods. The Sikkim AGRISNET is an internet-based agriculture information centre to promote scientific agricultural methods and convert research into practice in the agricultural sector. Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. The surveyed arable land in Sikkim is 109,000 ha, of which only 9.5% is used, this provides a vast untapped potential for development. The state government is also laying emphasis on improving organic farming in the state.

Agriculture is the major economic activity and is practiced on terraced field that has been laboriously created from steep hillsides. There are in all 689 enterprises that have been identified, which are mostly concentrated in rural areas.

Sikkim is the largest producer of cardamom and also boasts to utilize largest area for its cultivation. Tea is exported to USSR & Germany. A coffee plantation has also been started at Majitar.

The  economy broadly depends on the agriculture which provides livelihood to the majority of population in the state. However, it’s progress remained limited due to difficult topography and other natural barriers. As a result all head sectors related to agriculture emerged, government is doing its best to improve the situation.

Horticulture

Horticulture also contributes to the economy of  Sikkim. Large Cardamom, ginger and turmeric are the principal crops while Mandarin orange, guava, mango, banana and so on are the principal fruits grown in the state. The department of Horticulture is deeply involved in motivating and providing technical guidance to local farmers. Sikkim is also a paradise for flowers. Gladioli, anthuriums, lilliums, primulas, rhododendrons, orchids as well as many other floral species thrive here. The state is home to an amazing 450 species of exotic orchids alone. There is immense potential for developing floriculture on a commercial basis here, and the department of Horticulture is making concerted efforts to turn this sector into an export-oriented industry.

Forest

Sikkim has rich bio diversity and thus provides economic activities. The total land area managed by and under administrative control of Forest Department is above 80% of the total geographical area of the state. The composition ranges from tropical Dry Deciduous Forests with Sal and its associates in the valleys of Teesta and Rangit to the Alpine Scrub and Grasslands in high altitudes. During the two last decades Forest Department has laid emphasis on development of fodder and fuel wood in the agriculture fallow lands of the villagers giving priority to plantation of broom grass for fodder and for economic up liftment of the villagers.

Aqua Culture

Pisiculture is an important area of economic activity particularly in the context of enabling the rural people. The state’s natural resources endowments with an extensive network of freshwater rivers, lakes and streams offers conditions which are conducive for development of inland fisheries where a variety of carps and trout’s can thrive. With a view to exploit these natural resources endowments.

Sericulture

Mulberry, muga, eri and  oak-tussar are cultivated in Sikkim. The Sericulture Directorate is responsible for development of sericulture in Sikkim. The sericulture potentiality of Sikkim state has been explored jointly by the State Department and Central Silk Board, through launching a flagship programme titled Catalytic Development Programme. Over the years with consorted efforts from the both ends (state and central governments), considerable success have been achieved by the state sericulture industry in generating employment. Raw silk production in the state increased from 0.20 metric tonnes in 2013-14 to 6.0 metric tonnes in 2015-16.

Livestock

Animal Husbandry provides an additional source of income to the people. Animal husbandry form an extremely important element in the effort to bring about substantial improvements in living standards. The overall area available for agriculture operations is limited to about 15% of the geographical area of the state and with the increasing population, per capita land availability has been consistently declining, it is therefore, essential, that supplementary sources of income should be developed in order to provide not only the much needed support to the rural families but also to make available in increasing quantity, protein rich food items such as milk, egg, and meat. Adequate number of livestock like cattle, buffaloes, pigs, sheep’s, goats, yaks and few other are reared in Sikkim. Yaks are reared in north eastern ranges bordering Tibet, Bhutan and western region bordering Nepal.

Industries and Mining

The Commerce and Industries Department of Sikkim is involved in promoting trade and industry in Sikkim. The Sikkim Industrial Development & Investment Corporation Limited (SIDICO) is the state-level institution engaged in promoting, financing and developing the tiny and small scale industries (SSI) sector in the state.

Brewing, distilling, tanning and watch making are the main industries located in the southern regions of Sikkim. A small mining industry exists in the state, extracting minerals such as copper, dolomite, talc, graphite, quartzite, coal, zinc and lead. Sikkim has identified Rangpo-Gangtok, Melli-Jorethang, Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with provision for giving land to investors on a lease basis.

The units that are engaged in the manufacturing sector are mainly dealing with pharmaceuticals, chemicals, liquors, foam mattresses, food products, iron rods, etc. Sikkim has identified agro-based industries, horticulture and floriculture, minor forest-based industries, animal husbandry and dairy products, tourism-related industries, IT including knowledge-based industries, precision oriented high value-low volume products, hydro-power, tea, education and hospitality as thrust sectors. The Information Technology (IT) Department, Government of Sikkim is in the process of setting up a state-of-the-art IT Park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong.

