Hon’ble Speaker Sir,
Hon’ble Members of the Legislative Assembly, Let me first extend my warm
season’s greetings to the Hon’ble Speaker, Hon’ble Members of this
August House, the people of Sikkim, the officials and the distinguished
members of the civil society and media present here. This is the first
full budget my government is presenting after we secured the mandate of
the people for the third consecutive term. I am confident that this
budget will herald greater prosperity and all round progress for the
people making the State as the most forward looking, robust and
sustainable in the country.
I would also like to record my sincere appreciation to the people of
Sikkim for their spontaneous show of compassion, support and generous
contribution towards rebuilding the hopes and shattered lives of the
hundreds of Tsunami victims in the coastal regions of the country. May
the Almighty give to the affected fellow brothers and sisters the
strength and resilience to overcome the colossal loss and begin life
anew.
It is delightful to note that the Union Government, pleased with our
development actions and performance, has allocated Rs. 500 crores to the
Annual Plan for the year 2005-2006. The August House will also be
pleased to note that the new Planning Commission Members led by Dr.
Montek Singh Ahluwalia remained very impressed by both our performance
and achievements. At the same time, the new team in Planning Commission
has a much greater expectation from us for further consolidation of our
development process. And this a major challenge for us in the State.
The State Government is fully committed towards fulfilment of dream to
make Sikkim model state by creating new development dynamics and
initiating newer and more competent strategies to accomplish our
mission. Having emboldened and enjoyed people’s faith and confidence all
these years, let me assure this August House that we shall spare no
effort to rededicate our resources towards fulfilment of the pledges as
enshrined in the party manifesto. The development strategy and the
policies to be adopted by my Government, will be so determined that the
aspirations of the masses are fully addressed.
Hon’ble Members will be pleased to know that as per inter-state
performance ranking made by the Planning Commission, Sikkim is
positioned among the top ten in the country. With a growth rate of over
8%, which is one of the highest in the country, we are now looking ahead
at a target to achieve a double-digit growth index by the end of the
10th Plan. Amidst all the accolades and appreciations at the regional
and national level, we cannot afford to remain complacent. It is
necessary to carry forward and consolidate the gains we have
accomplished so far and also to effectively harness our untapped natural
resources to our advantage.
In respect of every sector of development infrastructure social and
economic- we are already in the process of rolling out distinct road
maps that will facilitate implementation of developmental activity with
objectivity and a clear sense of desired direction. We will subscribe to
a natural resource based approach in our development strategy duly
underlining considerations for environmental protection and
developmental sustainability. The efficiency of our development policy
framework should not only be appreciated from the instances of economic
progress in the material sense of the term but also in terms of the
level of mental and emotional well being enjoyed by the people.
In our development strategy, participative planning and implementation
has been the keynote policy prescription. Efforts are being made to
facilitate creation of an effective and vibrant Panchayati Raj
Institution through greater decentralization and devolution of power at
the grass-root level. My Government believes in the principle of
people’s empowerment as an enabling means to bring about a bottom up
approach, which are localized and reflect the felt needs of the people
at the grass root. The process of decentralization has been
institutionalized and sustained efforts are being made to strengthen the
administrative machineries at the grass root level. To support the
institutions of the Panchayati Raj, the entire process of establishment
of 30 Block Development Offices covering the entire State has been
started. Block Development Committees have also been constituted to give
direction to the village level functionaries to effectively participate
and function in the development administration under the decentralized
regime.
As a major initiative in streamlining the Monitoring and Evaluation
system, creation of a separate Directorate is in the offing. This
machinery will facilitate qualitative improvement in the overall
planning and implementation process. Preliminary steps towards
implementation of this system have already been initiated in all
departments through I creation of a separate cell for Monitoring and
Evaluation within the respective organizational structure.
My Government is seriously committed to initiating necessary
administrative measures based on the fiscal reforms policy announced by
the central government. As part of our commitment under the Medium Term
Fiscal Restructuring Program, the State Cabinet has affected a total ban
on further creation of posts and has also approved signing of the MOU
with the Government of India. The Asian Development Bank has been
enlisted to provide technical assistance to the State in formulating a
comprehensive paper for implementing an effective reforms policy. The
ADB-approved Technical Assistance on Capacity Building for Fiscal
Reforms in Sikkim is aimed at designing effective methods to improve the
State’s finances and to build the necessary capacity to implement and
sustain these measures. The National Institute of Public Finance and
Policy have been selected as the Consultant in view of their past
association with the State in the preparation of The People’s Vision
Document and the Sikkim Development Report. The present assignment would
help in improving the State’s finances and prepare the State to enact
the Fiscal Responsibility and Budget Management Act. I would solicit
full cooperation and active support of the Hon’ble Members on the fiscal
reforms front.
