Mallika Dureja
Monday at Chintan Bhawan in Gangtok, the Finance Minister interacted with stakeholders, officers, chambers of commerce, SHGs, and entrepreneurs. Following her interaction with the media, Sitharman described her visit to Sikkim as the “Gateway to the Northeast” as part of the Budget outreach programme.
Regarding the Budget Outreach programme in Sikkim, Sitharaman stated, “In the last four or five years, following the budget, we have made it a practise for the entire Ministry to travel around the country to various cities and interact with stakeholders, officers, chambers of commerce, SHGs, etc. to determine how they have interpreted the budget and if they require clarification. They could exchange ideas; the first time I did this in 2019 I found it to be extremely beneficial. We were able to explain the budget in detail, and sometimes we received very valuable suggestions that we were able to implement. Consequently, after the Budget was submitted this year, we had already visited Hyderabad, Bhubaneswar, Jaipur, and Mumbai. Now we are in Gangtok, the Northeast’s gateway to Sikkim, as part of this year’s budget outreach programme for the Northeast region.
On Tuesday, Sitharaman will also virtually inaugurate the Yangang Ropeway Project. Sitharaman stated, upon the successful completion of the ambitious tourism project in Namchi district, “I will inaugurate the ropeway from Dhapper to Bhaleykhunga in Yangyang via video conference tomorrow. The initiative benefited from the previous year’s PM DevINE. Thus, you are observing the outcomes of capital expenditure allocations made through PM DevINE. This is a classic example, and another initiative for which the foundation will be laid tomorrow will benefit directly from the PM DevINE programme.”
Regarding the ongoing debate over Income Tax exemption for ancient settlers in the January 13 Supreme Court verdict, Sitharaman stated, “Immediately after the judgement was released, it was the Union government that approached the Supreme Court and requested that the irrelevant remarks be removed. In other words, the intent of the Central government to respect the privileges and rights of the Sikkimese has been maintained through the immediate response and action of the Central government. The Center’s prompt response to the situation demonstrates our determination, so you can rest assured. I would like to reassure the people of Sikkim that nothing has changed regarding Sikkimese, as the court case has already been resolved.”
In response to a query regarding the closure of international trade along the Indo-China border in Nathula, Sitharaman stated, “This issue was brought up in today’s meeting and we have taken note of the request. The facility was closed in 2020 and has not reopened since. If it is kept open, we have taken note, but since this is a matter for the Ministry of the Interior, we will communicate this to the Ministry of the Interior.”
Sikkim received the smallest portion of the country’s devolution of central taxes in the previous year, totaling Rs. 3,963.23 lakhs. However, the finance secretary TV Somanathan continued by stating that Sikkim receives the greatest devolution of central taxation. Somanathan stated, “On a per capita basis, Sikkim receives the highest devolution of Central taxes; however, you cannot consider the absolute amount; you must compare it to the population of Sikkim.” When compared to other densely populated states, Sikkim actually receives the highest level of devolution in the country. This may be due to the fact that the state’s population is limited.
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In response to a question about how the budget would affect Northeast India, Finance Secretary TV Somanathan, who was present alongside the Finance Minister, stated, “The outlay for North East Council programmes has increased from Rs 644 crore in 2022-23 to Rs 800 crore in the current budget. The Northeast infrastructure development schemes, including roads, have increased from Rs 1419 crores in 2022-23 to Rs 2491 crores, and the PM DevINE, which had a revised budget of Rs 400 crores, will increase to Rs 2200 crores in subsequent years. Moreover, under the scheme of 50-year interest-free loans to states for capital expenditures, there is a 30% increase, and Sikkim is one of the states that receives a disproportionately higher allocation. The Government of India has decided to provide more than the proportionate share for the Northeastern States. Sikkim will be a significant beneficiary of the increase in loans to states for capital investment, in addition to other ongoing development programmes. NHIDCL will also benefit from the increased budget for infrastructure, particularly roads.
Concerning the connectivity of villages through the PM Gram Sadak Yojana, the Finance Ministry stated, “Sikkim has its own challenges, but heliports can be built; the budget calls for the construction of 50 helipads.” Connectivity also refers to digital connectivity, and equal emphasis is placed on border villages via fibre optics, as well as ensuring that panchayats, schools, and PHCs can obtain connectivity, so that other services can be provided and students can take online classes.
The Union Minister of Finance praised the state for being the first in India to completely adopt organic agriculture. She urged the State Government to develop a specific action plan to support organic farming in the state after consulting with all relevant parties.
During her visit, the Minister will also visit the border villages in Lachen to determine whether or not the ‘Vibrant Villages’ program’s objectives are being met and whether or not the banking sector’s initiatives are reaching their intended beneficiaries.