Pharmaceuticals

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low manufacturing and labor costs. Sikkim is home to 14 major pharma companies, which have significant investments in the state. The North-East Industrial and Investment Promotion Policy, 2007 and the pollution free atmosphere are highly beneficial for pharma investments in Sikkim. Some of the policy incentives are: 100% excise duty exemption on finished products. 100% income tax exemption. 30% capital investment subsidy on investments in plant and machinery.

The policy of framework in regard to industrialization in Sikkim has to be formulated keeping in mind the particular factors endowments that the state has the limitations in regard to resources, particularly, minerals and industrial raw materials as well as man power. The state is not so rich in mineral resources and apart from the deposits of copper, lead and zinc, no other viable and exploitable mineral deposits have so far been discovered. While on the other hand the state enjoys a tranquil climate, a dust free atmosphere and peaceful industrial entrepreneurial talent, has also to be taken note of. In regard to industrial development, a number of small and medium units have been promoted in the state. For example, The Sikkim Time Corporation (SITCO) and Government Institute of Handicraft and Handlooms.

Mining

The state of Sikkim is endowed with rich geological resources. The department of mines and geology has been responsible for exploration and establishment of mineral resources, with the object of developing commercially exploitable mineral resources. Moderate to fair amount of success has been achieved during the investigation carried out by different agencies in certain sectors namely dolomite, coal, quartzite, graphite, lime stone, silliminite, talc, mineral water, thermal springs, building stone and materials for porcelain.

Tourism

Tourism provides the main thrust to the economy. With the tranquil climate, the natural beauty and the fine cultural heritage of Sikkim, the growth of tourism has immense possibilities. There are large number of places of tourist attraction particularly the snow clad mountains, the lakes and unspoiled forest areas and valleys of flowers. The advantage of having very fine monasteries in Sikkim can also be taken to attract Buddhist tourists from countries like Japan and the South Eastern countries.

Sikkim was the first to promote the concept of eco-tourism, village tourism and home stay tourism in the country. This essential concept promoting man-nature affinity has been recognized as a new model of tourism. Today, Sikkim is already on the national and international tourism map.

Sikkim has been featured and ranked 17th in the New York Times “52 best places to go in 2017”. Similarly, Sikkim has also been featured as the best destination to visit in the world in 2014.

The Year 2017 has been declared as the Year of Sustainable Tourism for Development, an area of development in which Sikkim has already made considerable strides with eco-friendly tourism and the development of innovative initiatives such as Chaar Dham and Tathagatha Tsal. Additionally, Gangtok City has been recognized as the safest tourist destination in the country.

Keeping nature at the backdrop, the State Government proposes to promote tourism mainly through nature based tourism. Few activities which are proposed include, Rock Art Sculpture, Folk Healing Center and Yoga Sthan. In the niche Tourism Sector, facilities such as golf courses, water sports etc, are being proposed.

A priority has been given to create mega projects, one example of which is the Sky Walk at Bhaleydunga. The Ropeway to Bhaleydunga, currently under progress is expected to be completed in 2 years time. Today, Sikkim having been featured in leading International Journals and magazines, has become one of the most sought after destinations and caters to all types of tourists. Film tourism is also catching up fast with the support of the government, as many recent film shoots by popular Bollywood artistes in the state takes place.

Through sustainable forest management practices and massive afforestation drives, about 72.60 lakh saplings have been planted till date under the State Government’s flagship programmes such as Smritivan, State Green Mission, Ten Minutes to Earth and Paryavaran Mahotsav. The forest and tree cover of the State has increased by about 4% over the last two decades from 43.95% to 47.80%. The State Government has also banned the use and sale of disposable Styrofoam products, prohibited the burning of tyres, agricultural waste, use of packaged drinking water bottles, bursting of crackers in Sikkim which are first such prohibitions imposed in the entire world.

The declaration of the Khangchendzonga National Park as UNESCO’s World Heritage Site on 17th July, 2016 at Istanbul, Turkey, is a testimony to the tireless efforts of the government. The Khangchendzonga National Park has also been declared as one of the 100 top Green Destinations of the world for the second consecutive time. In addition to this, the State Government is also proposing to develop a world class Biodiversity Park and Ecotourism Centre at Tendong, South Sikkim.