It is time for us to reorient our approach and strategy on our fiscal
management with a clear objective of making Sikkim into a revenue
surplus State. We indeed occupy an enviable position that with the rich
natural resources at our I command, Sikkim can surely emerge as a model
State in the country. We have set a target of generating internal
revenue of Rs. 1800 crores by the year ending 2015.
I propose to broaden the State’s internal resource base by introducing
new avenues of taxations. In fact, we will make all-out efforts and find
out ways and means to enhance State’s revenue. Apart from some such
measures, user charges for various services will be examined
specifically in respect of those categories of people who have the
capacity to pay.
Besides the huge subsidies that go into the education and food sectors,
there are varieties of other subsidies which have been extended by our
government for long. Subsidies have a deep social and economic
philosophy behind it. It has been evolved over the years as a means to
inject egalitarianism in the State through the state intervention.
However, it should not be treated as something that the government can
extend indefinitely. As the state does not have many alternative sources
of resource mobilization, it will make the State highly dependent on the
sources outside the State. Each household in Sikkim should be
persistently sensitized and educated about the need to extend supports
only to the people and household who really deserve it. Hence, we may
have to seriously consider the question of tapering off subsidies and
diverting the funds so released to other productive activities directly
benefiting the people.
Unemployment-our prime concern.
Unemployment is one major concern of my Government. The Chief Minister’s
Self Employment Scheme had been launched with a fair degree of success.
To complement this effort, the scheme of Kaushal Vikash Kosh (Skill
Development Fund) had also been commissioned with the basic objective of
providing professional trainings to the educated unemployed youths. With
employment avenues virtually saturated in the Government sector, our
focus needs to be directed towards diversifying and creating alternative
avenues of employment outside the government. We are seized of the
problem in this regard and facilitating a new employment alternatives by
improving the investment climate in the State and encouraging the
participation of NGOs and private sector development partners to help
generate additional employment opportunities.
Employment Abroad
We are all aware that there is an employment boom in certain specific
sectors in many developed countries in Europe, Japan and North America.
These employments are created both because of the development pace and
also because of the ageing population in these countries. On the other
hand, many, of the developing countries like Philippines, Sri Lanka and
Thailand have really made use of these employment opportunities. In
India, States like Kerala, Punjab and Gujarat have capitalized on such
situations. Sikkim has to exploit this huge employment market abroad
both because we have growing number of skilled people and also it will
bring wealth, exposure and experience to the State.
Most importantly, the opportunities are there for our women in the
profession of nurses and other health related activities. They are
paying handsome salaries to the qualified people. We have a tradition of
caring for old and sick. We therefore, culturally also fit very well in
this employment market. At the same time, we are fully aware of the
rackets that characterize these employments abroad. We would not like to
be the victims of such rackets.
Therefore, our government is setting up a small unit in the Department
of Personnel for the promotion of employment abroad. This unit will
bring information about the possible intake in various sectors of the
employment market abroad and would disseminate the same on a regular
basis. This unit will also act as a consulting unit to help in legal and
other formalities for a person who is preparing to go abroad for such
employment. This unit will very closely work with the office where the
Skill Development Fund will be located.
Tourism Development
It is evident that tourism has emerged as the pivotal economic activity
in the State. Our emphasis will continue to address conservation of
ecology and environment, culture and natural heritage. We have already
promoted the concept of village tourism so that the ethnicity of our
rich culture and tradition can be preserved and promoted as a marketable
product. My government has also announced the policy to facilitate
development of one model tourism village each in all the constituencies.
The underlying objective of this policy is to promote ethnic tourism and
mobilize the rural masses particularly targeting the educated unemployed
youths, encouraging them to participate as key stake holders in the
tourism trade. My government has also taken a decision that one tourist
spot will be identified in each Gram Panchayat unit which will be
developed as a centre for tourist interest. Besides, the State
Government will identify natural water falls and hilltops to develop
viewpoints and eco-friendly parks and gardens to attract more tourists
in all parts of the State.
Keeping in mind the tremendous growth projected in the tourism sector, I
have deemed it feasible and worthwhile to propose establishment of an
Institute of Foreign Languages in the State. This facility will enable
our youths to acquire added qualification in securing jobs particularly
in tourism related and hospitality sectors.
Our Government has been focusing on tourism as a major source of
employment generation. This fiscal year, we would like to focus on some
crucial issues:
Both natural and cultural heritage of Sikkim are major attractions for
the tourists. They both constitute vital organs of eco-tourism. So
heritage conservation and promotion are our basic thrusts. We have
already identified White Hall the place once occupied by John Claude
White the first political officer in Sikkim after it fell under British
Superintendency in 1887. We are going to renovate the entire building
without disturbing its historical architectural and aesthetic qualities.
We would like to convert it as a heritage home with museum, library,
archives and a discussion room.
