in sikkim

Sikkim Public Finance and fiscal Policy

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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

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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

Languages and Literature of Sikkim

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Languages and Literature of Sikkim

  • Today, all the main languages spoken in Sikkim have been given the status of a “State language”.
  • Notably, Bhutia, Lepcha and Limboo languages have been included in college curricula, while other languages, such as Rai, Gurung, Pradhan (Newar), Mangar and Tamang, are taught till the secondary school level.
  • Financial help is directly given to different communities to promote research in their respective languages
  • Sikkim is inhabited by over twenty ethnic communities, each unique in their tradition, customary practices, language and attire.
  • The outstanding beauty of these people living in harmony and sharing in amity each other’s cultures, ethos and traditions is a colourful mosaic of Sikkimese society

Bhutia People Language of Sikkim

  • Bhutias are divided into two groups – Tongdu-ruzhi with four clans and Bebtsengyed with eight clans, though there are a number of other sub castes.
  • They speak and write in the Bhutia language which is also called Lhokey although their script, language, religion, dress and ornaments have semblance with the Tibetans.
  • The Bhutia language, a long with the Lepcha and Limboo languages are taught in Sikkim till t he univer ity level.

Lepcha People Language of Sikkim

  • They have their own language, known as ‘Rongring’, with its script, ‘Mutanchi Rong Aming’.
  • The State Government has accorded official status to the language, along with the Bhutia and Limboo languages.
  • Since the year 2000 it has been taught in schools and colleges in Sikkim and from 2016 it has been taught at the university level.

Bhujels People Language of Sikkim

  • They have their own language, called Puhgal Gnur which is a part of the Tibeto-Burman sub-family and Sino Tibetan family of languages.
  • Some o f them converse in their own language .

Gurungs People Language of Sikkim

  • Gurungs have their own language, Tamu Kye and script, Khema.
  • The Gurung language (along with six others) was given official status in 1995 by Chief Minister Pawan Chamling, and is being taught in selected Government schools up to the secondary level.
  • Text books, magazines and dictionaries have also been published in Tamu Kye.
  • Since 2001, the Gurung edition of the Sikkim Government weekly newspaper, the Sikkim Herald, is also being taken out.

Jirels People Language of Sikkim

  • Jirels are known to have an ethnic and linguistic semblance with the Sherpas and Central Tibetan tribes.
  • Their language, like the Sunuwar language, is also a part of the Kanauri branch of Tibeto-Burman.

Kagatey People Language of Sikkim

  • The community is divided into several sub-groups like Dongba, Sarpa, Shyangba, Lama and Chyaba.
  • They speak in Kagate, a language of the Kyirong-Kagate language sub-group of the Sino-Tibetan language family, which has similarities with languages of Yolmo, Sherpa and Bhutia

Majhis People Language of Sikkim

  • Majhis converse in their own language but have no script of their own.
  • They are dark brown in complexion, medium in height and well built, and have classic Mongoloid features

Mangar People Language of Sikkim

  • They have their own language, belonging to the Tibeto-Burman family, and also have their own script, ‘Akkharika’.
  • In 1995, the State Government recognized this language as one of the State languages of Sikkim along with the Rai, Gurung, Tamang, Sherpa, Newar and Sunuwar languages.
  • The teaching of the Mangar language is being introduced in schools that have the greatest number of Mangar students

Newars People Language of Sikkim

  • The Newars have their own language.
  • They used to have a number of scripts as well but in Sikkim the “Prachalit” script is the one in use.
  • The “Ranjana” script is used in Buddhist Monasteries and the Tantric Kutaktshar Mantra of Buddhists consists of seven letters of Ranjana script.
  • The Newar language has been declared an Official Language of Sikkim in 1995 and has been introduced in selected Government schools’ curricula from the year 2002.

Rai People Language of Sikkim

  • The Rai or Kirat Khambu Rai community is one of Sikkim’s major indigenous ethnic communities and has been living in Sikkim from ages past.
  • Their language and script, which belongs to the Tibeto-Burman family of languages, was recognised as one of the official languages of Sikkim with effect from 31 March, 1995 vide the Languages (Amendment) Act, 1995, and published in the Sikkim Government Extraordinar y Gazette No. 76 dated 21 April, 1995.
  • This language has, since the year 2002, been taught in various Government schools in Sikkim.

Sherpas People Language of Sikkim

  • They have their own dialect, which belongs to the Tibeto-Burman languages, and they use the Sambhota script as a medium of writing books in their language.
  • The Government of Sikkim granted official status to the Sherpa language in 1995 along with other languages and the language is being taught in selected Government schools up to the secondary level.
  • The Sikkim Herald – the official newspaper of the Sikkim Government – Sherpa edition started publication in the year 2001 and has since been in print on a weekly basis

Sunuwar People Language of Sikkim

  • Mongoloid in appearance, they speak both in Nepali and Koinchlo, which originates from the Sino-Tibeto-Burman family of languages.
  • Their script is believed to be of ancient origin and possesses only six vowels and twentyfour consonants.
  • Koinchlo was recognised by the Sikkim Government under the Sikkim Official Languages Act, 1977, and is being taught in Government schools till Class V.
  • Since 2001, the Sikkim Government weekly newspaper, Sikkim Herald (Sukhim Neskutek) is also being produced in the Koinch language.

Yolomo People Language of Sikkim

  • Theys peak the Yolmo language o f the Kyiron g-Ka gate branch of the Sino-Tibetan language family, which has a similarity to the Kagatey, Sherpa and Tibetan languages.
  • They use the Sambhoti (Tibetan) script, though modern academics pre fer to use the Devana gari scri pt as well.

