Sikkim demands Rs 71,624 cr from 15th Finance Commission

Sikkim has demanded "all inclusive" Rs 71,624 crore from the 15th Finance Commission citing falling non-tax revenue, according to an official release.

The demand was put forth during a meeting of the 15th Finance Commission Chairman N K Singh and its officials with Chief Minister Prem Singh Tamang and his cabinet colleagues.

The commission observed that the state has good potential in tourism, organic farming and horticulture and may establish more cold storages, value chains and develop food processing industries, the Finance Commission release said.

Also, it is the first state to be declared open defecation free (ODF) in India and has the second highest per capita income and low BPL population, the commission observed.

Sikkim also has good potential of hydropower sector and the production of pharmaceutical industries increased, has sound debt and deficit indicators but has the second highest unemployment rate of 18.1 per cent (After Tripura).

High per capita income and good share of secondary sector in GSDP is paradoxical to the high unemployment rate hinting towards jobless growth, the release said.

"Sikkim has third lowest own-tax revenues out of all states, in spite of having second highest per capita income. Due to sparse own resource base, the state depends heavily on transfer of resources from the central government. It receives 75 per cent of its total revenue receipts from union government.

"The own non-tax revenue remains an important source of revenue for the State.

It constitutes about 40 to 50 per cent of the own revenue receipts. However, NTR has declined significantly in last few years due to fall in revenues from lottery," as per the release.

"All inclusive the state has made a demand of Rs 71,623.97 crore to the 15th Finance Commission," it said.

The meeting discussed in details all the state specific queries raised by the chairman and Members.

The state was assured that all their issues would receive due attention of the Commission in its recommendations to the union government.

The state has also asked for separate grants for disaster management.

Sikkim has also called for a 'Peace Bonus' and a value of the amount of carbon sequestered by state's forests.

The state has also made a state specific demands for big projects to create capital assets and has asked for a State Specific Grant of Rs 6,483 crore to bridge resource gap, the official release added.