The State Government has now prioritized the construction of a Ropeway from Pelling to Sangacholing Monastery in West Sikkim connecting the landmark statue of Lord Chenrezig, that is near completion, to Pelling. This project along with the Statue of Lord Chenrezig would be a great value addition to tourism in boosting tourism footfall in the State. The boost in the tourist footfall is very encouraging as Sikkim hosted over 8 lakhs tourists in 2016 alone.

Major initiatives taken by the government to promote economy of the state

The state government launched Sikkim AGRISNET, an internet-based agriculture information centre, to promote scientific agricultural methods and convert research into practice in the agricultural sector.

The Government of Sikkim has placed information technology high on its agenda. The budget allocation for information and broadcasting is expected to be US$ 0.96 million during 2015-16.

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low manufacturing and labour costs. Sikkim is home to 14 major pharma companies, which have significant investments in the state. These include Cipla, Sun Pharma, ZydusCadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharma and Unichem.

The Sikkim government has announced a technical collaboration with floriculturists from the Netherlands and Thailand to develop the state’s potential in floriculture and market cut flowers from the state globally.

The Department of Information Technology, Government of Sikkim is in the process of setting up an IT park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong. The IT Park will have state-of-the-art facilities that will offer a plug and play environment and cater to the specific needs of the information technology and business process outsourcing (BPO) segments.

In order to give a boost to handloom and handicrafts sector, the Government of Sikkim has been making several efforts, which include providing training to upgrade the quality and designs of the products; bringing expertise and professionals for their marketing and supply, etc.

The Sikkim Government plans to set up Tea Development Corporation of Sikkim, which would be the nodal agency for developing the tea Industry in Sikkim. It would work to expand the Temi tea estates in the state and acquire new gardens either wholly or partially owned by the government.

The Sikkim Manipal University (SMU), a partnership between the Government of Sikkim and Manipal Education and Medical Group (MEMG), provides technical, healthcare and science education. It is rated as one of the top universities in the country.

The State Government is very concerned with the youth populace and therefore, has laid special emphasis to skill the youth and to make them employable and self-dependent so that they can lead a life of self-respect and confidence. A separate Department of Skill Development & Entrepreneurship and Capacity Building therefore has been setup with its network of the State Institute of Capacity Building, Livelihood schools, Industrial Training Institutes, Kaushal Kendras and Incubation Centres for skilling the youth. These initiatives aim at creating opportunities for self-employment, for industrial wage employment, and community based employment as Social Entrepreneurs.

Till December 2016, a total number of 10,151 trainees have been trained in sectors such as Beauty & Wellness, Tourism & Hospitality, Apparel, Homestay, Driver cum Tour Guide, Primary Teacher Training etc. An Atal incubation centre has been approved by the Ministry of Skill Development in Assam Lingzey. Two more incubation projects for the distillation of lemon grass oil has been set up in Kerabari, South Sikkim, and Timberbong, West Sikkim, under the Rastriya Krishi Vikas Yojana.

Sikkim : Tax and Economic Reforms

by

Sikkim : Tax and Economic Reforms

The economic liberalization in India , initiated in 1991, with principles of Liberalization , Privatization and Globalization (LPG) of the country’s economic policies, with the goal of making the economy more market and service-oriented and expanding the role of private and foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment. Liberalization has been credited by its proponents for the high economic growth recorded by the country in the 1990s and 2000s. And it has positive impact on the state of Bihar as can be visibly seen from various sectors.

India’s GDP has increased thereafter and also  the GSDP of state has increased many folds.  Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) of Sikkim has expanded at a compound annual growth rate (CAGR) of 19.44 per cent to US$ 2.75 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 19.11 per cent to US$ 2.33 billion.

Agricultural Sector

The state’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, barley, oranges, tea and cardamom. Sikkim produces more cardamom than any other Indian state, and is home to the largest cultivated area of cardamom

Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. Sikkim is the top producer of large cardamom, contributing over 80 per cent to India’s total production.

As per the state budget 2016-17, Sikkim got certified as first fully organic state in India by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

Organic Farming

Sikkim has been transformed as the first Organic State of the country and the world by design and have opened unlimited opportunities in sectors like Agriculture, Horticulture and Animal Husbandry.

Industrial Sector

Industries plays an important part to the development of the state. State government has taken various measures to provide impetus to the growth of the economy.

There has been a drastic shift in the sectoral contribution from primary and tertiary to the secondary sector. The overall performance of the economy of the state during 2015-16 was encouraging. At a CAGR of 33.91%, the secondary sector witnessed the fastest growth among the three sectors during 2004-05 to 2015-16. It was driven by manufacturing, construction and electricity, gas & water supply. In 2015-16, the secondary sector contributed 67.73% to the state’s GSDP at current prices.