Let us recall, it was late John Claude White who prepared the first
budget of Sikkim in 1889. The first budget showed a revenue surplus of
Rs 5367. The total revenue generated was Rs 20336 and total expenditure
was Rs 14969. The land, forest and excise were the major sources of
revenues. Public works, allowance to Raja and Agriculture were the main
expenditure heads.
Tourism is largely a business of networking. Many countries that have
really done well in the tourism sector have very well networking across
the globe. They are rich in disseminating information, fast in
communication and efficient in handling tourists. There are two basic
concept of tourism promotion i.e. tourism creation and tourism
diversion. Sikkim has to work on both these counts. We shall have to
create our own attractions to bring tourists exclusively for Sikkim. And
the other is to divert the tourists that are going to other tourist
spots. For instance, there are a large number of tourists who visit
Darjeeling district and also keen to visit Sikkim. But because of
various reasons mainly poor information and communications, they are not
able to do so. We would like to harness these potentials.
Therefore, our government would now open a Tourist Information Centre in
Darjeeling basically to cater to the potential tourists. We expect this
to enhance the level of tourist arrivals in a big way.
Our major concern has been the seasonality of tourism. That is, we have
peaking seasons of tourists in April and May and our winters are dry.
This not only creates seasonal unemployment but also keeps the hotels,
taxis and many other tourist related activities without any business. In
order to attract more domestic and foreign tourists, we would now give
special emphasis on winter tourism. This includes winter festivals,
winter discounts and also promotion abroad.
Agriculture Development
As the economic livelihood of the people of the State is predominantly
agro-based, it is observed that due to increased developmental
activities, there has been substantial reduction in the net cropped
area. Consequently, the contribution of this sector to the Net State
Domestic Product stands at 23% today as compared to 45% in 1990-91. This
calls for a reorientation in our development strategy whereby a
comprehensive package of measures will be undertaken in order that the
productivity of the land per unit is substantially enhanced. In fact,
the people will appreciate our step to go for mass cultivation of cash
crops and other commercial crops such as mandarin orange, pear, passion
fruits, squash, mushroom, floriculture including medicinal and aromatic
herbs and plants, all of which never measured up traditionally as
principal economic activities in the state.
This year our main emphasis on the agriculture sector would be three
fold.
Firstly, we would like to locate and introduce newer technologies in a
number of agricultural and non-agricultural activities in the rural
areas. As stated in the last interim budget of 2004 an exclusive fund
for this purpose is being created. This will be known as “Technology
Induction Fund” under which varieties of newer technologies will be
inducted through various development agencies. For this fiscal year, I
announce a package of Rs 1.25 crore for this fund which would be
conducted by the Department of Rural Management and Development along
with the Department of Science and Technology. Secondly, we expect the
Agriculture Export Zone to be the main marketing agency of the farmers
in Sikkim. Let me frankly state that though the project of setting up of
AEZ has been given a priority by the government because of certain human
and technical reasons. We have not been able to realize the same. This
project has a lot of promise and can really make a difference in the
State's performance in the agriculture sector. I would firmly appeal to
the Department concerned that this project must be realized physically
in the coming fiscal year. Our Government has always been of the view
that for such an important project we should not have the resource
crunch.Thirdly, in order to give a fillip to goal of making Sikkim a
Total Organic State by 2009, we would now create a special fund for
this. We plan to do it in comprehensive manner with multiple strategies
and techniques. The government plans to hold a range of meetings across
the State to make farmers and people aware about the organic farming.
Farmers will be sent for training and other field-led exposures both in
India and abroad to enable them to increasingly and smoothly shift to
organic farming. We would also invite experts and institutions who have
successfully been doing organic farming to our State for both supporting
policy formulations and interactions with the farmers. If we are able to
move towards organic farming we can cater to a specific bourgeoning
market both within and outside the country. This will also make our farm
produces competitive in the era when the WTO related liberalization have
led to the removal of restrictions in the imports of agriculture
products. Therefore, I propose to allocate Rs 1 crore for the promotion
and implementation of our mission to become the first Total Organic
State in the country.This fund will be jointly conducted by the
Department of Agriculture and Department of Science and Technology.
Animal Husbandry Development
In the domain of the Animal Husbandry and fisheries sector, thrust will
be given to improving the productivity of livestock's with a view to
making the State self-sufficient in so far as livestock products are
concerned. Our strategy will be aimed at concentrating our development
efforts in selected areas of livestock's development such as cattle,
poultry, piggery and fisheries. Owing to sizeable concentration of
defence establishment in the State and the ever-increasing tourists,
efforts will be made to encourage our farmers, particularly the
unemployed youths, to venture in the large-scale commercial livestock's
farming in the State. Apart from the required training and extension of
services, soft credit from financial institutions will also be arranged
for the prospective farmers.
