Budget Speech of Hon’ble Chief Minister
Sikkim Legislative Assembly
June 23, 2014
Hon’ble Speaker Sir,
With your permission, I rise to present before this august house
Budget Estimation for the year 2014-15. Let me begin by
extending my warm greetings to my fellow citizens who participated in
large number in the recently concluded Lok Sabha and State Assembly
elections. I would like to congratulate the Election Commission
of India, Chief Electoral Officer, Returning Officers and all other
officials including the police personnel for their contribution in
holding elections to the largest democratic country in the world.
Hon’ble Speaker Sir,
In January, 2014, I had presented to this august House Vote on
Account upto September, 2014 pending constitution of detailed Demand
for Grants for the year 2014-15. This was primarily because of
Parliament and Legislative Assembly Election in the State. The Demand
for Grants for the year 2014-15 are presented taking into
consideration the plan size of the last year. Variations, after
the discussions held with the Planning Commission will be reflected
by way of Supplementary Demands.
Hon’ble Speaker Sir,
This is the 20th budget of our Government. Sikkim Democratic Front
Government first took the responsibility to lead the Government on
12th December, 1994 and since then the people of Sikkim have
continuously reposed their confidence on us. Hence I stand once
again to thank our people for reposing this confidence which
encourages us in our continued efforts to work. We have been
consistently working to improve the socio-economic condition of our
people with utmost sincerity, devotion and hard work. I humbly
urge my legislator colleagues to honour and respect this sacred
mandate that we have received from the people of the State and
diligently strive to fulfill the aspirations and expectations of
every single Sikkimese.
Hon’ble Speaker Sir,
On 9th June, 2014, I had called on the Hon’ble Prime
Minister of India Shri Narendra Modi and conveyed our congratulation
to him for his appointment as the Prime Minister of India. I
had also submitted a Memorandum to fulfill the pending demands like
reservation of Assembly seats for the Limboo and Tamang Communities,
inclusion of left out Sikkimese ethnic communities in the Central
List of STs, granting of permission to the 17th Karmapa Ugyen Thinley
Dorjee to take his seat at Rumtek Monastery and Income Tax exemption
to the left out persons and old business communities of Sikkim.
Hon’ble Prime Minister gave me a very patient hearing and
assured to look into the matter in all seriousness.
Hon’ble Speaker Sir,
As you all are aware that the State Government has initiated the
“Organic Mission” programme for which we have already
received recognition from national and international communities for
our innovative work.
I am delighted to inform this august House that Sikkim has found
one more ambassador and promoter of our organic mission. The Hon’ble
Prime Minister replying to the debate on the motion of thanks on the
President’s address to Parliament in Lok Sabha on June 11, 2014
included Sikkim for specific mention for its landmark initiative as
being worth emulating.
“Sikkim is a small state. It has small population. But the
small state has done a very significant work. In the near future,
Sikkim as the pride of India is all set to become a fully organic
state. All produce there is going to be organic.
“There is a major demand for organic produce in the World.
Today people are very much interested in holistic healthcare. They
are willing to pay any amount of money for such organic products”.
“In order to capture this global market, if we link this
commitment of the Sikkimese farmers to further this program in the
Country, the lives of people living in the hilly state will change
for the better.”
Hon’ble Speaker Sir
The performance of the National Economy over the past two years
has not been encouraging due to combination of national and
international factors. The immediate consequence was cost escalation
across board and erosion in both corporate profitability and growth
of real disposable incomes. This resulted in abrupt decline in growth
from 9.3 per cent in 2010-11 to estimated 4.5 per cent in 2012-13.
Hon’ble Speaker Sir
The economy of Sikkim has also been affected by global and
national factors. This has resulted in slowdown in investment in
different promising sectors in the State. In spite of global
trend, Sikkim has sustained its developmental momentum comparatively
better off in the given situation. The challenge before us is to
further accelerate development by building up investors’
confidence, complete all on-going infrastructures and further
consolidate sectoral activity in the State.
Comparative assessment of our socio-economic statistics throw up
many positive data where our economy has improved by leaps and bound.
The State economy is expected to grow at 7.88 in 2013-14 at current
prices.
The Per Capita Income of Rs. 8,402 in 1993-94 has gone up to Rs.
1,68,100 in 2012-13 which is estimated to further improve to Rs.
1,96,144 at current prices in 2013-14.
Internal Revenue of Rs. 42.75 crores in 1993-94 has gone up by an
impressive Rs. 845.07 crores today.
Sikkim recorded GSDP growth rate of 22.8 percent in 2013-14 as
against 2 % recorded earlier in 1994-95.