The state follows the North East Industrial Investment Promotion Policy, 2007, which provides several incentives and concessions for investment. Institutional support is provided through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Commerce and Industries Department.

The main industries like Brewing, distilling, tanning and watchmaking are located in the southern regions of Sikkim.

Tertiary sector

State government has implemented various policies to increase the growth rate of Tertiary sector. Various policies like IT Policy , Tourism Policy gives impetus for the growth of the services sector and hence development of economy. Industrial sector contributes majorly to the development, followed by the tertiary sector at 23.65% and primary sector at 8.62%. The tertiary sector grew at a CAGR of 15.23% between 2004-05 and 2015-16. The growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The primary sector grew at a CAGR of 15.55% between 2004-05 and 2015-16.

Tourism provides the main thrust to the economy. With the tranquil climate, the natural beauty and the fine cultural heritage of Sikkim, the growth of tourism has immense possibilities. There are large number of places of tourist attraction particularly the snow clad mountains, the lakes and unspoiled forest areas and valleys of flowers. The advantage of having very fine monasteries in Sikkim can also be taken to attract Buddhist tourists from countries like Japan and the South Eastern countries.

 

Total Receipts and Total Expenditure

For the fiscal year 2017-18, a gross expenditure of Rs. 6364.02 crores has been projected in the budget.

After taking into account recoveries amounting to Rs. 142.20 crores, the net expenditure comes to Rs. 6221.82 crores.

The fiscal deficit remains in adherence to the fiscal management targets set in the Sikkim Fiscal Responsibility and Budget Management Act, 2010, i.e. not more than 3% of GSDP. The contribution from total tax revenue is of the order of Rs. 669.51 crores and in the case of Non-Tax revenue, Rs. 426.46 crores.

The total gross expenditure includes allocations amounting to Rs. 81.76 crores under the dispensation of the North Eastern Council, Rs. 153.66 crores under Non Lapsable Pool of Central Resources, and Rs. 1326.76 crores under Centrally Sponsored Schemes.

In Union budget, the distinction between Plan and Non-Plan has been done away with from the year 2017-18 onwards. This has been done as a measure towards bringing about major fiscal and budgetary reforms while retaining the distinction on the basis of Revenue and Capital expenditures. Since the Union and the States have to work together on the methodology, State has also adopted the same system from the financial year 2017-18 budget.

Tax proposals

Accordingly, the main taxes of the State Government like the Value Added Tax, Central Sales Tax, Entry Tax, Cess and Luxury Tax etc. and also the taxes of the Government of India like the Central Excise and Services Tax, have now been subsumed in the Goods and Services Tax.

Goods and Service Tax (GST)

GST, will replace multiple state and central taxes to create one national market and single tax in the country. This bill seeks to subsume all central indirect levies like excise duty, countervailing duty and service tax and also state taxes such as value added tax, entry tax and luxury tax, to create a single, pan-India market.

GST will be a game changer in the states as they eradicate the cascading effect on goods and services.GST will bring down the cost of goods and services as there will be no cascading effects of taxes. He added that GST is expected to increase revenue by widening the tax base and improving the taxpayer compliance. 7% items are such on which no taxes would be levied, 14% items would be in the lowest bracket of 5% tax, 17% items will have 12% tax, 43% items will have 18% tax, and 19% items, which are generally not used by people will have 28% tax.

Only the Goods and Services Tax will be levied in place of all these taxes in the indirect tax regime. Petroleum products and liquor have been kept out of the GST, as of now. The rates of the tax will be uniform on goods and services in the entire nation. As per the decision taken by the GST Council, the Goods and Services Tax will be implemented from 1st July, 2017 onwards.

The State Government has made all necessary preparations for the implementation of the new tax regime so that the trade and industry of the State do not face any difficulties. E-payment will be made compulsory for the payment of taxes.

 

Sikkim : Schemes and Projects

by

Sikkim : Schemes and Projects

Various schemes have been implemented in the State for the growth and development. In order to provide inclusive growth and provide equal benefits and opportunities to all the people, schemes have been launched.

Various schemes are as

Chief Ministers Start Up Scheme

In order to develop entrepreneurship to young minds , this scheme has been launched. In this scheme, 25% subsidy will be provided with an investment of up to Rs. 20 lakhs. This Scheme is being launched with the objective to boost entrepreneurship and encourage start-up ventures by providing them with financial support. Initially a sum of Rs. 10  crores is being earmarked during this fiscal.

Health

Proud Mother Scheme

A new scheme has been launched with initial allocation of Rs. 5 crores, known as “Proud Mother Scheme” which provides a cash incentive of Rs. 7000 at the time of birth of the first child and another Rs. 10,000 at the time of birth of the second child.