Industrial Scenario
The contribution of the industrial sector in the State's economic
development has not been so significant. However, my government has been
making efforts to lure major investors by creating an investment
friendly climate supported by a sound investment policy framework which
provide for an enabling legal framework, congenial environmental
condition including attractive fiscal incentives. Certain areas
identified for private sector investment participation include tourism
related industries, transport and trade related services, software
development and electronic-based industries, pharmaceutical industry,
health care and education, hydel power, horticulture, food processing,
handicraft and handloom. The basic infrastructure to woo private sector
investment in the State need to be further strengthened. We are in the
process of developing an Industrial Growth Centre at Marchak covering an
area of about 25 acres. So far five investment parties have been
allotted land plots for establishment of industrial units. I have
already taken personal interest and initiatives in organizing a series
of meets to interact with major industrial houses from all over the
country with a view to inviting investments in the State. These efforts
have yielded positive result and as of today. We have project proposals
from major business houses for prospective investment in areas like
tourism, hydel power, education, pharmaceutical and food processing
sectors.
Nathula Trade
The reopening of the cross-border trade through Nathula will unfold new
horizon and opportunities for commerce and trade in Sikkim. We would
like to use the prospective trade with Tibet as an economic instrument
to develop our state. All these developments would entail a sense of
preparedness on the part of the government to take necessary initiatives
to develop the required infrastructure. In this regard, our priority
would be the development of an alternative National Highway to provide
better connectivity between Sevoke-Gangtok-Nathula. The other major
consideration will be the completion of the first Airport of Sikkim at
Pakyong. With an investment friendly industrial policy of the State
combined with the extension of a package of the benefits under the
dispensation of the North East Industrial Policy, it is envisaged that
investment likely to be generated in the industrial sector will be of
the order of Rs. 400 crores in the Tenth Plan. While rehabilitation and
revival package in respect of the existing public sector undertakings
will be considered, my government will be open to disinvestment of sick
units on the basis of merit.
Hydel Power generation
Under the power sector, my government would work out extensive
investment profile to utilize 100% of our hydro-power potential. We have
already initiated projects in collaboration with reputed Power
corporations to develop the stretch along the Teesta basin. I am happy
to inform this House that Detailed Project Reports (DPR) in respect of
the Teesta Stage II, III, IV and VI are already completed and
pre-feasibility reports are ready in respect of various other mini hydel
projects. In fact, seven mini hydel projects will be undertaken by the
state government on its own and completed within three years, generating
40 MW of electricity.
Simultaneously massive up gradation and improvement of the transmission
and distribution network are being taken up under funding from the DONER
and Non Lapsable central pool of resources (NLCPR)the 132kv transmission
line linking Rongli to Meli and establishment of a 100 MVA /32/66 KV sub
-station cum switch yard at Meli have also been completed. These
development will facilitate integration of skim with the transmission
network in the eastern region. The 132 KV transmission line will enable
the state to tap its allotted share of central sector power from the
eastern region which is of the over of 73 mw and also enable export of
Surplus power from the state. Further progress is under way at lower
Lagyap power station where the construction of a 100MVA/132/66KV
sub-station is being taken up essentially as an infrastructural support
for the upcoming industrial units in the State. We are venturing into
and as of today, we have already awarded eight projects to commitment to
augment power generation of 4000 mw by 2015 under the national hydel
capacity addition programme will be achieved.
Human Resource Development
In the sphere of human resource development, our thrust will continue to
be directed at bringing about tangible improvement in the quality of
education. We firmly believe that the level of socio-economic progress
of a State and the quality of the life of the people primarily depends
on the level of literacy prevailing. The literacy rate which was 51% in
the 1994 now records about 70% with a sharp decline in the drop-out rate
25-30%. In order to make higher education widely and easily accessible,
we are going to establish colleges in Rhenock and Geyzing apart from a
Science College in Soreng. Given the salubrious environment and peaceful
atmosphere prevailing in the State, there is abundant scope for
developing institutions of higher learning in the state. My Government
will take necessary initiatives to facilitate these developments through
private sector participation.
We have a long term vision to set up a Central University in the State
with learning centres basically focusing on hill and mountain studies,
eco-tourism, bio-technology, livestock, natural resources and
knowledge-resource management. Some of these include Himalayan Centre
for Adventure Tourism, Mass Communication, Advanced Centre for Medicinal
Plants and Biotechnology, eco-friendly tourism management centre,
Institute of Fashion Designing etc. The coming up such institutions will
generate sizeable demand in goods and services besides creating
employment opportunities in the State. There is a clear realization in
our mind that next to Hydel Power and Tourism sectors, creation of a
network of educational institutions will have a far-reaching impact in
increasing the tempo of economic development of the State.
Keeping in view the emerging demand for technical manpower particularly
in the service sectors, due care will also be given in promotion of
vocational education. The two polytechnics which were set up under World
Bank assistance have been running since 1999 and construction of
physical infrastructure for these two institutions is in advance stage
of completion.
