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Hon’ble Speaker Sir and Hon’ble Members ofthis August House.

I take this privilege and honor to present the regularBudget for the financial year 2017-18 for discussion andsubsequent approval. I also extend my warm greetings tothe people of Sikkim, the officials, distinguished membersof the civil society and representatives from the mediapresent here today.

Before I proceed with the presentation of thebudget for the year 2017-18, I express my deepestcondolences on behalf of this August House and thepeople of Sikkim for the untimely demise of Late P. ShivShankar, the former Governor of Sikkim. May thealmighty God give strength and fortitude to his bereavedfamily members in this hour of irreparable loss. My heartfeltcondolence also goes to the family of Late D.R. Basnet,former MLA of the Melli Constituency from 1985 - 1994 ofthis August House. In his death, Sikkim has lost adedicated person of great wisdom who kept the interestof the Sikkimese people close at heart. Similarly, I alsocondole the untimely demise of Late J. Jayalalitha, theformer Chief Minister of Tamil Nadu, who was a greatleader respected and loved by the people and she willbe deeply missed by this great nation of ours. May hersoul rest in peace.

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Hon’ble Speaker Sir,

We witnessed the conclusion of Assembly Electionsin five States recently wherein our fellow Indians exercisedtheir democratic right of universal franchise to elect theirgovernment. The Bharatiya Janata Party under theleadership of Hon’ble Prime Minister recorded a historicalwin which was special in many ways. I on behalf of thepeople, the State Government and myself, congratulatethe Hon’ble Prime Minister for this landslide victory.

Hon’ble Speaker Sir

Today, I stand here proud as the representative ofthe people and the Leader of the House in the fullknowledge that we in Sikkim have already fulfilled theUnited Nation’s Sustainable Development Goals in theState. It also gives me immense happiness to share withthe people that our development policies and programsfrom day one have been tailored to attain these manysustainable goals. Be it in the area of poverty reduction,zero hunger, health and well being, quality education,gender equality, clean water and sanitation, cleanenergy, innovation, sustainable cities, peace and justice,Sikkim has addressed all these goals and achieved themthrough a sustained policy intervention at every level.Duly recognizing our contribution, the prestigious TheEnergy and Resources Institute has bestowed upon methe ‘Sustainable Development Leadership Award’ on

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October 6, 2016 for our impressive record inenvironmental conservation and sustainable development.

While I thank the people of Sikkim for theircontinued faith and confidence in our ability to deliver,I am pleased to propose ‘sustainable development’ as thecentral theme of this budget presentation.

Hon’ble Speaker Sir,

The State Government in Sikkim has achievedremarkable progress in the core areas of agriculture, health,education and development in infrastructure. Today,Sikkim is the most talked-about state in the Country. Wehave been lauded and appreciated at various forums forour efforts. Our unique policies and initiatives are beingemulated across the country as well as overseas and I amcertain that every Sikkimese citizen is happy and proudabout the achievements we have made.

Sikkim has evolved as a progressive State withmarked improvements in socio-economic indicators,despite facing the disadvantages of inadequateconnectivity, high cost of infrastructure building andmaintenance, difficulty in delivering services to dispersedpopulations in hilly areas. This budget marks a majormilestone in delivering our commitments which are firmlybased on prudent public finance management forachieving overall socio-economic development in Sikkim.

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Hon’ble Speaker Sir,

I have made several submissions in this AugustHouse and have demonstrated through action thatwhatever we commit to, we achieve. For the last 23 years,I have dedicated myself to working for the holisticeconomic development of the State, with the centralobjective of ensuring better lives for our people. The Lawand Order track record in the State continues to hold upan excellent benchmark. The State Government takespride that we have continuously been able to provide ahigh degree of security to the people, making Sikkim asecure place to lead a dignified life.

Hon’ble Speaker Sir,

Maintaining Law and Order is key in sustaining apeaceful and stable governance and for fostering growthand stability of the State. With a sanctioned strength of2,870 police personnel in 1994, the number has increasedto 6,500 personnel today who ensure safety and securityfor the people. There are 28 Police Stations, over 50outposts and a number of Inter State check posts.

The State Government has created a new milestonein the State policing history by designating two policeoutposts to be exclusively managed by police women. Thefirst all-women police station was formally established atRanipool on 30th March 2016 and the second one atTemi-Tarku on 30th September 2016.

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The Government is addressing the needs of theSikkim Police with respect to their operationalrequirements, mobility, communication requirements,housing and other needs. Various projects were approvedand sanctioned for the Modernization of Police Force andsome of these projects are in the final stage ofcompletion.