The IMR of 70 per 1000 in 1993-94 has improved to 24 per 1000 at
present
The percentage of BPL in Sikkim was 41.43 in 1993-94 which stands
today at 8.19 percent only
The State Government is committed to sustain the momentum of
development through successive annual plans. Due to ensuing Lok
Sabha Elections, the Government of India has presented Interim Budget
for the financial year 2014-15 instead of a regular budget.
Plan Performance in 2013-14
The State Plan size for the year 2013-14 has been tentatively kept
at Rs. 2,210 crores. The Government of India has restructured
existing centrally sponsored schemes into 66 schemes only and the
funds transfer for these schemes has been re-classified as per Report
of the Committee on restructuring of CSS under the Chairmanship of
Shri. B.K. Chaturvedi, then member, Planning Commission. Now, the
fund under various schemes is directly transferred to implementing
Agencies by the Government of India which will be routed through the
consolidated fund of the State. As a result, the CSS shall form
part of the State Plan in future.
Hon’ble Speaker Sir
The Twelfth Finance Commission grossly under-estimated the
committed liabilities of the State. The State resources have been
adversely affected by this shortfall. Against the projection
made to the Thirteenth Finance Commission of Rs. 9131.45 crores, the
State Government was granted an amount of Rs. 4525.80 crores.
In the month of January, 2014, Fourteenth Finance Commission
visited Sikkim and the State Government had submitted a detailed
memorandum seeking grants of Rs. 20511.98 crores as Non-Plan
deficit grant, state specific grant, Local bodies grant, estimated
amount on account of Pay Revision etc. Sikkim joined the
mainstream only in 1975 and therefore the State Government has
requested the Fourteenth Finance Commission to take the population
figure of 2011 Census and not of 1971 under any circumstances as
population is a factor for determination of devolution of taxes &
duties. The projections are mainly for infrastructure
development for health, tourism, education and local bodies’
grant.
Hon’ble Speaker Sir,
Sikkim is the most peaceful state in the Country with best law and
order environment. Collectively we have to take pride in it and
also see that we promote harmony and peaceful co-existence through
our thought and actions.
The State Government continuously upgrade capacity in police force
to tackle emerging challenge by adopting the best procedures,
available crises management plans and by forming Quick Response
Units. The State Government also proposes to install CCTV
camera on all vital installations including State Secretariat
Building.
All Government employees including the police force and teachers
are the highest paid employees in the Country with range of other
facilities, incentives and promotion avenues. As a result of our
special initiative, the employees in Sikkim also enjoy income tax
exemption. In addition, we have undertaken various other measures to
promote the welfare of government employees and Sikkim is the best
State for the government employees in the Country.
Hon’ble Speaker Sir
The State Government accords special importance to the improvement
of infrastructure for the Judiciary. A special care is taken
for improving infrastructure like Court buildings, residential
quarters, vehicles and other equipments. A make-shift Judicial
Academy has already started functioning in the High Court complex and
a permanent complex is coming up at Sokeythang. The Government
will give special emphasis to the development of Alternate Dispute
Resolution Mechanism.
Hon’ble Speaker Sir
The State Government is dedicated to welfare of the poor and
providing free houses to people living below poverty line under Chief
Minister’s Rural Housing Scheme, besides providing other
facilities. I am privileged to mention that in Sikkim people
living below the poverty line are only 8.19% and we have set forth to
make Sikkim totally Poverty Free and Kutcha House free State by
2020. The State Government also proposes to provide 12% job
reservation to candidates belonging to BPL category for direct
recruitment under the State Government and Public Sector
undertakings.
Education
Education continues to be one of the topmost priorities of the
Government and over 20 % of total annual outlay goes to this sector.
Large number of incentives and quality improvement schemes are being
implemented for improving the quality of education and access to
school. Mid-day meal programme is implemented in all the
Elementary Schools. For greater access and improve quality of
education, the network of Colleges and Universities have been vastly
expanded during the last 20 years. Two Polytechnics, namely CCCT and
ATTC and ITIs have been established providing training in different
disciplines.
Today we can boast of our own Central University where a large
number of students are getting higher education. The permanent
University complex is being constructed and we propose to make our
University the most disabled-friendly University in the Country. The
purpose would be to provide full-proof structural design so that the
differently-able students could have easy access to all facilities.
This will encourage students from all over the world to seek
admission in Sikkim University.
According to 2011 census figures, 82.2% of our people are literate
as against the national average of 74.04%. The State has set
itself a goal to achieve 100% literacy by the year 2020. To
upgrade technological skill of the students, laptops were provided
free of cost to the Class 11, 12 and College students, besides
providing merit scholarships for higher education to the local
Sikkimese students.