Sikkim Research Fellowships
In order to raise the standard of higher education and also to build
intellectual capital in the State, our Government will now sponsor
Sikkim Research Fellowships in seven eminent Universities located in 7
different corners of India. These will include Calcutta University,
Chenai University, Banglore University, Jawaharlal Nehru University,
Mumbai University, Banaras Hindu University and North Eastern Hill
University. These fellowships will be equivalent to University Grants
Commission's Junior Research Fellowships. These will be primarily used
by the Sikkimese students to do research preferably on issues related to
Sikkim. We propose to name these Fellowships after the eminent
Sikkimese. If we are able to initiate the process in this academic year,
by 2010 we expect to have at least seven PHDs in Sikkim in various
streams and after that every year we will have a fresh crop of scholars
and academics. I therefore, invite our young scholars to take note of
this opportunity.
I propose an allocation of Rs 19 lakhs for institution of these
fellowships in coordination with the respective Universities. The
Department of Human Resource Development will carry out this task
urgently.
We have the unique distinction of providing free education to our
children in the country. For children at the elementary level, we have
provided everything free of cost primarily to encourage more enrollment
and less drop-outs. To further our cause, the Government shall
henceforth make provision for free supply of school bags and rain coat
to all the primary students in the schools.
Health Security
In the area of medical and health care, we have taken new initiatives by
launching the scheme of providing Universal Health Insurance Cover for
people below poverty line. For this purpose, the State Illness
Assistance Fund has been established with the Central Government
matching 50% of the contribution made by the State. This corpus fund
will be used for providing monetary assistance to BPL patients in need
of specialized treatment. In addition, the Mediclaim scheme for
government employees is also under active consideration of the
Government. We have one of the best rural health care infrastructure in
the country and have achieved the national norm of establishing one PHC
for a population of 20,000 and one PHSC for population of 3,000. The
central facility at the STNM hospital is already upgraded and linked up
with the AIMS through telemedicine connectivity. The basic health
indices of the State depict an encouraging trend. In respect of infant
Mortality Rate, it is heartening to note that the IMR has dropped to 34
deaths per 1000 live births as compared to 60 in 1991. The sex ratio in
the age group of 0-6 years stands at 963 as compared to the national
average of 927. While the total fertility rate is 2.7 as against the
national average of 2.85, the index for immunization coverage is 89.7%
compared to the national average of 80%. We are the first state in the
country to undertake Hepatitis B vaccination for children free of cost.
We believe that the essential attribute of a healthy human being depends
on a balanced combination of mental alertness and physical fitness. My
Government will carry for forward the dialogue with the Government of
India for construction facilities. The teaching hospital under the
Manipal Inststitution of Medical Science is being strengthened under the
management of the Sikkim Manipal University and the long imbroglio with
the Medical Council of India with regard to clearance for the Medical
College has since been resolved.
Value Added Tax
A policy decision has been taken by the Government of India to introduce
value Added Tax (VAT) across the country with effect from April 1, 2005.
This is in pursuance of a consensus decision arrived at by the Empowered
Committee in which Finance Ministers of all States and Union territories
are represented. Accordingly, the State is all geared up to implement
this scheme from the scheduled date and for this purpose legislation of
VAT has also been framed. The rationale behind the introduction of VAT
is very obvious. Firstly, under the existing system of sales tax, there
is multiplicity of tax elements in the form of turnover tax, surcharge
on sale tax, additional surcharge, central sales tax, entry tax, octroi,
etc. all of which create a cascading effect on the final cost of goods
being sold. Under the VAT regime, there will be harmonisation of sales
tax rates through the adoption of floor rates that will be uniformly
applicable throughout the country. This will also prevent sales tax wars
among the States and Union Territories. Secondly, the VAT system will
have in-built mechanism officials. Under the scheme of things, the
dealers will be entitled to input-credit claim, against purchase of
inputs while filing their sales tax returns. Besides, small business
enterprises will be kept outside the purview of VAT and thereby free
from tax hassle. Thirdly, the consumers will also stand to benefit under
the VAT system in term of goods being buyable at lesser cost due to
abolition of multiple taxation. Fourthly, the introduction of VAT will
contribute significantly in reducing leakage and tax evasion thereby
improving better revenue collection for the Government. And lastly the
neutrality of the tax factor in the production process that will be
brought about under VAT encourages horizontal expansion of industries in
the form of growth of ancillary units. With the introduction of VAT,
there will be some degree of revenue loss from sales tax in the initial
phase. To off-set this, the government of India has agreed to compensate
for three years on a diminishing basis with 100% on the inception year
followed by 75% in the second year and 50% in the third year. The Union
Finance Minister has released the White Paper on VAT in January 2005 and
with this the path has been cleared for implementation of VAT.
State Human Rights Commission
Hon'ble Members will appreciate that the task of running the Government
is Herculean. This is particularly so when you have set a high standard
of both norms of governance, political pronouncements and policy
interventions. We have upheld all the democratic values and have
respected human rights and dignity of every one with equal zeal and
fervour. In the government also we have been the strongest votary rule
of law. Every one is equal in the eyes of law.