Hon’ble Speaker Sir,

In the area of clean and renewable energy, Sikkimhas attained self-sufficiency in power generation. You areaware that the Teesta Stage-III with 1200 MW capacitywas successfully commissioned on 17th February 2017.When we took over governance in 1994, the totalinstalled capacity was only 32 MW. We improved theinstalled capacity to 813.07 MW subsequently, by initiatingother hydro electric projects.

Now, with the commissioning of all generating unitsof Teesta Stage-III, the installed hydro power capacity ofthe State stands enhanced from the previous 32 MW in1994 to 2013. 70 MW today. The on-going 97 MWTashiding and 96 MW Dikchu hydro power projects arescheduled to be commissioned by April/May of 2017. Theinstalled capacity will be enhanced correspondingly.

This is a historic milestone and it has made ourState self-reliant in clean energy production and has

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boosted the State’s revenue generation capacity. With thecommissioning of such power projects at this scale, we areno more a consumer state when it comes to energy. Weare a producer State that provides energy for the nation.

The Teesta Stage-III is the second largest HydelPower Project to be commissioned in the country. TheState will receive 12% free power from 1st to 15th year and15% free power from the 16th to 35th year from the dateof commissioning. This way we are able to fulfill people’srequirement in the State in terms of affordable and cleanenergy as part of the United Nation’s defined sustainabledevelopment goals.

Hon’ble Speaker Sir,

The State Government has also accorded dueimportance to the quality of life of citizens in rural Sikkim.We have successfully provided for the basic minimumneeds of the people. For achieving larger developmentgoals, we have focused on the creation of quality ruralinfrastructure, the provision of basic minimum serviceslike safe drinking water supply and sanitation, ruralconnectivity through roads and foot bridges, amongothers. During the next financial year, we are also goingto establish a new Block Development Office atMangalbaria in West Sikkim.

Sikkim became the first Nirmal Rajya in the countryin 2008 by achieving 100% sanitation coverage and the

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first State to achieve Open Defecation Free status in thebeginning of 2016.

In Sikkim we have already constructed more than20,000 houses for our people. The constructions of anadditional 3,000 houses under CMRHM are being takenup immediately to achieve the status of “Kutcha HouseFree” State and “House For All” by 2018-19.

Ours is the State with zero hunger and the firstpoverty free State in India. This goal has been achievedthrough consistent policy prescription and a rigorousimplementation regime.

A new concept of “Eco-Smart Villages” is beingproposed in this budget with an initial budgetaryprovision of 1 crore. This is being proposed on thepremise that each village has its own characteristicstrengths which can be developed independently inproviding welfare services and local employment to thepeople. Each village could develop their uniquedevelopment models, whether in the promotion of villagetourism, pilgrimage centres or dairy farming, etc. This alsoincludes the development of “One Home One Garden”concept through which each household will develop apersonal garden with the Government providing necessarytechnical support.

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Hon’ble Speaker Sir,

The State Government has given topmost priority tothe road network as the state is solely dependent on theroads as the only mode of transportation for all goodsand commodities. The total number of length of road inSikkim in 1994 was 1800 kms which is increased to morethan 5500 kms at present. The State Government hasemphasized on a good quality road network to ensureimproved connectivity and reduction in travel time.

Most of the roads built earlier were meant to cater tolight vehicles and low traffic density. The specification forthe improvement of pavement proposed and adoptednow has been done to suit the increased traffic volumeand the axle load. The total length of the road involved is942.98 kms.

The work under Phase I has already been awardedto eligible contractors. The time period for completion mayvary depending upon the funding pattern and Phase I canbe completed within a period of three years from date ofsanction of the project.

The State Government is ready to overcome thechallenges in upgrading the roads to maintain theConstruction Management System at par with theNational Level.

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A defect liability period of 5 years under the QualityControl Mechanism has been introduced for all carpetingworks so that contractors are liable for any defects thatmay occur within the span of five years. This has beendone duly retaining the security deposit at 5% andEarnest Money Deposit at 2.5 % of work value during thedefect liability period. This deposit will be released onlyafter five years of satisfactory maintenance of workexecuted by the contractors.

All roads in state will be eco-friendly roads whichwill be transformed into garden roads. The idea is totransform Sikkim as a Garden State.

Hon’ble Speaker Sir,

The rural road connectivity has received anenhanced focus from the State Government with afunding pattern under the Pradhan Mantri Gram SadakYojana. From the Stage II sanctioned carpeting work of1176.79 km, 482.931 km has been completed. Besides, anew proposal for the construction of 25 roads with thecombined length of 154.94 km under the NewConnectivity (Stage I & II) program for the final left outhabitations in the core network, along with 26 Stage IIworks with a combined length of 125.37 km, is alreadyunder process for sanction under PMGSY. Theconstruction of 38 bridges sanctioned under PMGSY isunder progress.