At a more psychological and mental level, the State Government is
also looking at ways to impart moral education and introduce career
counseling for the children. The idea would be to provide them
scientific roadmap of life for better future.
I am also pleased to record and share that Sikkim has secured 3rd
rank in the category of Elementary Education in the Country as per
the Educational Development Index (EDI) released by the Ministry of
Human Resource Development recently. The EDI was measured based on
four constituents of Access, Infrastructure, Teachers and Outcome.
With this record, we are moving ahead to meet other goals in
the coming days as initiated by the State Government to further
strengthen our mission of providing qualitative education to children
in the State.
Skill Development
Another unique programme which perhaps is the first of its kind in
the country is the capacity building initiative which started in 2003
when we earmarked skill development fund for our youths. This was
followed by a more institutional measure in establishment of
Directorate of Capacity Building in 2007 and Institute of Capacity
Building in 2009. The centres provide opportunities to
unemployed youths and school dropouts to acquire meaningful skills to
seek jobs or for self employment. There are networks of 41
livelihood schools located in various parts of the State, all of
which are under the management and control of the capacity building
institute. The main objective behind this initiative is to
empower youth through skill development so that they remain gainfully
employed, contributing their share in the nation building process.
As far as possible, trainings are oriented towards meeting local
employment demands also imparting business and entrepreneurship
skills to the trainees who, otherwise, may remain unproductive or
their potential untapped for any meaningful purpose. The larger
objective has been to further enlarge the facilities and make our
citizens highly skilful human resource in the country and the world.
Business loan facilities extended to our educated unemployed shall be
provided to those persons already trained to carry out business
venture.
Power Decentralization
Today in Sikkim we have made the Panchayati Raj Institution strong
and vibrant through the process of decentralization both in terms of
power and funding. We have established 31 Gram Vikas Kendras in
the State in all corners of State for the benefit of people. More
than 70% of our budget is allocated for the development of the rural
sector as part of our policy initiative ever since 1994. Most
of the projects in the rural sector are now being implemented through
registered cooperative ventures, thus ensuring active participation
of the rural masses in the development process. Adequate
reservation in the Panchayati Raj System has ensured equal
participation by weaker sections of the society in the decision
making process.
Hon’ble Speaker Sir, we have made substantial progress in
the Health Sector over the past years and during the last 20 years,
quality of life of our people has improved. Quality infrastructure
has been created and the same is reflected in improved health indices
including improved life expectancy. We have simplified medical
reimbursement system to the BPL as well as to the Government
employees. The work for construction of 575 bedded Multi-Specialty
Hospital at Sichey already going on in full swing and we would like
to complete it by 2015. We are focusing on both curative and
preventive health care. The CATCH program seeks to address both the
concerns among people who are screened annually for comprehensive
health coverage.
Roads & Bridges
The Government is totally committed to improve the road
connectivity by improving road geometrics for better road network.
The total length of road maintained by State Roads & Bridges
Department till 1994 was 1889 Kms. and 123 Nos. of minor and major
bridges. Now the total length of roads have gone upto 3672 Kms.
and bridges to 216 Nos. The other important road like NH 31A,
North Sikkim Highway, Gangtok-Nathula Road are maintained by BRO and
time and again Government of India have been requested for early
construction and completion of two lane National Highway from Sevoke
to Gangtok via Damdim, Chalsa, Jaldhaka, Rachela to Aritar in Sikkim.
Indeed, you will be happy to know that Sikkim is a State with the
highest road density in the Country and we have already received
Bharat Nirman Award in Rural Road in 2009.
Buildings & Housing
Infrastructure development of various categories including
institutional buildings and public utilities have been constructed
all over the State. In fact, Sikkim has emerged as a conference
capital of the North-East Region. Various infrastructure
projects like Guest Houses, Teachers Guest House at Syari, Sikkim
House at Kolkata and Guwahati, All-India Service Quarters, New Raj
Bhawan Complex, Vidhayak Awas Block, Soochna Bhawan, Paryatan Bhawan
have been completed. The ongoing project of construction of
Tashiling Secretariat is on full swing.
Eco-Tourism
Tourism in Sikkim has emerged as the new profession of the
Sikkimese people with its vast natural potential. Promotion of
village tourism, homestay, cultural tourism, adventure tourism has
given fillip to the tourism trade in the State where a large of
number of our people are engaged. Sikkim abounds in natural resources
as manifested in its rivers, lakes, mountains, flora and fauna, water
glaciers, people, traditions, culture and religious institutions and
the preservation and sustainable harnessing of all these has already
made our State the premiere tourist destination in the world.