Thakuri People Language of Sikkim

  • They speak and write Nepali, using the Devanagari script.
  • But their spoken language is markedly different from that of common Nepali.
  • For instance, Thakuris use the word ‘darshan’, instead of ‘namaste’ or ‘namaskar’.
  • Claiming to have belonged to Rajgharana, they also use a respectable dialect of Nepali like “maiya sahiba”, “babu sahib,” “yuraj,” dulahi rani,” “muma hajur,” “buba hajur”, “khaisyo”, “laisyo” etc.

Handicrafts of Sikkim

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Handicrafts of Sikkim

  • Traditional arts and handicrafts have been the very breath of Indian Civilization visa-vis Sikkim too.
  • Significantly, Sikkim is also known for its traditional handicrafts, paintings, motifs, carpet, traditional tribal shoes, dresses, ornaments, weaving, and so on.
  • The traditional handicrafts in Sikkim had has enormous cultural significance.
  • Many of the Bhutia and Lepcha as well as Nepalese are engaged in traditional handicrafts production of Sikkim.

Handloom Weaving of Sikkim

  • In ancient times, the Lepcha’s of Sikkim were said to use yarn spun out of stinging nettle (sisnu) plant to weave clothes.
  • Today cotton and woollen yarn are used together with vegetable dyes and synthetic colours.
  • Lepcha weaves or ‘thara’ is woven in vertical looms with a backstrap. Such looms are of small width.
  • Traditional design with different colours are used to make tharas which are used for making bedspreads, bags, belts, curtains, cushion covers, table mats, tray cloths etc, apart from their traditional dress.

Woodcarving of Sikkim

  • It is one of the most important crafts of Sikkim.
  • Traditionally, only the Buddhists Bhutias and Lepchas used to practise wood carving. Indeed, wood carving is an ancient art form of both the Lepchas and Bhutias of Sikkim.
  • The items of woodcraft having wide range of variety can be found from household items to partitions to eight Buddhists lucky signs.
  • Woodcrafts are available in the following shapes choktse or table, almirah, sofa-sets, drawers or bhodin , screens, lamp stands, cheosum or altars, wall decorations, etc.

Wooden mask of Sikkim

  • One of the most important materials items of Buddhists’ traditional culture that has special socio-religious significance is wooden mask of various types being used during their religious dances by the Lamas.
  • The masks are carved out of the tough light wood of the giant climber called Zaru-shing, mostly found in the high altitude areas of Sikkim.
  • While in Tibet they were composed of mashed paper and cloth.
  • In all cases they are beautifully painted and varnished, and are provided with yak tail wig.
  • Each mask has a specific meaning and a story with certain religious connotation associated Various Wooden Masks with it.
  • Traditionally the mask dances are staged by the Lamas or monks in the Gonpas or Monasteries.
  • Such dances are normally performed only by men in the monasteries.
  • There are different types of mask normally made by Bhutias and Lepchas like mask of Khangchendzonga, mask of Garura, mask of Mahakal, etc.

Thangka Painting of Sikkim

  • The important Thangka is a paintings of divinities or group of divinities on silk clothes which depicts different incarnations and life of Lord Buddha, Goddess Doma (Tara), Guru Padmasambhav or God Chana Dorji or for that matter, any Tibetan saint, wheel of life (one of the purest Buddhists emblems) or some other deity, surrounded by deities of lesser significance etc.
  • Thangkas are the religious scrolls found hung in monasteries and houses of Buddhists.
  • It has an excellent tradition in Sikkim.
  • Such paintings are considered very auspicious and are supposed to drive away evil spirits.
  • Thangka painting is a renowned art of Sikkim.
  • “The Thangka works of master craftsmen sell for thousands of rupees abroad. They work in seclusion in remote villages” as cited by exgovernor of Sikkim namely Taleyarkhan (1981)

Cane and bamboo work of Sikkim

  • It is also the traditional handicraft Bhutias, Lepchas and Nepalese of Sikkim.
  • Cane and bamboo pieces are first of all split by using simple tools like Khukri or knife to make thin strips.
  • Thereafter the strips are sized as per requirement and are then intricately woven and modified and improved upon as per the graphical design.
  • There are varieties of cane and bamboo-craft products like, fruit, baskets, bamboo flower sticks bear mugs, hair clips, tea-trays, tea strainers, spoons, flower vases, piras, mats, hats and tumblers.
  • In Sikkim bamboo grows in abundance. But the cane is grown only in limited areas; thereby bulk of it comes from neighboring Siliguri or other parts of the North East.

Preparation of Lucky signs of Sikkim

  • Another important handicraft is the ‘Lucky signs’ mostly made by women in Sikkim.
  • The lucky signs are made by adopting two types of methods
  1. one type of embroidery work done by using needle on silk or ‘sharteen’ clothes
  2. Another is the paintwork (fabric) on silkl’shirteen’ clothes.
  • Such lucky signs are presented either in the form of words or symbol. It is used as wall hanging and means the ‘symbol of peace’.

Hand-made paper making of Sikkim

  • It is another important handicraft item.
  • Apart from other units, there is another important section namely Handmade – paper unit in the Government Institute of Cottage Industry at Gangtok, Unit was opened in the year of 1962.
  • Handmade paper, namely ,
  1. Rayon paper (used for rapping);
  2. Rags paper (used for making files);
  3. Card sheet (used for making greeting cards and paper bag).
  • Raw materials are used to be brought from Kolkata.