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Under MGNREGA, it has been targeted to achievethe employment of 66,000 households and provide anaverage wage employment of 70 days per annum.A sizable part of this investment will be used to convergewith the housing scheme of Pradhan Mantri Awas YojanaGramin, along with joint initiatives with the Horticultureand Agriculture Department to implement Horticultureplantations, Bamboo and Medicinal Plantations, Vermicompost pit construction and the development ofCommunity Water Harvesting Tanks. In addition, theconstruction of Cowsheds and Pig Stys, jointly with theAnimal Husbandry and Veterinary Services Department,will also be converged with the scheme. All the paymentsare being made to the beneficiaries through Direct BenefitTransfer Scheme.

The funds under the 14th Finance Commission andState Finance Commission are directly transferred to thePanchayats for provision of basic services that directlyaffect the people in the villages.

Hon’ble Speaker Sir,

Urbanization is a part of the development processand rural-urban migration is largely common indeveloping economies. During these processes, existingurban facilities like housing, sanitation, transportation,safe drinking water supply, and health are generally understress. Therefore, in the case of towns like Gangtok,

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Namchi, Gyalshing, Mangan and other notified bazaars,we are working to develop sufficient support facilities andare already transforming each urban center as models ofexcellence.

The Strategic Urban Plan for the State documentsthe guidelines for the planning of towns and bazaarsacross the State with due room to keep their uniquestrengths, weaknesses, opportunities and threats as part ofthe planning process. A well planned three phasedstrategy has been adopted to envision the “Urban” Sikkimof the future. The State Government has also adopted aConcept Note on Micro Cities, a granular intervention inthe development of Rural Marketing Centres and Class IIIBazars. All bazars will be eco friendly and smart bazars.

It is a matter of pride for us that Namchi has beenselected among the 100 shortlisted cities to be developedunder the Smart Cities Mission of the Government ofIndia. With support from all, we can make Namchi aworld class city. Gangtok which is the capital of the Statewith a population of a little over one lakh, is alreadyimplementing schemes under the Atal Mission forRejuvenation and Urban Transformation to improve basicservices. Gangtok has also been shortlisted to participatein the Smart City programme and is a probable additionto the Smart City list.

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I am pleased to share with the Hon’ble Membersthat the State Government has decided to introduce theSmart City concept to construct underground malls andmarkets in these towns to create larger spaces for urbanbusiness hubs. Under the Smart City concept, we want todevelop our cities into a vibrant and connected city ofopportunities.

Hon’ble Speaker Sir,

In Sikkim, people receive free quality health careservices. There have been manifold improvements ininfrastructure, capacity building of human resource,manpower placement and the delivery of comprehensivehealth services.

A multispecialty hospital with full facilities atSokeythang, Sichey, is currently being constructed. Withthe completion of 85% of the construction, the hospital isscheduled to be completed by the end of 2017 so that thepresent hospital at Gangtok can be shifted to the newHospital Complex. Correspondingly, the planning andmanagement of human resource in terms of the creationof posts for super specialists, specialists, nurses andtechnicians is also being worked out.

Two Tuberculosis units with a 50-bed capacity isbeing set up at Gyalshing and Mangan District hospitals.Besides this, an Integrated AYUS Hospital is also beingconstructed at Gyalshing, West Sikkim.

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With improved health facilities and infrastructure,we have noticed significant improvements in healthindicators. However, in the last few years, it has beennoticed that the Total Fertility Rate (TFR) for the State hasbeen declining steadily. In 1994, the TFR for Sikkim was2.75 and in 2016, the TFR for Sikkim was 1.75. It is nota healthy trend if the TFR is below 2 since it means weare below replacement level and the population will showa negative population growth rate. This is a cause ofconcern and it brings new challenges for the future ofSikkim. In order to address this negative trend, theGovernment has already discouraged permanent methodsof sterilization. Today I am very happy to announce anew scheme with initial allocation of Rs. 5 crores, knownas “Proud Mother Scheme” which provides a cashincentive of Rs. 7000 at the time of birth of the first childand another Rs. 10,000 at the time of birth of the secondchild.

Hon’ble Speaker Sir,

The State Government has given a special focusthroughout the years on the education sector. We haveimproved our approach in providing facilities andinfrastructure, ensuring adequate number of capableteachers with good professional skills, and improvingcurriculum and teaching practices. Education in Sikkim isfree up to the college level and we are making sincere

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efforts to improve educational standards further both interms of coverage and quality.

The State Government has re-constituted the SikkimState Education Training Service cadre by creating moreacademic and administrative posts. The cadre has alsobeen revamped and renamed as the Sikkim StateEducation, Research and Training Service to emphasizeboth training and research.