Chief Minister’s Annual and Total Health Checkup (CATCH)

It is first of its kind public Health care initiative in the country .The programme’s first phase covering more than 95% of total population has been completed.

In this health profile of all the citizens have to be made. It provides comprehensive health care with focus on health promotions and preventions of  by annual and periodical head to toe health check up free of cost. for all the citizens of Sikkim.

Mukhya Mantri Jeevan Raksha Khosh

It was started in the state during 2014-15, by the state government under which financial assistance of US$ 0.03 million would be provided to the patients. The patients under the BPL category would be granted a financial assistance of US$ 0.05 million.

Rural Development

Mukhyamantri Nagar Awas Yojana

The state government has launched Mukhyamantri Nagar Awas Yojana. Under this scheme, the Sikkim government will construct 250 residential housing units. The decision was taken by the Sikkim Housing & Development Board.

A list of the beneficiaries of Mukhyamantri Nagar Awas Yojana will be prepared by the state government. Besides this, the state government has also approved housing scheme of flats in east Sikkim. Although this scheme will be joint ventured under the state government and the private agencies but houses will be provided to the poor people of the state.

Green Mission

Sikkim Organic Mission

State has voluntarily adopted Organic mission and act as a role model for the whole world.

The process for bringing total cultivable land of 58,168 hectare under Organic Mission has been started in 2010. Agencies accredited by Agriculture and Processed Food Products Export Development Authority are certifying the organic process in

Organic products like fruits and vegetables not only provide additional value to the farmers but  also provides multiple benefits. It also supplements the ecotourism of the Sikkim .

Sikkim Green Mission

State Green Mission has completed 12 years in June 2017. Its main aim is to boos t green measures in the state. The  mission envisages in avenue plantation and beautification of all vacant and waste lands It protects roads from sides and also in maintaining aesthetic beauty for the travelers.

10 minutes to  Earth Mission

Six lakh saplings of trees and flowering plants are planted every year within 10 minutes just before monsoon since 2009. This will help in sequestering carbon dioxide from the atmosphere.

The forest department provides free saplings to other departments and other organizations. It is also being done in Urban areas, as in these areas ornamental flowers and shrubs have been planted.

Universal Financial Inclusion

The Chief Minister’s Rural Universal Financial Inclusion Programme was launched during the Independence Day Celebration on 15th Aug, 2010. The programme aims to provide universal access to formal banking services to rural Sikkim, provide easy access to formal financial services, ensure inclusive and equitable growth, empower rural women and to accelerate economic development in rural areas in general.

It will also provide insurance services related to house and personal accident to the beneficiary families. Under this programme, about 70,000 rural families in the State will be benefited by opening a savings bank account in the name of the mother of the nuclear family. They will be able to operate this account through a composite biometric smart bank card. The facility for savings and withdrawals from these bank accounts will be provided in the Gram Panchayat Unit itself by opening 163 Points of Service (PoS) facilities to be operated by Banking Business Correspondents as per the Reserve Bank of India guidelines.

Self Sufficiency Mission

Government has made significant strides in transforming it as a producer State particularly in regard to enhancement of produce from the agriculture and allied sectors. State is working hard to ensure that all kinds of demands created in the State are met within the State. And state wants to see the people of Sikkim themselves fulfill local demands by becoming producers of goods and services. State has been successful in achieving 100% chicken meat and eggs self sufficiency within the State. Government is  striving towards creating vital infrastructure for training, value addition and marketing in this sector to enable people to become producers.

Social Security Mission

Under the mission, the State government has initiated various schemes for different age groups. Various shelter homes for welfare of distressed women have been established. Besides, the State government has introduced welfare schemes for Scheduled Castes, Scheduled Tribes, Most Backward Classes and Other Backward Classes. The schemes are in the form of scholarships, inputs to farmers belonging to marginalized section of society, Scheduled Caste sub-plan and Tribal sub-plan and establishments of a development corporation for the various communities.

Government has worked relentlessly to guarantee full socio-cultural and economic security to all section of the people on a larger canvass of human centric development. Special dispensation in various forms and formats is bring provided to the needy and deserving sections of citizens belonging to various social groups, differently abled persons, old aged and vulnerable groups.

Skill Development Mission

The Skill Development Initiative was launched in 2003 and apart from the Directorate of Capacity Building, the State Institute of Capacity Building at Karfectar with state of the art facilities for residential training have been established. Under the Chief Minister’s Self-Employment Scheme 5,780 youths have been covered for self-vocational ventures encompassing various agro-based activities and IT and Tourism related vocations.. Many boys and girls primarily from rural areas are undergoing different kinds of vocational up gradation trainings in such Institutes across the State.