Carpet Weaving of Sikkim

  • Traditionally, carpet (locally known as Den) weaving is a symbol of cultural expression in the state of Sikkim.
  • Besides, Carpet is very important export oriented handicraft industry in Sikkim.
  • The carpets are of with various exquisite and intricate designs, motifs and colours which are typical of Sikkimese type and made of various sizes.
  • The price ranges vary according to size and quality of the particular carpet. Carpet weaving is dominated Carpet product by women.
  • Though it is a traditional activity, very few families follow it as apart of family tradition.

Blanket Weaving of Sikkim

  • It is also one of the traditional handicrafts of Sikkim
  • It is normally done by women particularly in North Sikkim.
  • The blankets are woven on loom, and the raw materials are available in local market.
  • There are mainly two sizes of blanket available i.e. 4 ft. by 6ft. and 4 ft. by 7 ft.

Soft Toys of Sikkim Supported by Sikkim Government and GoI

  • The Soft Toys Production unit of the Directorate of Handicrafts and Handloom, Zero Point, Gangtok is one of the prominent sectors for support and creation of self employment in Sikkim.
  • This sector is being re-energized into a home to home industry through a project initiative namely “Production and Training for Soft Toys at Gangtok, Sikkim “funded by the North Eastern Council, Ministry of Home Affairs, Government of India and also Government of Sikkim.
  • The toy making craft is an activity that can supplement and contribute to the family income and also create self employment.
  • The focus of the department is therefore to facilitate continuous capacity building and skill upgradation in this sector and thereby create a resource base of trained manpower.
  • Quality standardization and product diversification are two important areas of focus and therefore the best raw materials for creation of quality products are being used in the training centres.
  • The training module has been oriented in such a manner so as to emphasis and promote products that are closely connected with the environment and also identify with the local ethos.
  • Our main motto is to offer quality products to our valued customers at competitive prices.
  • The Soft Toys Sector provides self employment and income to the large number of artisan in terms of quality and cost comparativeness of the soft toys products of DHH are compared to the best of the world.
  • Presently, one project on “Production and Training on Soft Toys at Gangtok, Sikkim” funded by North East Council is underway and 225 numbers of trainees are being trained all over the state.
  • The department is required to ensure placement and create self employment for the trainees within and outside the state.

Folk Songs of Sikkim

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Folk Songs of Sikkim

People and Culture of Sikkim

  • The People of Sikkim consist of three ethnic groups, that is, Lepcha, Bhutia and Nepali.
  • Communities of different hues intermingle freely in Sikkim to constitute a homogenous blend.
  • Hindu Temples coexist with Buddhist Monasteries, Churches, Mosque and Gurudwara.
  • The predominant Communities are Lepchas, Bhutias and Nepalese.
  • These myriad Cultures has produced a quintessential Sikkimese Culture that encompasses all ways and walk of life, but has also managed to preserve their own identity.
  • These can also be seen in the various places of Worship, Festivals and Cultural dances that are celebrated through the year.
  • Folk songs and folk dances occupy a prominent place in the culture of Sikkim.
  • Men and womenfolk fully participate in dances to mark such important occasion like birth, weddings rituals or any other festivals
  • For those belonging to the peasant & labour class the melodious folk songs and dances arc indeed life giving ambrosia whose lifting tones & rhythmic pattern wipes away their fatigue hunger & worries.

Music cum Dance of Bhutias of Sikkim

  • Bhutias have a rich folk culture. Men and women sing folk songs and perform folk dances.
  • ‘Denjong Chha-Lu’ is one of the popular national songs of an older Sikkim, Beyul Demojong – a hidden land endowed not only with natural beauty but also with spiritual contentment.
  • Bhutias are devotedly Buddhist and the Denjong Chha-Lu highlights the significance of the secret land of plenty i.e. Sikkim.
  • Through this song-cum-dance marked with foot-tapping and graceful hand movements, the Bhutias also express their reverence of great teachers and sacred places by whose grace Sikkim has become a beatific land.
  • The dancers don traditional attire (see above) to perform. Musical accompaniment is provided by instruments like the dranyen (a six stringed instrument producing melodious notes), gyumang (many stringed instrument, usually 74-stringed), piwang (two stringed instrument), flute, cymbals and drums. Bhutias are intrinsically nature-lovers.
  • Their country songs, called zhunglu, mostly contain descriptions of the landscape and its animals.
  • The song, ‘Zigmo Zeepa Jhoen’ means to greet animals and witness their merrymaking.
  • With rhythmic foottapping matched by the music of the dranyen, gyumang, piwang, flute, cymbals and drums, the dancers first greet the sun, and then form a circle to greet the snow lion of the mighty mountain, the vulture, the king of the birds, the ten-horned stag of the flat land, the striped tiger of the jungle, the golden fish of the sacred lake, the singing birds of the pleasant grove and the sturdy horses of the tamed stables.
  • As they tap out their rhythms, the dancers greet young lads of this ‘arcane’ land to showcase their skills at arrow-shooting, and to ask the young lasses as well to exhibit their talent at singing.
  • Through the medium of song, the Bhutias convey their conviction in the belief of peace and merrymaking.