The Government is also shortly going to constructan independent State Council of Educational Research &Training building to provide for necessary facilities to theacademic staff. Further, a programme for EducationalQuality Improvement launched in eight pilot SeniorSecondary Schools of the State has received a funding ofaround one crore from North Eastern Council. Further itis set to be expanded to cover all Senior SecondarySchools of the State.

It is heartening to note that the National Universityof Educational Planning & Administration has agreed toset up a School Leadership Academy for the State ofSikkim to provide leadership skills to school heads withinthe State. I am pleased to inform this House that theSCERT has successfully participated in the latest NationalAchievement Survey and conducted its own StateAchievement Survey at the elementary level. The survey

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has shown an improvement of around 10% among ourchildren since the last survey was conducted during 2013in both Mathematics and English.

After having joined Rashtriya Uchchatar ShikshaAbhiyan, the State Government has now decided to setup our own Sikkim State University to ensure largeraccess and provide for the necessary freedom andflexibility in choice of course and curriculum to theGovernment colleges. We have proposed to set up theSikkim University initially at Sikkim Government College,Tadong.

We will continue to promote integration ofeducation for sustainable development duly introducingstrategies and action plan, in service education ofteachers, more relevant curriculum contents in the systemwithin the State.

The education system in Sikkim wil l now betransformed and revolutionized star ting from theprimary level with an aim to rank it amongst the bestin the world. Buddhist University in Sikkim is being setup and the State Government has also decided toestablish the first Degree College in North Sikkim. Thisfinancial year, the State Government has introduced anAnnual Fest Grant of Rs. 5 lakh to each of the Collegesin the State.

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Hon’ble Speaker Sir,

With the transformation of Sikkim as the firstOrganic State of the country and the world by our design,we have opened unlimited opportunities in sectors likeAgriculture, Horticulture and Animal Husbandry.Currently, we are exporting large cardamom, ginger,buckwheat, turmeric and cymbidium orchids. Our aimhas been to fulfil the domestic market and export oursurplus production outside the state.

Under the National Mission on AgriculturalExtension & Training, new emerging organic technologiesare being disseminated to the farmers through training,demonstration, farm schools, exposure visits, formation ofcommodity interests groups and food security groups, etc.

Soil Health Cards have been distributed to 45,027farmers after soil testing based on the CentreGovernment’s guidelines on 10 Hectare grid basis. Thenational target of three years has been completed withinone year, thus making Sikkim the first state in the countryto complete its target ahead of time.

The Sikkim Organic Mission is introducing ane-voucher card system as an effective mechanism todistribute assistances under the Direct Benefit Transfer forensuring that the Scheme’s funds are channeled directlyto the beneficiaries. This would be a first of its kindinitiative in Sikkim and probably in the Country as well.

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Hon’ble Speaker Sir,

For the effective micro management of ruraleconomics, the State Government has established 3651cooperative societies with over one lakh householdmembers. The State Government has also taken a policydecision to have MPDCs at every GPU to cater to thelocal consumers and credit needs of the villages. Priceincentives for cooperatives in the form of transport,marketing and managerial subsidies are available to the174 MPCs.

Hon’ble Speaker Sir,

The State Government has covered all citizens toensure food and nutrition security in Sikkim. There are atotal of 16500 families under the Antyodaya Anna Yojanawho are entitled to 35 kgs of rice at Rs. 3/- per monthand 3,24,081 individuals are under Priority Householdswhich are entitled to 5 kgs of rice per head atRs. 3/- perkg per month.

The left-out beneficiaries including WelfareInstitutions run by NGO’s, Monastic Schools and DestituteHomes are covered under Other Priority House HoldGeneral (OPH) and OPHH Special. At present, they areproviding 9.5 kgs of rice per individual at Rs.11/- per kgper month.

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In addition, we are constructing three new godowns -one at Kaluk, Namchi-Singithang and one at Namthang.The third godown will be constructed under the CentralSector at Uttarey under BADP in 2017-2018.

Hon’ble Speaker Sir,

It is my privilege to place on record that Sikkim wasthe first to promote the concept of eco-tourism, villagetourism and home stay tourism in the country. Thisessential concept promoting man-nature affinity has beenrecognized as a new model of tourism. Today, Sikkim isalready on the national and international tourism map.As you know, 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 bestdestination to visit in the world in 2014.

The Year 2017 has been declared as the Year ofSustainable Tourism for Development, an area ofdevelopment in which Sikkim has already madeconsiderable strides with eco-friendly tourism and thedevelopment of innovative initiatives such as ChaarDham and Tathagatha Tsal. Additionally, Gangtok Cityhas been recognized as the safest tourist destination in thecountry.