Therefore, in continuation of the announcement of the last budget made
in September 2004 we now would like to appoint the Sikkim State Human
Rights Commission and also set aside a separate fund for its
functioning. Let me again repeat that this Commission would exami8ne the
cases of human rights violations including by the government, political
parties, social organizations and religious groups in the State and
check the growth of such practices through appropriate legal means. Out
Government has been the harbinger of democracy in Sikkim. This would
further strengthen democratic institutions and promote democratic values
in the state.
Municipal elections.
Preparatory steps for municipalization of urban areas have already been
initiated and Government is being fully geared up to hold elections
shortly. This is a constitutional requirement under the 74th
Constitutional Amendment. Demarcation of the geographical jurisdiction
of urban settlements has been carried out. It is proposed to set up
local urban bodies in townships with more than 5000 population and with
area covering at least 50% non-agriculture land. The Municipal Act will
also be formulated which inter-alia will ensure that the local agenda
for environmental protection is fully addressed. Other aspects that will
be incorporated in this legislation encompass issues such as financial
sustainability, transparency and accountability, local taxes, checks on
corruption etc. The Act will be so designed as to enable the local
bodies to function independently and also ensure that they are people
responsive, efficient, effective and financially sustainable. Further it
will be ensured that the local bodies are made in manner that they are
fully representative of all communities and that provision for one-third
reservation for women is duly ensured.
Hon'ble Speaker Sir, I am aware of some impending criticism that may be
leveled against us by those who oppose change and reforms and those who
are eternally obsessed with criticizing others. However, we all are
aware of the fact that without laws and regulations human behavior
cannot be regulated evenly to establish a decent environment to live in.
Indeed, one great scholar has once said, "Laws are made by man for man.
Law has not created man but man has created law for his own happiness".
Youths: Our prime Resources
Youth in the State are our prime resources. They are our future. They
would determine our destiny in the next 20-60 year my government fully
appreciates the role and potential of our youth and the contribution
they are capable of making in the nation building process. Our
government has been very extensively and consistently working for all
round development of our youth. We would like to make them as our
development focus. This is why we have declared the year 2005 as the
youth revolution year in Sikkim. We want all our youth to be gainfully
employed. We want to create environment and opportunities for our youths
to harness their talents and latent capabilities. We want our youths to
be the leader both nationally and internationally in various fields. We
want our youths to promote our own culture while learning positive
aspects of other cultural practices.
The potentials and resources of our youths need to be fully mobilized
and channelized in a constructive manner and the government will need to
create an enabling environment for the youths to be enlightened,
introspective and independent citizens who can recognize their
predominant role in shaping the destiny of the country. We want to
promote youth force in the State through different capacity building
trainings in areas like tourism and trade related business, hydel power
and biotechnology. It has become increasingly necessary to do so, lest
all opportunities so generated would go untapped and unutilized in the
absence of trained manpower.
My Government aspires to make Sikkim a human paradise by building a
knowledge-based society so that the State will gradually emerge to be a
knowledge resource capital State. The role of out youths as active and
competent partners in the context of the multiplicity of economic
players involved in the state's socio-economic development is
indisputable. In today's highly competitive world, our youths can
ill-afford to be dependent on easy handouts from the government. Out
youths need to be more proactive and interactive with institutions and
technology houses thereby contributing to the nation buildings.
In the past, we have launched various programmes including in education,
sports, health, employment, tourism, intellectual activities, industries
and many other areas that directly impinged upon the youth and their
aspirations. We have created a large number of job opportunities for the
youths both in the governmental and non-governmental sectors.
We launched Chief Minister's Self Employment Scheme (CMSE), Skill
Development Fund, Incentives to Promising Sportspersons and various
other schemes. We would continue all these programme with more vigour
and speed.
For the benefit of enterprising and hardworking youths, we are now
further introducing the following specific programmes for the youths.
i) Career Development Fund (CDF) of Rs 2 crore which can be accessed and
used by all the graduate unemployed students/youths of Sikkim. The CDF
will be provided as a one-time assistance for coaching classes and other
counseling services anywhere in the country with an upper limit of Rs
6000/- per person. It will be conducted by a State Level Committee under
the Department of Personnel which is being soon set up. Students
desirous of making use of these funds could do so from March 2005
onwards.
ii) CMSE Programme Phase II will be launched in this fiscal year. Under
the Scheme, the government would encourage youths to take up all kinds
of productive schemes with three-fold objectives. Firstly, all such
schemes would focus on generation of more employment avenues for our
people and secondly they would also carry forward our mission to develop
our state in its entirety. And thirdly, together with creation of
employment the programmes will be a stable source of additional revenue
generation for the State.
iii) Sikkim Youth Technologists (SUTs) Programme with Rs 1 crore is
primarily for those entrepreneurial youths who would like to upgrade
their technical and technological skills in very specific fields.