Hon’ble Members are aware that Sikkim has been listed and
recognized by the Lonely Planet global site as the best region to
visit in 2014 in the world. We collectively share this rare
recognition. Now we have the added responsibility to keep up and
further promote the good image of Sikkim.
Social Justice
In the area of social justice, the State Government in Sikkim is
pioneer in the Country wherein over 31 percent budget is spent under
the social sector. This is the highest per capita spending on this
sector anywhere in India. The Sikkimese people belonging to all
sections of society live a life of dignity and self respect.
The State Government has accorded high priority to all important
task of enabling and empowerment of weaker, under privileged,
marginalized and differently able sections of the society. Some of
the most innovative and path breaking initiatives of the State
Government are grant of Subsistence Allowance to people with more
than 40% disability, monthly pension to Unmarried women of 45 years
and above, educational grants and monthly pension to the Transgender
community and incentive of Rs. 2 lakhs for marrying a person with
different abilities, in addition to grant of regular monthly pension
to people of old age and widows. Similarly, proper nurturing and
grooming of our children is another priority of the State Government
which provides Hot Milk and Paustik Aahar coupled with pre-school
education to children upto 6 years of age through a wide network of
ICDS Centre.
Empowerment of women being corner stone of holistic development,
the State government has reserved 50% of seats in Panchayats and
other local bodies and 30% vacancies in Government jobs for women.
Another 30 percent is reserved for women in higher education seats
allotted by the Government. To give further impetus to the efforts of
various government organizations, the State government has launched
“Mukhya Mantri Mahila Shashaktikaran Abhiyan” under the
National Mission for Empowerment of Women.
As per calculation made by the State authority based on National
Survey Sample (NSS) data, the per capita asset value of the Scheduled
Tribes (Bhutias and Lepchas) in Sikkim is Rs 71,700 as against
national average of the STs of Rs 30,000. The per capita asset value
in general of the Sikkimese population is Rs 60,000 as against the
national average of Rs. 40, 000.
Forest & Environment
As we all know, Sikkim has distinction of having 82.31% of
geographical area of the State as recorded Forest area which includes
perpetual snow cover areas, glaciers, rivers, lakes and well stocked
forests. A total of 30.77% area of the State is under Protected Area
Network which comprises of 7 sanctuaries, 1 National Park as against
the National Average of 4%.
As distinct to Sikkim State and owing to our eco-friendly policies
and programmes, we have been successful in raising the forest cover
from 43.95% to 47.34% during the period from 1993 to 2011. These
policies include ban on grazing in reserved forest, ban on green
felling, ban on killing of wildlife, ban on use of plastics and
launching of ambitious green initiatives like Green Mission, Smriti
Ban program, Ten Minutes to Earth and conservation of wetlands, etc.
Our endeavor shall be to continue moving in this direction. As per
Financial Management and Resource Centre, Chennai, our State has been
the best example under national resource management performance in
land use sector.
The innovative eco-friendly initiatives of the State Government
have been a grand success. In this regard, the State Government
proposes to empower the forest officials posted at GVK level suitably
and adequately so that they are officially and legally empowered to
address the routine and day-to-day needs of the people at the grass
root level.
Hydel Power
The State Government has taken a bold initiative to judiciously
harness the abundant hydro-potential with regard to hydel energy.
Bestowed with the handsome hydel power potential of 8000 MW, we have
so far commissioned projects with generation capacity of 670 MWs
which is augmenting, by many folds, our past generation capacity of
32 MW in 1993-94.
The present generation capacity of 670 MWs is particularly
contributed by the 510 MW Teesta Stage V, 60 MW Rangeet and 99 MW
Chujachen Hydro Electric Power Projects besides several other mini
and micro hydel projets which have been commissioned over the recent
years. The Teesta Stage III Project is going on in full swing
and the first unit of 200 MW is likely to go into operation by March,
2015. This project will be the largest power project to be
commissioned in the country. A number of other power projects
in the PPP mode are also at the advanced stage.
Hon’ble Speaker Sir
We have number of projects which are under implementation and the
State Government’s first priority will be to complete all the
projects under implementation to avoid cost over-run and timely
completion. New projects will be taken up only after completion
of old projects.
Hon’ble Speaker Sir
I shall now dwell on the budgetary profile for the current
financial year. The size of the Annual Plan has been tentative
fixed at Rs. 2210 crore subject to revision after finalization of AP.
The total outlay includes the following components:
·
Rs. 348.00 crore – Prime Minister’s Relief Package
(earthquake reconstruction and rehabilitation).