Keeping nature at the backdrop, the StateGovernment proposes to promote tourism mainly through

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nature based tourism. Few activities which are proposedinclude, Rock Art Sculpture, Folk Healing Center andYoga Sthan. In the niche Tourism Sector, facilities suchas golf courses, water sports etc, are being proposed.A priority has been given to create mega projects, oneexample of which is the Sky Walk at Bhaleydunga. TheRopeway to Bhaleydunga, currently under progress isexpected to be completed in 2 years time. Today, Sikkimhaving been featured in leading International Journalsand magazines, has become one of the most sought afterdestinations and caters to all types of tourists. Filmtourism is also catching up fast with the support of thegovernment. We are all aware of recent film shoots bypopular Bollywood artistes in the state. A new film‘Pahuna’ is also being shot in the state.

Hon’ble Speaker Sir,

Through sustainable forest management practicesand massive afforestation drives, about 72.60 lakhsaplings have been planted till date under the StateGovernment’s flagship programmes such as Smritivan,State Green Mission, Ten Minutes to Earth andParyavaran Mahotsav. The forest and tree cover of theState has increased by about 4% over the last twodecades from 43.95% to 47.80%. The State Governmenthas also banned the use and sale of disposableStyrofoam products, prohibited the burning of tyres,

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agricultural waste, use of packaged drinking water bottles,bursting of crackers in Sikkim which are first suchprohibitions imposed in the entire world.

The declaration of the Khangchendzonga NationalPark as UNESCO’s World Heritage Site on 17th July, 2016at Istanbul, Turkey, is a testimony to the tireless efforts ofthe government. The Khangchendzonga National Parkhas also been declared as one of the 100 top GreenDestinations of the world for the second consecutive time.

In addition to this, the State Government is alsoproposing to develop a world class Biodiversity Park andEcotourism Centre at Tendong, South Sikkim.

Hon’ble Speaker Sir,

Sikkim is a land of Dharma. Keeping the spirituallife of the State at the center, we have created a largenumber of pilgrimage centers based on people’s faithsand beliefs. I am happy to inform this August House thatvery recently, Sri Viswa Vinayaka Mandir at RundungVillage in Rhenock and Sri Krishna Parnami MangalDham Mandir at Namphing, Bermoik, have beeninaugurated for the citizens.

In addition to these projects, new projects likeStatue of Srijunga at Hee-Bermoik, the Statue ofChenrezig in Pelling, West Sikkim, the Stairway to Heavenat Daramdin, the Mangkhim at Ranka and Thakurbari at

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Gangtok are in the advanced stages of completion. TheState Government also proposes to establish Folk HealersCentre, Sahid Gram and Shakti Sthal at Mungrong.A state of the art, Sikkim State Archives Building hasalso been completed which will house the State Museum.I am happy to inform that the works for the completionof the new Judicial Academy, Chief Justice Bungalow,and a Sub-Division Court at Soreng have also been takenup in a war footing and they are to be completed duringthe financial 2017-18.

The State Government has now prioritized theconstruction of a Ropeway from Pelling to SangacholingMonastery in West Sikkim connecting the landmark statueof Lord Chenrezig, that is near completion, to Pelling.This project along with the Statue of Lord Chenrezigwould be a great value addition to tourism in boostingtourism footfall in the State. The boost in the touristfootfall is very encouraging as Sikkim hosted over 8 lakhstourists in 2016 alone.

Hon’ble Speaker Sir,

The State Government is very concerned with theyouth populace and therefore, has laid special emphasisto skill the youth and to make them employable andself-dependent so that they can lead a life of self-respectand confidence. A separate Department of SkillDevelopment & Entrepreneurship and Capacity Building

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therefore has been setup with its network of the StateInstitute of Capacity Building, Livelihood schools,Industrial Training Institutes, Kaushal Kendras andIncubation Centres for skilling the youth. These initiativesaim at creating opportunities for self-employment, forindustrial wage employment, and community basedemployment as Social Entrepreneurs.

Till December 2016, a total number of 10,151trainees have been trained in sectors such as Beauty &Wellness, Tourism & Hospitality, Apparel, Homestay,Driver cum Tour Guide, Primary Teacher Training etc. AnAtal incubation centre has been approved by the Ministryof Skill Development in Assam Lingzey. Two moreincubation projects for the distillation of lemon grass oilhas been set up in Kerabari, South Sikkim, andTimberbong, West Sikkim, under the Rastriya Krishi VikasYojana.

More than 1200 trainees have been placed in jobsas part of the placement services integrated with skilltraining or through the Skill Festival and Job Melas in thestate. All Industrial Training Institutes, Workshops andLaboratory facilities have been upgraded to provide betterquality of training. Besides the training programmesorganised by the State Institute of Capacity Building inSikkim, Skill Training is currently being imparted undermany Programmes such as the Pradhan Mantri Kaushal

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Vikas Yojana, Deen Dayal Upadhyaya-Grameen KaushalYojana, and the North Eastern Rural Livelihoodprogramme.

