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  • Sikkim Budget Analysis 2024-25

Sikkim Budget Analysis 2024-25

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The Finance Minister of Sikkim, Mr. Prem Singh Tamang, presented the Budget for the state for the financial year 2024-25 on August 5, 2024.

Budget Highlights

  • The Gross State Domestic Product (GSDP) of Sikkim for 2024-25 (at current prices) is projected to be Rs 52,555 crore, amounting to growth of 11% over 2023-24.
  • Expenditure (excluding debt repayment) in 2024-25 is estimated to be Rs 13,589 crore, an increase of 13% over the revised estimates of 2023-24.  In addition, debt of Rs 414 crore will be repaid by the state.
  • Receipts (excluding borrowings) for 2024-25 are estimated to be Rs 10,749 crore, an increase of 13% as compared to the revised estimate of 2023-24.  
  • Revenue surplus in 2024-25 is estimated to be 1% of GSDP (Rs 499 crore), lower than the revised estimates for 2023-24 (2% of GSDP).  In 2023-24, as per the revised estimates, the revenue surplus is expected to be higher than the budget estimate (0.1% of GSDP).
  • Fiscal deficit for 2024-25 is targeted at 5.4% of GSDP (Rs 2,840 crore).   In 2023-24, as per the revised estimates, fiscal deficit is expected to be 5.3% of GSDP, higher than the budget estimate of 4.5%. 

Policy Highlights

  • Tourism:  A comprehensive tourism policy will be developed.   It will focus on developing high-value tourism corridors and creating employment opportunities in tourism.  For convenience of tourists, an online permit system will be introduced for visiting Tsogmo and Nathula. 
  • Roads:   Construction of an Alternate Highway will be undertaken at a cost of Rs 2,503 crore.  

Sikkim’s Economy

  • GSDP:  In 2023-24, Sikkim’s GSDP (at constant prices) grew at 8.5%, compared to 8% in 2022-23.  In comparison, national GDP is estimated to grow at 8.2% in 2023-24.
  • Sectors:  The agriculture sector grew by 2.2% in 2023-24.  Manufacturing sector grew by 8.7% in 2023-24.  In comparison, it grew by 7.2% in 2022-23.  Services grew by 9.5% in 2023-24.  
  • In 2023-24, agriculture, manufacturing, and services sectors are estimated to contribute 8%, 62%, and 30% to the economy, respectively (at current prices).
  • Per capita income:  The per capita income of Sikkim in 2023-24 (at current prices) is estimated at Rs 7,07,181, an increase of 13.7% over 2022-23.

Figure  1 : Growth in GSDP and sectors in Sikkim at constant prices (2011-12)

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Note: Agriculture includes mining and quarrying; Manufacturing includes construction and electricity.  These numbers are as per constant prices (2011-12) which implies that the growth rate is adjusted for inflation.

Sources: MoSPI; PRS.


 Budget Estimates for 2024-25

  • Total expenditure (excluding debt repayment) in 2024-25 is targeted at Rs 13,589 crore.  This is an increase of 13% over the revised estimate of 2023-24.   This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 10,749 crore and net borrowings of Rs 2,862 crore.  Total receipts for 2024-25 (other than borrowings) are expected to register an increase of 13% over the revised estimate of 2023-24.
  • Revenue surplus in 2024-25 is estimated to be 1% of GSDP (Rs 499 crore), lower than the revised estimates for 2023-24 (2% of GSDP).  Fiscal deficit for 2024-25 is targeted at 5.4% of GSDP (Rs 2,840 crore), as compared to 5.3% of GSDP at the revised estimate stage in 2023-24.  In 2024-25, the central government has allowed a fiscal deficit limit of 3.5% of GSDP for states (of which 0.5% of GSDP becomes available on undertaking power sector reforms).

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