Chief Minister’s Self Reliant Mission

Objective : Main objective is to empower youth to realise their full potential and understand their roles and responsibilities in making full contribution to the development. This mission plays the significant role in creating employment  opportunity  thereby  making  financial  independent  by  setting micr0 small and medium enterprise  in the state.

Various sectors include

Industrial-Manufacturing, Processing & preservation of food items.

Animals Husbandry-Dairy, piggery, Poultry , bee keeping.

Tourism-Rural tourism, eco tourism, gust house, home stays, cyber cafes, restaurant/fast food ,travel agencies, adventure tourism(pare gliding , rafting, trekking).

Handicrafts-indigenous  handicraft like carpet & ravi weaving ,woodcraft, traditional painting ,tailoring ,jewellery, black smithy.

Agriculture, Floriculture & horticulture-organic seed production ,ginger, cardamom, orange & apple plantation. ,vermin  compost,  bio-fertilizer production, orchid production, seasonal flower production etc.

IT Sector-computer hardware, software programming, web designing. Creative Sector-Fashion design, interior design draftsmanship.

Sikkim Tourism Policy 2015

To create a plan for the development of human resources in the tourism sector. Providing a quality experience to tourists by enhancing the infrastructure and transport facilities in the state.

To promote tourism in the state of Sikkim by creating a marketing cell within the Tourism Department.

To establish Sikkim as an ultimate and unique ecotourism destination, offering memorable and high quality learning experiences to visitors to contribute to poverty alleviation and promote nature conservation.

To promote ecotourism in a sustainable manner based on the Global Sustainable Tourism Criteria.

IT Policy of Sikkim

To provide better governance and generate employment.

To improve productivity in government departments through computerization.

To promote the Northeast as an attractive investment destination through several concessions and incentives.

Sikkim : Planned Development

by

Sikkim : Planned Development

State government has given large attention to the planned development of State so as to improve the socio economic indicators of the State. Urbanization is a part of the development process and rural-urban migration is largely common in developing economies and it is common for the state of Sikkim. During these processes, existing urban facilities like housing, sanitation, transportation, safe drinking water supply, and health are generally under stress. Therefore, in the case of towns like Gangtok, Namchi, Gyalshing, Mangan and other notified bazaars, Government is working to develop sufficient support facilities and are already transforming each urban center as models of excellence.

Sikkim government has laid emphasis on the planned development of the state. Overall strategy to induce positive development in the state has been laid. It has been laid at for levels :-

State as a whole

Four Districts

Urban Growth centers

Basic Urban Settlements

A well planned  strategy has been adopted to envision the “Urban” Sikkim of the future. The State Government has also adopted a Concept Note on Micro Cities, a granular intervention in the development of Rural Marketing Centers and Class III Bazars. All bazars will be eco friendly and smart bazars. It is unizue programme for the development of state and government has provided huge investments for the programme.

The Strategic Urban Plan for the State documents the guidelines for the planning of towns and bazaars across the State with due room to keep their unique strengths, weaknesses, opportunities and threats as part of the planning process.

One city of Sikkim i.e. Namchi has been selected among the 100 shortlisted cities to be developed under the Smart Cities Mission of the Government of India. With overall development, Namchi can be made a world class city.

Gangtok which is the capital of the State with a population of a little over one lakh, is already implementing schemes under the Atal Mission for Rejuvenation and Urban Transformation(AMRUT) to improve basic services. Gangtok has also been shortlisted to participate in the Smart City programme and is a probable addition to the Smart City list.

State Government has decided to introduce the Smart City concept to construct underground malls and markets in these towns to create larger spaces for urban business hubs. Under the Smart City concept, Government want to develop the cities into a vibrant and connected city of opportunities.

Central Plans in Development of the State

Ministry of Development of North Eastern Region (DoNER) launched North East Rural Livelihood Project (NERLP) that would create 0.3 million jobs in Mizoram, Nagaland, Sikkim and Tripura. The US$ 115.1 million project would be implemented during the 12th Five Year Plan and is financed by the World Bank. It would be implemented in 14 blocks of Sikkim. The project is expected to be completed by 2018

Up gradation and modernization of raw water trunk mains and water treatment plant for Greater Gangtok has been taken up. 80% of work completed Under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM)has been completed. The rehabilitation of sewerage systems of Gangtok is being undertaken at a cost of US$ 5.3 million. Water treatment and distribution system up gradation are also being undertaken at a cost of US$ 15.74 million.