In this technology driven world, we have beenconfronted by a new reality and new ways of doingbusiness. Many people are coming forward withinventions and innovations that aim to meet marketneeds in a new way. Many online business giants likeAmazon, Flipkart and Uber have changed the waybusinesses serve people. For example, as an onlinetransportation company headquartered in San Francisco,California, Uber presently operates in 528 citiesworldwide, employing over 7000 people. This company isalso planning driver-less car services by employing highlydeveloped technology.

In Sikkim, we also seek to provide an impetus toour young people to develop new entrepreneurships bylaunching the “Chief Minister’s Star tup Scheme” toprovide for 25% subsidy with an investment of uptoRs. 20.00 lakhs. This Scheme is being launched with theobjective to boost entrepreneurship and encourage start-upventures by providing them with financial support.Initially a sum of Rs. 10.00 crores is being earmarkedduring this fiscal.

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Hon’ble Speaker Sir,

The State Government is working to provide safe,reliable and comfortable travelling facilities to the publicall over the State. The facilities will also benefit importanttowns in the neighboring state. The Transport Departmentis undertaking various new initiatives both in SNT andMotor Vehicles to provide better services to the people.The vehicle fleet has been increased by adding two newAir Conditioned buses as well as four petroleum tankersto meet the requirement of petroleum products in the state.Four new weigh-in-motion- bridges have been setup – twoat Rangpo check post and two at Melli Check post. Theseare under trial stage. All Depots and Workshops are beingupgraded using modern technology through IntegratedDepot Management System. The work in developing anInspection and Certification Centre has started forautomated fitness testing of vehicles. A state level DrivingInstitute at Pakyong and a Regional Driving Institute atKichudumra in South Sikkim have been planned forimproving the quality of driving.

In Motor Vehicle, a total 53,636 vehicles have beenregistered and a about 1,13,018 driving license have beenissued till Jan 2017. Road safety has been given specialpriority through awareness programmes, trainings,amendments in rules, better enforcement and a numberof other initiatives. Ex-gratia payment to the next kin of

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drivers has been enhanced to Rs. 3 lakhs. In addition,31 new Ambulances have been acquired by theGovernment which shall be operated by the Departmentof Health and Family Welfare for road safety. Newtechnology for the registration of vehicles and for issue ofdriving licenses is being applied in all four districts.

Hon’ble Speaker Sir,

The State Government is putting a priority to makeInformation Technology a platform for growth and toimprove governance and administration in the State.A well-defined Information Technology policy is alreadyin place. The State Government has successfully launchede-governance service. The Department has alsocommissioned a disaster recovery plan for the State DataCentre. The project of National Optical Fiber Network isunder progress to ensure connectivity to rural areas,especially upto the BAC level. Mobile technology likeM-Tourism, online payment, e-waste, inner line permittracking system, e-tendering etc. are already in place.Efforts will be made to ensure WiFi services in all majortowns besides providing for video conferencing facilities aswell.

Hon’ble Speaker Sir,

The State Government has ensured social justice toall sections of society which, in turn, has contributed tothe peace and harmony among various communities of

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the State. It is a matter of record that we have gone muchahead of the mandatory constitutional provisions inprotecting the rights of the Scheduled Caste and theScheduled Tribes.

Special care is also taken for children by providingNutrition, Health care and Quality education. TheGovernment has been providing large numbers of socialassistance measures for the socially weaker sections of thepopulation, including persons with disability. TheGovernment is running a Special School for the HearingImpaired and a Special School for the Visually Impaired.The Government also supports the Spastic Society ofSikkim for the rehabilitation and education of childrensuffering from Mental Retardation, Autism, Cerebral Palsyand Multiple Disabilities.

A special focus has also been given by theGovernment for providing quality life to the elderlycitizens of the State. 20,000 Old aged persons belongingto BPL families are provided a pension of Rs. 600/- permonth. Persons who are more than 70 years of age arebeing provided with the pension of Rs. 1000/- per month.

Unfortunately, we have noted increasing cases ofchildren deserting their parents at their elderly age.Therefore, in order to provide a reasonable and decentlife to the elderly in such cases, the State Government has

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decided to construct one Old Age Home each in the fourdistricts during 2017-18. The State Government has alsodecided to introduce a Subsistence grant of Rs. 2,000 forthe senior citizens who are in need of regular nutritionand medicines.

The Government has ensured Social justice andprotection to all the communities in the State bycategorizing them into SCs, STs, Central OBCs and StateOBCs. Scholarships to poor students belonging to thesecategories are provided under the scheme of Pre-MetricScholarship and Post Metric Scholarship, including theAmbedkar Scholarship. At present, 8877 students areavailing various scholarships from Social Justice,Empowerment and Welfare Department.