·
Rs. 369.22 crore – Borrowings.
·
Rs. 372.27 crore – Additional Central Assistance (ACA).
·
Rs. 119.53 crore – Special Plan Assistance (SPA)
·
Rs. 230.00 crore – Special Central Assistance (SCA).
·
Rs. 130.50 crore – Grants for externally aided project.
In this budget, I have proposed total amount of Rs. 6666.71 crore
comprising of Rs. 3497.03 crores under Plan which includes
allocations under the dispensation of North Eastern Council,
Non-Lapsable Pool of Central Resources and Centrally Sponsored
Schemes and a provision of Rs. 3169.68 crores under Non-Plan account.
The estimate includes the provisions made as recoveries which are
adjustable as reduction in expenditure, subsequently.
I have projected the gross revenue of Rs. 6113.31 crores and
expenditure to the tune of Rs. 6666.71 crores for the fiscal year
2014-15 and difference is met through borrowings and funding through
the Public Accounts etc. The contribution from tax revenue sources to
the gross revenue receipts is of the order of Rs. 497.39 crores and
in the case of Non-Tax revenue the amount is projected at Rs.1098.92
crores. I shall now present the highlights of the Budget for
the year 2014-15 with a summarized account of the receipts and
disbursements incorporated in the budget.
A. RECEIPTS.
Amount (Rs. In crore)
1. State’s Revenue :
i)
Tax Revenue :497.39
ii) Non-Tax
Revenue :1098.92
2. Grants-in-Aid
:3560.85
3. State’s Share of
Shareable Taxes :956.15
4. Loans from Other
Institutions :441.96
5. Loans from Central
Government :14.50
6. Recoveries of Loans and
Advances : 0.78
7. Recoveries under
contingency fund :1.00
7. Public Accounts
: 5693.59
TOTAL
: 12265.14
B. EXPENDITURE.
1. State’s Annual Plan
: 2210.00
2. Centrally Sponsored Schemes
: 960.52
3. Non-Plan Expenditure
: 3112.68
4. Spillover provision of
previous year : 289.11
5. Public Accounts
: 5692.87
TOTAL
: 12265.18
C. DEFICIT : 0.04
Opening
Balance : 65.30
Closing
Balance :65.26
Hon’ble Speaker Sir
Sikkim has finally emerged as the true welfare state where we have
fulfilled the basic minimum needs and requirement of people wholly.
Now, our next program would be strengthening quality aspects across
sectors. That means, providing qualitative infrastructure,
qualitative electricity, drinking water so on and so forth.
Sikkim has achieved distinction for having introduced the most
innovative and first-of-its-kind programs under various sectors like
environment conservation, education, health and social justice. Be it
the case of ASHA workers, Aganwadi workers or MR and Workcharged
employees. For the MR and Workcharged employees, we have introduced
Group Personal Accident Insurance Scheme. You will be happy to know
that Sikkim, at 52 % has the highest percentage of employees working
in the entire country.
At the State level and nationally, youth population constitute
more than 40 percentage of total population. Over the last many
years, our focus has been chanalizing youth potential for all the
entrepreneurial venture. All programs of Government are
youth-oriented. We will continue to pursue this policy of youth
empowerment in the days to come.
Hon’ble Speaker Sir
During my last visit, I held detailed discussion with the Hon’ble
Prime Minister of India, Shri Narendra Modi about socio-economic
challenges facing us and also addressed the pre-budget meeting hosted
by the Union Finance Ministry. From the coastal region to the high
Himalayas, we have different issues and different fiscal constraints.
This requires that we need to design our own intervention appropriate
to address problems unique to our own geography and demography at the
given time.
Regionally and nationally, we have to collectively work out
corrective measures to check price rise and address concern about
rupee depreciation. Socio-political unrest including in Iraq bear
heavily on our development process as multiple issues impact our
lives, stoke inflation and render many of our socio-economic programs
incomplete and ineffective.
Through you, I would call upon my fellow Sikkimese, esteemed
friends in the Opposition, respected friends in the Bureaucracy,
civil society members, school teachers and students to contribute
profusely to the making of a stronger State which is culturally rich,
economically self-sufficient and morally self righteous. And,
we are aware that the fate of our people and the essential question
of development and security of the State rest in collective support
and contribution made by all of us.
This is time that we raise ourselves above the blame game and make
respective contribution in the nation building process. In
order to reinforce a complete realization of and wholehearted
participation by people in all our endeavours, I am confident that
with all of us together, it is within our power to make miracles in
the life of our people and the State.
With these words, I commend the Budget proposal for the
consideration of this August House.
Thank you, Jai Sikkim.