To extend financial support to the state government and to provide water supply facilities in towns having population less than 20,000, the centrally sponsored Accelerated Urban Water Supply Programme (AUWSP) was launched that has been merged with Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT). Under this, US$ 8.7 million has been allocated for development of water supply systems and sewerage in Mangan, Namchi, Jorethang, Melli and Rangpo.

The Sikkim Water Security & Public Health Engineering Department (WS & PHED) provides water supply to Gangtok, six major notified towns, 41 other urban towns and 92 notified rural marketing centers. Gangtok has a requirement of 30 million litres per day and the WS & PHED has a storage and distribution capacity of 45.5 million litres. During 2015-16, the major functions such as solid waste, car/bazaar parking contract, sanitation, trade license, etc. were relocated to urban local bodies. Moreover, during 2016-17, the state government is targeting development of residential colonies to minimize uncontrollable migration across the state.

The state government is laying emphasis on providing Wi-Fi services across various major towns of the state, during 2016-17. In addition, other mobile technologies such as online payments, inner line permit tracking system, m-Tourism, etc. would also be provided in the state during the same period. Moreover, during 2016-17, an announcement was made by the Chief Minister that under “Micro-Cities” concept, development work on 39 small bazaars would be undertaken in a phased manner, during 2016-17. The total budget allocation for urban development during 2016-17, is estimated to be US$ 15.77 million. In addition, US$ 5.82 million and US$ 5.27 million would be allocated for the development of water supply & sanitation as well as housing sector, respectively.

Smart City Mission

Smart Cities Mission focus on the  most pressing needs and  the greatest opportunities to improve lives of the people. They tap a range of approaches – digital and information technologies, urban planning best practices, public-private partnerships, and policy change – to make a difference. They always put people first.

The objective is to promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of ‘Smart’ Solutions. The focus is on sustainable and inclusive development and the idea is to look at compact areas, create a replicable model which will act like a light house to other aspiring cities. The Smart Cities Mission is meant to set examples that can be replicated both within and outside the Smart City, catalyzing the creation of similar Smart Cities in various regions and parts of the country.

The Smart City Mission is an urban renewal programme initiated by the central government in June 2015. The main aim of the program is to improve infrastructure and to create sustainable and citizen friendly urban cities. A smart city is defined as a city which is highly developed in terms of infrastructure and communications. At its launch in 2015, the central government had identified 100 towns across India to be under this programme.

The central government has announced plans to develop Gangtok, Pelling, and Yuksam cities as smart cities as in coming years.

The central government announced plans to develop Namchi as one of the 98 smart cities in India.

Atal Mission for Rejuvenation and Urban Transformation (AMRUT)

It emanates from the vision of the Government articulated in the address of the President of India. The objective of the Mission is for providing basic services like water supply, sewerage, urban transport etc to household and build amenities in cities which will improve the quality of life for all, especially the poor and the disadvantaged is a national priority.

As per the state budget 2016-17, work on service level improvement plan under AMRUT is expected to be submitted to the Central Ministry during 2016-17.

Gangtok which is the capital of the State with a population of a little over one lakh, is already implementing schemes under the Atal Mission for Rejuvenation and Urban Transformation(AMRUT) to improve basic services.

Main Features of Budget of Sikkim

by

Main Features of Budget of Sikkim

Main theme of the Budget 2017-18 – Sustainable Development

Total Receipts and Total Expenditure

For the fiscal year 2017-18, a gross expenditure of Rs. 6364.02 crores has been projected in the budget.

After taking into account recoveries amounting to Rs. 142.20 crores, the net expenditure comes to Rs. 6221.82 crores.

The fiscal deficit remains in adherence to the fiscal management targets set in the Sikkim Fiscal Responsibility and Budget Management Act, 2010, i.e. not more than 3% of GSDP. The contribution from total tax revenue is of the order of Rs. 669.51 crores and in the case of Non-Tax revenue, Rs. 426.46 crores.

The total gross expenditure includes allocations amounting to Rs. 81.76 crores under the dispensation of the North Eastern Council, Rs. 153.66 crores under Non Lapsable Pool of Central Resources, and Rs. 1326.76 crores under Centrally Sponsored Schemes.

In Union budget, the distinction between Plan and Non-Plan has been done away with from the year 2017-18 onwards. This has been done as a measure towards bringing about major fiscal and budgetary reforms while retaining the distinction on the basis of Revenue and Capital expenditures. Since the Union and the States have to work together on the methodology, State has also adopted the same system from the financial year 2017-18 budget.