Hon’ble Speaker Sir,

Women Empowerment is at the heart of ourpolicies to ensure social justice and equity to all. Womenhave historically been a discriminated group andunfortunately, they are still discriminated all over theworld today. In Sikkim, we have made it a priority toensure that through policy, we accord equal rights towomen. At the political level, 50% reservation has beenprovided for women in Rural and Urban Local Bodies.Similarly, a 33% reservation has been provided to womenin the Government Service. A necessary legal frame workhas been created for ensuring legal rights of women and

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their protection by establishing the Sikkim StateCommission for Women. The Government has enactedthe Protection of Women from Domestic Violence Act,2005, and Provision of Sexual Harassment of Women atWorkplace (Prevention, Prohibition and Redressal) Act,2013, which provides legal backing to prevent exploitationof women at home as well as in the work place.

The State Government is sensitive to the specialcare and attention that the womenfolk deserve in oursociety. To ensure a healthy Sikkim, the State Governmenthas always stressed upon preventive and curativemeasures. To move one step ahead, the StateGovernment has decided to introduce vaccination forpreventing cervical cancer for our girl children. Cervicalcancer is the second most common cancer affectingwomen worldwide and the principal cancer affectingwomen in most developing countries where 80 percent ofcases occur. As per one report, 74,000 deaths caused bycervical cancer are reported annually in India, accountingto nearly 1/3rd of the global cervical cancer deaths.

Hon’ble Speaker Sir,

It has been the Government’s constant endeavor toprovide the best working and living conditions to allcategories of the Government employees. To cater to theincreasing requirement of public services, a number ofservice cadres have been reviewed and service rules have

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been amended. This has resulted in the creation of alarge number of additional posts in almost all services.These posts have been filled up by promotions and directrecruitments. The State Government has also introducedthe scheme of compassionate appointment as a welfaremeasure to give employment to the next of kin inreplacement of government servants belonging to group Cand D who die in harness. From 1994 till date, 1417persons have been appointed under this scheme. Inaddition to the existing facilities, the State Government isalso pleased to raise the upper age limit for job seekers to40 years for government employment.

The State Government has constituted a committeeunder the Chairmanship of Chief Administrator,Government of Sikkim, to recommend the revision of pay& allowances of State Government employees in rationalcomparison with the revised Central Pay Structure on therecommendation of the 7th Pay Commission. TheGovernment has also released DA to its employees duefrom 1st July, 2016.

Hon’ble Speaker Sir,

I now present tax proposals for the year 2017-2018.The Constitution (One Hundred and First Amendment)Act, 2016, on goods and service tax has come into effect.Accordingly, the main taxes of the State Government likethe Value Added Tax, Central Sales Tax, Entry Tax, Cess

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and Luxury Tax etc. and also the taxes of theGovernment of India like the Central Excise and ServicesTax, have now been subsumed in the Goods andServices Tax. Now, only the Goods and Services Tax willbe levied in place of all these taxes in the indirect taxregime. Petroleum products and liquor have been keptout of the GST, as of now. The rates of the tax will beuniform on goods and services in the entire nation. Asper the decision taken by the GST Council, the Goodsand Services Tax will be implemented from 1st July, 2017onwards. The State Government has made all necessarypreparations for the implementation of the new taxregime so that the trade and industry of the State do notface any difficulties. E-payment will be made compulsoryfor the payment of taxes.

Hon’ble Speaker Sir,

I shall now dwell on the budgetary profile for thecurrent financial year.

In this budget for the fiscal year 2017-18, a grossexpenditure of Rs. 6364.02 crores has been projected.After taking into account recoveries amounting toRs. 142.20 crores, the net expendi ture comes toRs. 6221.82 crores. The fiscal deficit remains in adherenceto the fiscal management targets set in the Sikkim FiscalResponsibility and Budget Management Act, 2010, i.e. notmore than 3% of GSDP. The contribution from total tax

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revenue is of the order of Rs. 669.51 crores and in thecase of Non-Tax revenue, Rs. 426.46 crores.

The total gross expenditure includes allocationsamounting to Rs. 81.76 crores under the dispensation ofthe North Eastern Council, Rs. 153.66 crores under Non-Lapsable Pool of Central Resources, and Rs. 1326.76crores under Centrally Sponsored Schemes.

I shall now present the highlights of the Budget forthe year 2017-18 with a summarized account of thereceipts 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

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Hon’ble Speaker Sir,

I would like to inform this August House that in theUnion budget, the distinction between Plan and Non-Planhas been done away with from the year 2017-18onwards. This has been done as a measure towardsbringing about major fiscal and budgetary reforms whileretaining the distinction on the basis of Revenue andCapital expenditures. Since the Union and the Stateshave to work together on the methodology, we have alsoadopted the same system from the financial year 2017-18budget.