Music cum Dance of Bhujels of Sikkim

  • Bhujels are fond of folk songs and dance, which are mostly seasonal, though some are used at any time.
  • Some of their popular dances are the Ghatu, Chutka, Jahmre (Folk Duet) and Nachan (Padurya).
  • Chutka’s various enactments begin from Maghe Sankranti (mid-January) and continue through till Asar Purne (midJuly).
  • Usually performed at night, it involves a group of boys going to the houses of unmarried girls in the evening, sitting outside their houses and singing the ‘Chutka’ which is laced with love and promises.
  • After the boys sing three or four rhymes, the girls come out from inside the house, and the entire neighbourhood begins to dance to the beat of the drums (Takyu) played by the boys.
  • Interestingly, the girls do not sing. Before leaving the next morning, the boys pay for the feast organized by the dancing girls’ parents.

Music cum Dance of Chettris of Sikkim

  • Chettris have a tradition of folk songs, lores and music, and use of stringed musical instruments.
  • One of the oldest and most popular group dances in which the Chettri community rejoices is the Maruni Naach.
  • The dance form traces its origin to Tihar, a period that marks the return of the Hindu god, Rama, from exile.
  • During the festival, which runs for 15 days, richly dressed Maruni dancers go on a house-to-house visit, performing in their courtyards.
  • Curiously, the dancers are usually accompanied by a clown, called dhatuwaray, whose job it is to protect the Maruni from rowdy elements and to keep alive the general performance with his gestures and humour.
  • In the good old days, the role of Maruni, surprisingly a female character, was enacted by a male. With the change in customs and traditions, the dance has evolved and female dancers are now performing that central role.
  • The dancers tune their steps to the different beats of the madal – also adorned with marigold flowers. With flute and cymbals, the intricate patterns of their dance blend into the pulsating rhythm of festivity and celebration.
  • Before the dance performance, the dancers assemble at the house of the teacher and offer prayers to the madal.
  • The teacher plays the madal in a slow, grand tempo, and then starts the decoration of the maruni.
  • Maruni is not only confined to singing and dancing; it also is comprised of dance dramas, conforming to different aspects – emotions and feelings; gestures; songs and clothes – as laid down in the Natya Shastra, an ancient Indian treatise on the performing arts, encompassing theatre, dance and music

Music cum Dance of Damai of Sikkim

  • The Damai people are very good folk musicians.
  • Both men and women take part in dance and music.
  • Some men are professionals in that they are known for using nine types of musical instruments, called naumati baja.
  • This is a traditional profession inherited from their ancestors which is why they still serve as folk musicians for all the Nepali communities of Sikkim, especially during marriages.
  • Naumati baja is an ensemble of nine traditional musical instruments, which lends an auspicious aura to ritual functions and auspicious occasions such as weddings.
  • The naumati baja repertoire consists of context-specific traditional tunes such as seasonal rice-planting tunes (asare), music for the Hindu month of Phalgun (phagu), the seasonal tune of the October Dasain festival (malasri); songs performed for the bride’s departure at weddings (beuli magne); music accompanying ceremonial rites (astute); popular folk dances, modern folk songs, etc.
  • Typical features of current naumati music are small intervals, stepwise melodic movements and short repetitive phrases, among others.

Music cum Dance of Kamis of Sikkim

  • Kamis are joyous people who spend their pastime in music and dance.
  • They are also expert performers of the traditional folk dance, Maruni Nritya.
  • They have folk songs related to marriage, juari is held after the harvest, and they perform Maruni Naach and Madale Naach at the time of Tihar and Dasain, their biggest festivals.
  • The theme and origin of this dance form may be similar to the Maruni Naach performed by the Chettri community and Mangar Maruni staged by the Mangar community, but this performing art, performed by Kamis depicts Maruni as a male character garbed in female costumes and ornaments.
  • Even the dhatuwaray or phursungay, who acts as the court jester wearing funny masks and clumsy clothes in order to make people–especially children–laugh, is traditionally typical.
  • The dance begins with sakhi or sasi songs, sung to pay obeisance to all the gods and goddesses of the earth, sky, the underworld and all the four directions of the earth.
  • As the Maruni dances to the tune of the naumati baja, the jester keeps alive the dance with his gestures and humour.
  • Although this dance is associated with the festival of Tihar, because of its popularity, it is performed even on occasions like marriages.

Folk Dances of Sikkim

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Folk Dances of Sikkim

People and Culture of Sikkim

  • The People of Sikkim consist of three ethnic groups, that is, Lepcha, Bhutia and Nepali.
  • Communities of different hues intermingle freely in Sikkim to constitute a homogenous blend.
  • Hindu Temples coexist with Buddhist Monasteries, Churches, Mosque and Gurudwara.
  • The predominant Communities are Lepchas, Bhutias and Nepalese.
  • These myriad Cultures has produced a quintessential Sikkimese Culture that encompasses all ways and walk of life, but has also managed to preserve their own identity.
  • These can also be seen in the various places of Worship, Festivals and Cultural dances that are celebrated through the year.

Various Lepcha Folk Dances

Lepcha Folk Dances

  • Through this romantic dance, story of a young boy and a girl in love is conveyed.
  • A group of boys ask a group of girls for their hands for the purpose of marriage and in turn promise them with rich gifts and ornaments.
  • The girls, however, turn down the offer and ask them to approach their parents, instead.
  • This colourful dance is performed with the support of melodious Lepcha songs and musical instruments such as Sanga (drum), Yangjey (string instrument), Cymbal, Yarka, Flute and Tungbuk.

Zo-Mal-Lok Folk Dance of Sikkim

  • This famous folk dance of Lepcha community shows normal activities such as sowing, reaping and harvesting of paddy.
  • The old people and young folk alike join hands to sing, dance and indulge in merry making.
  • The graceful movements of male and female dancers become more noticeable with the background of pleasant sounds of seasonal birds.
  • Musical instruments used to support the dance are Tungbuk, Flute, Cymbal, Drum, etc.

