15th Fin Comm chief asks Sikkim to increase revenue base

The 15th Finance Commission Chairman N K Singh on Tuesday urged the Sikkim government to increase its own revenue base by undertaking development projects in various sectors including tourism and power.

Due to sparse own resources, the state depends "heavily" on transfer of funds from the central government, he said.

"Out of all the states, Sikkim has the third lowest tax revenue in spite of having the second highest per capita income," he told reporters here.

About 75 per cent of its tax revenue receipts are from the central government, he said.

Sikkim should undertake development of tourism sector with a focus to woo high-end tourists, Singh said.

He also advised the state government to look for revenue generation from power sector by completing various hydel power projects for which it should consider taking loans from multilateral sources.

Noting deficient health infrastructure in the border state, Singh said about Rs 1,700 crore will be granted for construction of medical colleges in three district hospitals at Singtam, Gyalshing and Namchi.

He also asked the Sikkim government to devise a roadmap to manage burgeoning debt.

The Commission's chief noted the connectivity-related issues of Sikkim and assured the state that he would take up the subject with the concerned authorities at the Centre.

Earlier in the day, the 15th Finance Commission members had called on the Chief Minister Prem Singh Tamang, popularly known as PS Golay, and discussed financial situation of the state and other issues.