Furthermore, reforms have also been carried out inthe Centrally Sponsored Schemes as per the decision ofthe Government of India from the provision of 2017-18.The existing 66 Centrally Sponsored Schemes have beenrationalized into 28 umbrella schemes.

Hon’ble Speaker Sir,

The proposal to rollout the Goods and Services Taxby 1st July, 2017 has been further supported by the GSTCouncil approving the tax on 18th February, 2017. TheCentral Government has assured to compensate anyrevenue loss in the event that revenues of the States arenegatively impacted.

The Gross State Domestic Product (GSDP) atconstant prices recorded a growth rate of 7.62 percent

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and a growth rate in the Per Capita Income of 6.58percent in the year 2012-13. The major socio economicindicators for the State show commendable improvement.The poverty ratio has declined to 8.19 per cent ascompared to the all India average of 21.92 per cent in2011-12. Sikkim will be literate State by 30th June, 2018.

Hon’ble Speaker Sir,

The Government of India has nominated me asone of the members in a 13-member Committee of ChiefMinisters convened by the Andhra Pradesh Chief Ministerto promote digital payment systems targeted towardsbringing transparency and financial inclusion and toprepare a roadmap in this regard. The Finance Revenue& Expenditure Department is working to ensure that allGovernment receipts and payments are paid and receiveddirectly through the digital mode.

Hon’ble Speaker Sir,

Sikkim, the 22nd State of the Indian Union, tuckedhigh in the Himalayas, has a distinct geography, andhistorical and socio-cultural characteristics. We have ourown strengths, limited though, as a State also withshortcomings which we have aimed to overcome throughour policies. Therefore, when we led the people’smovement and formed the government in 1994, it was, insome respects, a fresh beginning that we, the Sikkimesepeople were reborn into new knowledge and new action.

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Today, when I look back, we have effectively joined ourfellow Indians in our march towards development andprogress.

I am equally happy to share that Sikkim hasbecome the best state in the country in almost all sectorsof development. The Sikkimese people are the producersof peace, happiness, clean air, clean water and clean foodthat the world is seeking everywhere. I am happy to knowthat the Sikkimese people are the happiest people inIndia

Due to the evolving concepts of development andthe emerging tools to achieve these evolving goals, wehave to create an eco-system where our young peoplecan move ahead on the basis of Imagination, Creativityand Innovation. In Sikkim, we have applied a perspectiveof innovation to design our development programmes sothat they ensure that our youth are ready for the newworld.

As a nation, we still have a long way to go as Indiaonly ranks 66th in the Global Innovation Index and 97th

on Global Index of Talent Competitiveness.

Looking at the global developmental trends and ourcomparative national global standing, we understand thatSikkim has great responsibility to make its contributiontowards nation building, be it as a promoter of peace, an

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innovator of clean and green development models,addressing global warming or as a strong custodian of thecountry’s interest as a state surrounded by threeinternational borders.

Hon’ble Speaker Sir,

During the last 23 years, we have transformedSikkim into the best State in the country. It is a matter ofpride for me to mention that Sikkim which entered theplanning process of the country much later has emergedas a leader in many sectors.

We are the first open defecation free state, totalsanitation state, poverty free state in the Country. Ours isthe State that provides free education, free electric andwater connection in villages, provides total coverageunder Old Age Pension, the first gender discriminationfree state so on and so forth. Ours is the first State whichis free from any religious discord, free from discriminationon the basis of caste, creed and faith. Sikkim is the firststate to ensure full security cover to the LGBTcommunities in all socio-economic and educationalspheres.

Sikkim as income tax Free State is a rare examplefound anywhere in the world. Sikkim is the only state inthe world with 13% employees against the totalpopulation under government sector which is the highest

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percentage ratio in the world. Equal provision is availablefor reservation in government employments and otherrural and urban local bodies for all sections ofpopulation. Now with the full conviction, we are movingahead to make Sikkim the best State in the world.I re-dedicate our commitment to achieve this grandmission so that Sikkim and the Sikkimese people are ableto provide positive message to the world community.People within and outside the Country look up towardsus with great respect and reverence. From today onwards,we yet again march ahead to fulfil our goals based onour sustainable development policies to benefit the peopleof Sikkim. Sikkim has already become the best State inIndia. Now let us work together to make Sikkim the bestState in the World.

Hon’ble Speaker Sir,

With these words, I commend the Budget for theyear 2017-18 to the House for its consideration andapproval.

Thank you,

Jai Hind.

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BUDGET SPEECH

OF

THE HON’BLE CHIEF MINISTER OF SIKKIM

AND

THE MINISTER IN-CHARGE,

FINANCE, REVENUE & EXPENDITURE DEPARTMENT

ON

16th MARCH, 2017

GOVERNMENT OF SIKKIM