Chu-Faat Folk Dance of Sikkim

  • Literal meaning of Chu is Snowy Range, while that of Faat is Worship.
  • This group folk dance is performed in the honour of Mount Khangchendzonga, the guardian deity of the Sikkimese people.
  • The dancers while carrying butter lamps and green bamboo leaves perform a ritualistic dance by singing devotional songs.

Tendong Lo Rum Faat Folk Dance of Sikkim

  • It is based on a famous Lepcha folk lore often retold to the new generation of Lepchas in the form of lyrical poetry.
  • According to the legend, this group dance is performed to save people from the onslaught of mighty, mountainous rivers, First, the Lepchas living on the Tendong Hill in South Sikkim are reported to have offered prayers to the God through this dance.
  • They desired the almighty to save them from the disaster of rising water.
  • As per folklore, God came as a bird and began sprinkling sacred millet beer on water.
  • Soon, the level of water subsided and people heaved a sigh of relief.

 

Kinchum-Chu-Bomsa Folk Dance of Sikkim

  • This famous folk dance vividly describes the natural beauty of Sikkim, or Ney-Mayel-Lyang (a heavenly, hidden paradise) called so, by the Lepchas.
  • The snow covered mountain peaks, green captivating meadows, enchanting valleys, thick vegetation, rivers and water falls, holy lakes and serene monasteries sanctify this land.
  • The young Lepcha boys and girls show their attachment with the land by performing the dance in their colourful attire.

Bhutia Folk Dances of Sikkim

Denzong-Neh-Na Folk Dance of Sikkim

  • This group dance comprising of boys and girls is performed to pay homage to the past saints such as Guru Rimpoche and present saints in order to get their blessings.
  • The musical instruments which support the graceful steps of the dancers are: Flute, Yangjey, Drum and Yarka.

Ta-Shi-Yang-Ku Folk Dance of Sikkim

  • A group of boys and girls through this dance try to invoke benign deities to shower fortunes on their home.
  • They remember some animal deities also to bring good fortune and prosperity to the people.
  • It is also performed during the consecration of a new house and to bless a newly married couple.

Tashi Shabdo Folk Dance of Sikkim

  • This age old group dance beautifully and gracefully shows the custom of offering Khadas (scarf) on auspicious occasion.
  • The white scarf exchanged by the members of the group during the course of dance is basically a symbol of peace, purity and prosperity.
  • The dancers dance to the melodious tunes duly supported by musical instruments such as Yarka, Drum, Flute and Yangjey.

Guru-Chinlap Folk Dance of Sikkim

  • Through this particular group dance performed by boys and girls, due respect is shown to the various Buddhist Gurus and Saints of Sikkim and their blessing is requested for overall peace, prosperity and happiness.
  • Exchange of Khadas also takes place between the dancers during the course of the dance.

Singhi Chham Folk Dance of Sikkim

  • In this group dance five boys led by a herdsman dance like legendary Snowlion.
  • The snowlion is a significant cultural symbol of the state.
  • The presence of two snowlions dancing under the guidance of a herdsman looks extremely attractive and enchanting to the viewers.
  • Musical instruments (without any songs) used are Drum, Cymbal, Yarka and Yangjey.

Yak Chham Folk Dance of Sikkim

  • Through this group dance performed by four male dancers under the command of a herdsman, utility of Yak for a common man living in high altitude areas is shown.
  • The dance begins in slow and measured steps to the clash of cymbals and the sound of the trumpets.
  • The group dance always makes a powerful impact on the audience and appears very attractive to the children.
  • Though Chhams are performed in all the monasteries of Sikkim, the ones performed at Pemayangtse, Rumtek and Enchey being more impressive draw large audience.

Nepali Folk Dances of Sikkim

Maruni Folk Dance of Sikkim

  • It is one of the oldest and popular group dance forms of the Nepali community, usually performed by three male and three female dancers.
  • In good old days, the role of Maruni, essentially a female character, was enacted by a male. With the change in customs and traditions, female dancers are now performing such a central role.
  • It is performed during the festival of Tihar in the courtyard of each house.
  • The steps of the dancers look very graceful in the background of soothing songs ably supported by musical instruments such as Harmonium, Madal, Flute and Ghoongur.

Chutkay Folk Dance of Sikkim

  • Through this romantic group dance, performed by a group of male and female dancers, joys of life and feeling of happiness is shared during the harvesting season and on some other happy occasions.

Dohori Folk Dance of Sikkim

  • This group dance of Gurung community is usually performed by three male and three female dancers.
  • In a traditional setting, after a hard days work, the dancers would assemble at ‘RodiGhar’ (a sort of entertainment centre) and exchange their views through songs and dance.
  • The musical instruments used are Madat Flute and Ghoongur.

Jeurum Silly Folk Dance of Sikkim

  • By means of this group dance of Rai community, performed by one man and four women, feelings of family members and friends is expressed on the occasion of a girl’s marriage.
  • The dancers aim to protect the Lakshmi (prosperity) of the house. Youth and old alike also join the dancers.
  • Dhol and Jhamta are the two musical instruments used.

Tamang Selo Folk Dance of Sikkim

  • This group dance of Tamang community with robust foot tapping and elaborate sound and display of Damphu instrument is performed on all happy occasions.
  • It highlights vigour and vitality of the community.
  • Tamang songs known as ‘ Hwai’ are full of human emotions.
  • These are so popular that no Nepali merrymaking is considered complete without singing a Tamang song.