Sikkim in NEC
The inclusion of Sikkim in the family of the North Eastern States has
opened a new chapter in the socio-economic development of the entire
region. This union will not only facilitate cross-regional partnership
and meaningful cooperation which will promote mutual benefit among
member states but will also enable member states to achieve a strong
sense of solidarity. So far the North East Council has sanctioned
projects involving an investment of about Rs. 25 crores. The State
Government is now taking appropriate measures to formalize all the
required institutional linkages with the Council. We have posed a shelf
projects involving an investment of about Rs. 235 crores to be Council
for consideration. We fully recognize the significance of the North East
region in India's Look East Policy particularly in the context of the
geographical contiguity of the sub-region with Bangladesh, Nepal Bhutan,
Myanmar, Thailand, Malaysia and Singapore.
Sikkim - an oasis of peace
The Stability of a Government provides the right condition to facilitate
economic progress and development of any state. The law and order
situation in the state continues to hold an excellent record. My
Government takes pride in the fact that we have been able to provide a
comprehensive security cover for the state and the entire country in
terms of ensuring environmental security, human security and defense
security. Our police force have always displayed a high degree of
alertness and vigil and have been swift in successfully averting any
situation of a fall out in the law and order front. However, being a
safe haven, our state is vulnerable to outlawed outfits. We are fully
conscious of these threat perceptions and will continue to remain on
high alert. Apart from militant outfits belonging to the ULFA, KLO and
NDFB, we are also not oblivious of the threat triggered by the political
development in the neighboring country of Nepal. All these developments
entail massive upgradation and improvement in our overall intelligence
network and modernization and strengthening of our border management
system. I have posed these sensitive issues to the Union Home Ministry
and during the recent meeting of the North East Chief Ministers under
the Chairmanship of the Union Home Minister in Guwahati, I had the
occasion to reiterate our demand for a 'peace bonus'' of Rs 1000 crores
for Sikkim which will essentially be utilized to beef up our internal
security system and undertake a comprehensive modernization and
upgradation of our infrastructure.
In my presentation, I have highlighted some salient features of the
budget and outlined the broad strategies and policy thrust envisaged in
our developmental profile. Coming to the finer details of this budget
that I now present before this august House, I would like to briefly
apprize the Hon'ble Members on the scheme of financing the total
budgeted expenditure for the year 2005-06 amounting to Rs 2246.79 crores
of which an amount of Rs 500 crores is accounted under the Plan side and
Rs. 1504.85 crores under the Non-plan account. Out of the plan
allocation of Rs. 500 crores, an amount of Rs 30 crores has been set
aside to tide over the non plan gap. The total budgeted expenditure
above includes provisions under Centrally Sponsored Schemes,
Non-Lapsable Pool, North Eastern Council as well as recoveries which
will be adjusted subsequently as reduction in expenditure. These
projections have been arrived at with due consideration being given to
the various packages of policy intervention that have been proposed by
my government on the fiscal front. We are deeply committed to
implementing major fiscal reforms and to the observance of outmost
prudence in fiscal administration. As already mentioned and rationalized
restructuring and expanding the tax base as also by instituting
appropriate measure to narrow down revenue loss caused by tax evasion.
The scope of augmentation of internal revenue form various non-tax
sources is considerable and keeping that in mind, conscious steps will
be taken to identify newer sources of revenue collection. Wherever
feasible, user charges will be introduced with due care being given to
bring about and ensuring qualitative improvement in the standard of
services.
The broad details
of schemes of financing the annual plan size of Rs. 500 crores has been
summarized below:
|
1 |
State's Own Resources |
Rs. 69.47 crores |
|
2 |
Central Assistance |
Rs. 430.53 crores |
|
3 |
Aggregate Plan resources |
Rs. 500.00 crores |
The figures
representing the State Own Resources include an amount of Rs. 21.49
crores as contribution form Additional Resource Mobilization measures.
Hon'ble Members will, therefore, appreciate the inevitability on the
part of the Government to enforce conscious measures on the fiscal
reforms front in order to fulfill our commitment as regards to the
agreed scheme of financing of the State Annual Plan size of Rs. 500
crores. The other component of the State's Own Resource Estimate include
Rs. 20 crores from the State Provident Fund Account Rs. 13.36 crores
from the Special Grants under the Twelfth Finance Commission, Rs. 10
crores from loans under Small Saving Scheme, Rs. 11.54 crores from net
Market Borrowings and Rs. 18.08 crores under Negotiated Loans which
comprise institutional borrowings form LIC, NIC and NABARD. Further, the
component on account of NET Capital Receipts which constitute the amount
intended to meeting the State's debt repayment obligations has been
fixed at (-) Rs. 25 crores.