Reforms in various sectors

Eco Smart Villages

A new concept of “Eco-Smart Villages” is being proposed in this budget with an initial budgetary provision of 1 crore. This is being proposed on the premise that each village has its own characteristic strengths which can be developed independently in providing welfare services and local employment to the people. Each village could develop their unique development models, whether in the promotion of village tourism, pilgrimage centres or dairy farming, etc. This also includes the development of “One Home One Garden” concept through which each household will develop a personal garden with the Government providing necessary technical support.

Education

Education in Sikkim is free up to the college level and state is further  making sincere efforts to improve educational standards further both in terms of coverage and quality.

A programme for Educational Quality Improvement launched in eight pilot Senior Secondary Schools of the State has received a funding of around one crore from North Eastern Council. Further it is set to be expanded to cover all Senior Secondary Schools of the State.

Energy

In the terms of clean and renewable energy, Sikkim has attained self-sufficiency in power generation. The Teesta Stage-III with 1200 MW capacity was successfully commissioned on 17th February 2017. State’s total installed capacity has improved to 2013.07 MW subsequently, by initiating other hydro electric projects. The on-going 97 MW Tashiding and 96 MW Dikchu hydro power projects are scheduled to be commissioned by April/May of 2017. The installed capacity will be enhanced correspondingly.

This is a historic milestone and it has made the State self-reliant in clean energy production and has boosted the State’s revenue generation capacity. With the commissioning of such power projects at this scale, state is  no more a consumer state when it comes to energy. The state has become a producer State that provides energy for the nation.

It is estimated that Sikkim has a peak potential capacity of 8,000 MW and a steady 3,000 MW of hydroelectric power. About 28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode.

Agriculture

The state government is also laying emphasis on improving organic farming in the state. During 2015-16, the state government recognized the existing MPCS in the state to promote and enhance organic farming in the state. As a result of these initiatives, the state was certified as the first fully organic state in India, by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

The Sikkim Organic Mission is introducing an e-voucher card system as an effective mechanism to distribute assistances under the Direct Benefit Transfer for ensuring that the Scheme funds are channeled directly to the beneficiaries. This would be a first of its kind initiative in Sikkim and probably in the Country as well.

The state government launched Sikkim AGRISNET, an internet-based agriculture information centre, to promote scientific agricultural methods and convert research into practice in the agricultural sector.

The Sikkim government has announced a technical collaboration with floriculturists from the Netherlands and Thailand to develop the state’s potential in floriculture and market cut flowers from the state globally.

The state government is targeting to launch new agricultural schemes for making farming more profitable in the state and allowing the youth to determine agriculture as a budding source of livelihood. Implementation of such schemes is expected to result in increase in the area utilization for the cultivation and production of various crops.

The Sikkim Government plans to set up Tea Development Corporation of Sikkim, which would be the nodal agency for developing the tea Industry in Sikkim. It would work to expand the Temi tea estates in the state and acquire new gardens either wholly or partially owned by the government.

Tourism

Tourism in Sikkim has emerged as the new profession of the  people with its vast natural potential. Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flori–tourism and adventure tourism has given fillip to the tourism trade in the state where a large of number of people are engaged under different employment opportunities.

Infrastructure

As of 2015-16, Sikkim had a total road network of 2,425.45 km. The state government proposed an allocation of US$ 15.36 million for construction of roads and bridges in the state and US$ 7.46 million for road transport.

The total allocation of budget for urban development is estimated to be US$ 5.94 million during 2015-16. In addition, US$ 17.14 million would be allocated for the development of water supply and sanitation and housing sector in the state.

Industry

Allocated budget for the industry and minerals sector in Sikkim is estimated to be US$ 9.46 million. Out of this total allocation, villages and small industries would be allocated US$ 5.97 million and large industries would be allocated US$ 2.75 million. The remaining US$ 0.73 million would be allocated to the non-ferrous mining and metallurgical industries of the state.

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low manufacturing and labour costs. Sikkim is home to 14 major pharma companies, which have significant investments in the state. These include Cipla, Sun Pharma, ZydusCadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharma and Unichem.

In order to give a boost to handloom and handicrafts sector, the Government of Sikkim has been making several efforts, which include providing training to upgrade the quality and designs of the products; bringing expertise and professionals for their marketing and supply, etc.

The Government of Sikkim has placed information technology high on its agenda. The budget allocation for information and broadcasting is expected to be US$ 0.96 million during 2015-16.

The Department of Information Technology, Government of Sikkim is in the process of setting up an IT park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong. The IT Park will have state-of-the-art facilities that will offer a plug and play environment and cater to the specific needs of the information technology and business process outsourcing (BPO) segments.