Lakhey (Mask) Dance Folk Dances of Sikkim

  • This group mask dance of Newar (Pradhan) community is performed to ward off evil spirits and to bring peace and prosperity.
  • The musical instruments which support the dance form are Khe( Dhol), Jhali and Dhimay.

Naumati Folk Dance of Sikkim

  • In this beautiful group dance of Damai community nine kinds of musical instruments are used to perfection.
  • These are two types of Senai ( Shehnai), Turhi, small and big, Damaha (Nagara) of two types, Tuyamko (Small Dhol) of two types, Dholki and Jhyamta (cymbal).
  • The Naumati Baja is a regular feature during the wedding and other auspicious occasions.

Chyap-Brung Folk Dance of Sikkim

  • Chyap-Brung is the traditional musical instrument of the Limboo community.
  • It is like a Dholak in shape but much bigger in size.
  • During the course of group dance, male dancers hang the instrument around their necks with the help of a rope and beat the drum with an open palm on one side and a stick on the other.
  • Such a manoeuvre produces two different sounds which echo boldly in valleys and mountains.

Dhaan Nach Folk Dance of Sikkim

  • This group dance performed by four men and four women with the backing of harmonium, madal, flute and ghoongur shows the symbol of good and firm spirit of farmers against rain and scorching heat.
  • In order to break the monotony of routine field work, men and women attempt merrymaking through song and dance.
  • It is a ritualistic dance performed by the youth and old alike in traditional costumes, since time immemorial.

 

Fairs and Festivals of Sikkim

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Fairs and Festivals of Sikkim

People and Culture of Sikkim

  • The People of Sikkim consist of three ethnic groups, that is, Lepcha, Bhutia and Nepali.
  • Communities of different hues intermingle freely in Sikkim to constitute a homogenous blend.
  • Hindu Temples coexist with Buddhist Monasteries, Churches, Mosque and Gurudwara.
  • The predominant Communities are Lepchas, Bhutias and Nepalese.
  • These myriad Cultures has produced a quintessential Sikkimese Culture that encompasses all ways and walk of life, but has also managed to preserve their own identity.
  • These can also be seen in the various places of Worship, Festivals and Cultural dances that are celebrated through the year.

List of major Fairs and Festivals

Loosong/Namsoong

  • Lossong celebrated all over Sikkim marks the end of the harvest season at the end of the tenth month of the Tibetan Year.
  • Taking cue from a good harvest and praying for even better prospects for the next crop, the festival is marked by religious masked dances in Enchey Monastery.
  • The dances symbolize the exorcizing of the evil spirits and the welcoming of the good spirits for the new year.
  • Lossong has now become an important festival where visitors from all over the world can get to see the local sporting events like archery, climbing of greased pole.
  • Local cuisine, handicrafts, floriculture and cultural programmes are some of the added attractions during the festival.
  • The festival is organized by Tribal Youth Association of Gangtok.

Lampokhari Paryatan Mahotsav, Aritar

  • Located at a height of 5100 ft, Aritar is surrounded by lush green forest, lakes and paddy fields.
  • The entire Khanchendzonga range can be viewed from this place. Aritar offers adventure sports, nature trails.
  • Lampokhari is one of the serene lakes where one can enjoy boating.
  • Added attractions are Aritar Monastery, Mankhim Dara, Phusray Lake, Pango Lakha and Rachela

Baisakhi Festival, Makha Tumin –Lingee

  • Organised to herald the spring season and the Nepali New Year.
  • Cultural programme, traditional customs, local cusinies and other local activities can be experienced

Sakewa

  • Sakewa is celebrated with great fervor by all the Kirat Khambu Rai community.
  • Also known as Bhumi/ Chandi Puja or land worshipping ceremony it is celebrated all over the State.
  • It is celebrated at that time of the year when cranes migrate to the Northern Hemisphere this indicates sowing season of cucumber, pumpkin and other kharif crops.
  • The festival begins with Shakti Puja at Mangkhim (temple) performed by a Chief Priest (Mangpa) for good harvest followed by the Shova Yatra.
  • Various traditional dishes like Wachipa, Bongchipa, Arakha Hengmawa, Baksa and Okrukma are served.

Saga Dawa

  • Full moon day of the 4th month in the Tibetan Lunar Calendar, around end of May and early June.
  • Saga Dawa is a very important festival for the Buddhists.
  • This day is considered to be the holiest of the holy Buddhist Festival.
  • On this day Lord Buddha took birth, achieved Enlightenment and passed away attaining Nirvana.

Bhanu Jayanti

  • A cultural festival organised to celebrate the birth anniversary of the Nepali poet, Bhanu Bhakta Acharya.
  • Competitions for school children are organised in various field such as poetry, drama etc.
  • Other programmes include cultural parade and culture programmes.

Drukpa Tshechi

  • This festival celebrates Lord Buddha’s first preaching of the Four Noble Truths to his first five disciples at Saranath.
  • The festival is held on the 4th day of the 6th month of the Tibetan lunar calendar.
  • Prayers are conducted in the major monasteries all over the State.

Namprikdang Namsoong , Dzongu, North Sikkim

  • Namsoong is celebrated to welcome the good spirits for the New Year.
  • Namsoong has now become an important festival where visitors from all over the world can get to see the local sporting events like archery, pole climbing etc Local cuisine, handicrafts, floriculture and cultural programmes are some of the added attractions during the festival.