The amount approved as the Central Assistance component in the financing
pattern comprises Normal Central Assistance of Rs. 307.75 crores,
Additional Central Assistance for Externally Aided Projects amounting to
Rs. 32.00 crores and Additional Central Assistance for other Special
Programmes for which an amount of Rs. 90.78 crores has been allocated.
The Additional Central Assistance for the Special Programmes have
specific earmarked provisions as under:
|
1 |
Prime Minister's Gramodhaya Yojna. |
Rs. 30.00 crores. |
|
2 |
Accelerated Irrigation Benefit Programme. |
Rs. 1.50 crores. |
|
3 |
Slum Development. |
Rs. 1.00 crores. |
|
4 |
Boarder Area Development Programmes. |
Rs. 5.72 crores. |
|
5 |
Tribal Sub-Plan. |
Rs. 0.97 crores. |
|
6 |
Roads and Bridges. |
Rs. 1.06 crores |
|
7 |
National Social Assistance Programmes. |
Rs. 1.91 crores |
|
8 |
Nutrition Programme for Adolescent Girls. |
Rs. 0.14 crores |
|
9 |
Grants in Aid Under Article 275 (1). |
Rs. 0.37 crores |
|
10 |
Initiative for Strengthening of Urban Infrastructure. |
Rs. 0.10 crores |
|
11 |
Rashtriya Sam Vikas Yojna. |
Rs.15.00 crores |
|
12 |
Accelerated Power Development and Reforms Programme. |
Rs. 19.46 crores |
|
13 |
National E-Governance Action Plan. |
Rs. 0.55 crores. |
|
14 |
One time Additional Central Assistance for schemes of Special
importance to the State. |
Rs. 13.00 crores |
| |
TOTAL
|
Rs. 90.78 crores |
In the financing
of the total budgeted expenditure of Rs. 3713.86 crores for the budget
year, Rs. 2062.54 crores has been projected as the Gross Revenue
Receipts and Rs. 1772.79 crores as Gross Revenue Expenditure. The
budget, there, presents a revenue surplus figures of Rs. 289.75 crores.
In my projection for Gross Revenue Receipts, an amount of Rs. 102.50
crores is attributed to collection from tax revenue sources and Rs.
992.78 crores from non-tax revenue sources. In the budget, a provisional
amount of Rs. 147.61 crores has been provided for on account of
allocation for Centrally Sponsored Schemes, Rs. 41.96 crores envisaged
under North East Coucil, an amount of Rs. 70.47 crores under the
Non-Lapsable Pool and Rs. 1478.97 crores under Public Account.
The details of the receipts and disbursement envisaged in the budget for
the fiscal year 2005-06, is summarized below:
|
A |
RECEIPTS |
(Rs in crores)
|
|
1 |
States Revenue
(a) Tax Revenue
(b) Non-Tax Revenue |
102.5
992.78 |
|
2 |
Grant in Aid from Government of India |
815.87
|
|
3 |
Sharable Tax from Government of India |
151.38
|
|
4 |
Loans from other other Institution |
29.62
|
|
5 |
Loans from Central Government |
70.18
|
|
6 |
Recoveries of Loans and Advances |
1.11
|
|
7 |
Public Account |
1499.19
|
| |
TOTAL RECEIPTS
|
3662.63
|
|
B |
DISBURSEMENT (EXCLUDING RECOVERIES) |
(Rs in crores)
|
|
1 |
Grant in Aid from Government of India |
470.00
|
|
2 |
Sharable Tax from Government of India |
147.61
|
|
3 |
Loans from other other Institution |
70.47
|
|
4 |
Loans from Central Government |
41.96
|
|
5 |
Recoveries of Loans and Advances |
1504.85
|
|
6 |
Public Account |
1478.97
|
| |
TOTAL DISBURSEMENT
|
3713.86
|
|
C |
Years Deficit |
(-)
|
51.23
|
|
D |
Opening Balance (2005-06) |
(+)
|
51.74
|
|
E |
Closing Balance (2005-06) |
(+)
|
0.51
|
Mr. Speaker Sir,
we have set a target of growth rate of 10% in the Tenth Plan. This will
entail a great deal of dedication, discipline and hard work on the part
of the Government to consolidate the good investments made so far and
rededicate all our resources to carry forward the pace of progress in
every socio-economic spheres of development. In the inter-state ranking,
we have been positioned in the top ten States in the country in terms of
various performances indexes. Our endeavor will be aimed a bettering our
position to emerge as the Best Performing
State in the entire country. With this vision in
perspective, I solicit the cooperation, support and dedicated commitment
of all Hon'ble Members in implementing the development policies adopted
by the Government for the upliftment and betterment of the State's
Economy and in improving the well being of the people.
Hon'ble Speaker, I hereby conclude my presentation and place the Budget
for the fiscal year 2005-06 for the consideration.
Thank you.