Cherry Tea Festival Temi South Sikkim

  • Tea plantation at Temi, South Sikkim was commenced in the year 1969.
  • The plantation ranges between the elevation range from 1460 to 1890 msl.
  • Temi being agro- climatically suitable for cultivation of China variety of tea plants initially procured from Darjeeling Tea Gardens.
  • The tea factory with orthodox type of manufacture was established in 1977.
  • The garden is consistently producing superior quality tea acceptable to wide markets both international and domestic segments.
  • The festival is organised with objectives as under:
  1. To promote Sikkim (Temi) Tea globally.
  2. To promote new destinations in and around South District.
  3. To promote home stays and village tourism in order to enhance and generate income of the local community.

Lhabab Duechen

  • This festival epitomizes in a significant manner the descent of Buddha from the heaven of the thirtythree Gods after visiting his mother.
  • It is universally believed that Lord Buddha through his spiritual powers came to know about the whereabouts of his mother who did not live for a long time after his birth.
  • After gaining the necessary information about his mother he ascended to Heaven where he delivered sermons to his mother and other celestial beings.
  • During this period the disciples of the lord could not bear his long separation and longed to hear his preaching.
  • Buddha finally relented and descended on earth along a triple ladder that was prepared especially for the occasion by Viswakarma

Barahimizong

  • The festival of Barahimizong is celebrated by the Mangar community living in Sikkim.
  • The celebration reflects the faith in almighty as the bestower and protector of mankind.
  • Through this festival, the gratitude to God is expressed by offering fresh harvest and seek good fortune for the coming days.

 

Dasain ( Durga Puja)

  • Also known as Durga Puja, this fortnight long Hindu festival usually falls in the month of October.
  • The festival symbolizes the victory of the Hindu Goddess Durga over evil.
  • Barley seeds are sown in the soil on the first day of this festival and their growth foretells good harvest.
  • A week later is “Phulpati “meaning the day of flowers, followed by Maha Astami and Kala Ratri and Navami.
  • The 10th day of the festival is known as Vijay Dashmi and also marks the victory of Lord Rama over Ravana.
  • During this day people smear their foreheads with colored rice and the barley sprouts, which was sown on the first day of Dasain, are picked and placed over the ears.

Indrajatra

  • Indrajatra is an important religious festival celebrated with pomp and fanfare by the Newar community in Sikkim.
  • It is belived that many centuries ago, Indra (king of Heaven)’s mother needed specially scented flowers (Parijat).
  • Indra looked for them but could not find them in heaven.
  • Indra discovered Parijat flowers in the Kathmandu Valley and tried to steal them for his mother. He was caught and imprisoned by people in the Valley.
  • Indra’s mother came searching for him and people were shocked to know what they had done.
  • They released Indra and dedicated one of the most colourful festivals of Nepal to him to calm down his anger.

Pang Lhabsol

  • Pang Lhabsol, a festival unique to Sikkim is celebrated to offer gratitude to Mt Khanchendzonga, the Guardian Deity of Sikkim and to Yabdu, the Supreme Commander.
  • Rabong is now emerging as one of the important Buddhist Pilgrimage Destinations. Situated at the base of Maenam Hill, a sub-divisional headquarter and transit point for beautiful spots such as Chozo Lake, Ralong Monastery, Manilakhang Sakyamuni Cultural and Pilgrimage Centre and various tourist destinations of South Sikkim, Base Camp for trekkers to Maenam Hill and Borong Hot Spring.
  • A trek down to the sacred lake “Shar Chok Bhepu”, one of the four holiest caves in Sikkim, would be a memorable experience.

Namchi Mahotsav Namchi ,South Sikkim

  • Namchi – “Top of the Sky”, nestled among the hills at an elevation of 4,400 feet.
  • The town commands a panoramic view of the surrounding hills and snow capped mountains and stretches of the valleys below.
  • It is an excellent place for short stay and village excursions.
  • Samdruptse “The Wish Fulfilling Hill” has 135 ft high statue of Guru Padmasambhava which is the highest in the world.
  • Siddheshvara Dham (Char Dham) is another state of the art pilgrimage centre wherein replica of all four Dham has been built around an eighty seven feet high statue of Lord Shiva.
  • All 12 jyotirlingaas are also built around the temple complex.
  • With so much to offer to the visitors the Toursim Committees are actively involved in promotion and publicity of Namchi, South Sikkim.
  • Every year Namchi Mahaotsav is celebrated in the month of October.
  • There are activities like traditional sports, sale and exhibition of local arts and handicrafts, cuisine, flower show and sale etc.

Kagyed Dance

  • Kagyed dance, a customary dance festival, celebrated annually in Sikkim falls on the 28th and 29th day of the tenth month according to Tibetan calendar, which according to English calendar falls in the month of December.
  • In the name of eight tantrik Gods and Goddesses commonly called Kagyed, lamas on these days perform dances and sing songs in different monasteries and offer prayers to them requesting these deities to save human beings from the tormenting evil spirits and to bless them for good health and fortune.

Red Panda Winter Festival, Gangtok

  • The winter season in Sikkim draws a spectacular image of Mt. Khangchendzonga in its ivory grandeur, providing an alluring background while corpuscular rays pierce through the scudding clouds over the skies, adorning Sikkim perfectly for the cold season.
  • Red Panda Winter Festival previously known as Sikkim Winter Carnival is organized in the cold months of December/ January annually.
  • Like most festivals, the Red Panda Winter Festival showcased the traditions and culture of the Sikkimese people.
  • The festival integrates the locals as well as the tourists with events and activities themed on a typical Himalayan winter.
  • From food stalls that serves exquisite and delicious cuisines of various ethnic tribes and communities, to cultural carnival showcasing diverse culture and traditions of Sikkimese people, flower shows, handloom and handicraft exhibitions, adventure sports, photography contests, rock –shows, karaoke and dancing and many more other interactions forms the affair of the festival.

Pelling Tourism Festival

  • Pelling is one of the most popular tourist destinations.
  • Visitors can enjoy a magnificent view of the mountains including Mt. Khangchendzonga, the 3rd highest mountain in the world.
  • There are numerous tourist spots in and around Pelling.
  • A weeklong festival includes cultural extravaganza, sale of local handicrafts, handlooms and local cuisine

Loosong/Namsoong

  • Lossong celebrated all over Sikkim marks the end of the harvest season at the end of the tenth month of the Tibetan Year.
  • Taking cue from a good harvest and praying for even better prospects for the next crop, the festival is marked by religious masked dances in Enchey Monastery.
  • The dances symbolize the exorcizing of the evil spirits and the welcoming of the good spirits for the new year.
  • Lossong has now become an important festival where visitors from all over the world can get to see the local sporting events like archery, climbing of greased pole.
  • Local cuisine, handicrafts, floriculture and cultural programmes are some of the added attractions during the festival.
  • The festival is organized by Tribal Youth Association of Gangtok.

Guru Rinpoche’s Thrunkar Tshechu

  • “Guru Thrunkar Tshechu is celebrated as the birth day of Guru Padmasambhava, reverentially referred as ‘Guru Rinpoche’ in Eastern Himalayan region and Sikkim in particular.
  • Guru Rinpoche is revered and worshipped as guardian saint in Sikkim who blessed this land as ‘Bayul Demojong’ (hidden valley of rice) and transmitted tantric Buddhism in the region adjoined by Bhutan and Tibet in the 8th Century AD.
  • Among the galaxy of Buddhist monks, Arahats and Rinpoches, the prominence of Guru Padmasambhava as the principal associate and disciple of Lord Buddha stands out.
  • It was his prominence that transformed this land into predominantly a Buddhist land.
  • Guru Padmasambhava is not only revered by Buddhist but is held in high regard by the Sikkimese across all faiths.

Tendong Lho Rum Faat

  • Tendong Lho Rum Faat is the oldest festival of indigenous Lepcha community of Sikkim.
  • The festival is related to with a legend of deluge.
  • The indigenous Lepchas residing in the Himalayan belt had earlier named each and every mountain, hills, rivers, valleys and ravines which was known as Nye-Mayel-Lang.
  • Some of these mountains and rivers, hills and ravines have not only carried beautiful and romantic folk lore but historical significance as well.
  • These mountains and valleys figure prominently in their local myths and folklores.
  • Tendong Lho Rum Faat is celebrated with great pomp and grandeur in Sikkim on 7th and 8th August every year.
  • It is a unique ritual maintained by our fore-fathers since time immemorial which is a matter of great pride for all of us.
  • Realizing its importance and need to preserve this age old tradition and culture of the indigenous Lepchas, the Tourism Department has included this festival in the tourism calendar of events.
  • The festival is organised annually by the Tendong Lho Rum Faat celebration committee.

Dentam Rhododendron Festival

  • The three day long Dentam Rhododendron Festival is celebrated under Maneybong – Dentam Constituency in West Sikkim.
  • The festival will be staged in popular tourist destinations viz. Uttarey, Dentam, Hee Bermoik, Chyataal, Gurasaydara, Changay Village with host of activities ranging from nature to adventure based.

Ram Nawami (Chaitey Dasain)

  • This is one of the most auspicious festivals of Sikkim and is observed in the honor of Lord Rama.
  • The grand celebrations commemorate the birth of the virtuous king Rama who is universally adored for his flourishing and righteous sovereignty.
  • People from all over the state gather together to celebrate this festival with much excitement and vigor.
  • Also known as Chaitey Dasain it is also celebrated as tourist festival. Devotees hikes towards Tendong Hill, South Sikkim for offering prayers.

Sonam Lochhar

  • Lho means year or age and Sar means new or fresh.
  • The word Lhosar means New Year or beginning of new era.
  • Tamang community in Sikkim celebrates their new year on the first day of new moon or in other words the very next day after the no-moon day of month of Magh.
  • The Tibetan calendar is made up of twelve lunar months and Losar begins on the first day of the first month.

Losar

  • It is the Tibetan New year and is marked with a lot of gaiety and festivity across the State

Jorethang Maghey Mela, Jorethang, South Sikkim

  • Maghey Sankrati is celebrated all over Sikkim as one of the major festivals of the Hindu community.
  • However, it is not confined to only one religious group.
  • People of different religions come together to take part in this festival.
  • There are fairs in almost all parts of Sikkim.
  • People gather to take a holy dip in the rivers of Teesta and Rangit.
  • One of the biggest celebration of this festival is in Jorethang, South Sikkim, which lies on the banks of river Rangit.
  • The main activities during this fair are sale and exhibition of local handicrafts and handlooms, floriculture and horticulture products, cultural programme and competitions in local dance and music.
  • The festival carries on for almost a week. People from neighboring State as well as tourists from all over the country as well as abroad visits Jorethang during this festival.
  • Some of the adventure activities which are popular in this area are paragliding and angling

Sikkim : Trade and Commerce

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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

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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.