Hon’ble Speaker Sir
and Hon’ble Members,
Let me first extend my warm greetings to all the Hon’ble Members of this August
House, officials of the Sikkim Government and the people of Sikkim for a happy
and prosperous New Year. Our Government has always given the highest importance
to the presentation of annual budget. It is not an annual ritual. It is a very
serious task. In its making and presentation a whole range of people and institutions
are consulted. It is a formidable exercise because it carries in it the reflections
of changing hopes and aspirations of the people. It also projects the direction
and guidance provided by our national leadership. We prepare budget because we
have limited resources but a whole range of activities. We prepare budget so
that this document guides us through out the year in proper, efficient and effective
utilisation of resources.
As I rise to make the Budget presentation, I am very delighted to announce that
Human Security is the theme of this budget for the fiscal year 2006-2007. Living
in a sensitive border State Sikkim we have much heard about national security.
However, the definition of security itself is fast changing. National security
which is essentially threatened by the agency or power outside the country is
now undergoing a much larger definitional change. It is because in the narrow
prism of national security many of the aspects that directly impinge upon human
beings are not really considered or taken. Security for whom? It is also because
of the fact that all over the world it is the non-war related incidents that
have killed more than 100 times the people than by the wars.
What are these non-war incidents and events? These are famines, natural disasters
like earthquake and Tsunami, ethnic cleansing, political violence, civil war,
terrorism, genocide and epidemics like AIDS. Nobel Laureate Amartya Sen mentions
that the 1943 famine of Bengal alone killed over 15 lakhs people. This means
people’s miseries and insecurities could very often lead to national security
threats. Scholars, experts, politicians and policy makers across the world have
now realized how critical is human security for human survival. The theme of
UNDP’s Human Development Report in 1994 itself was human security.
The UN Secretary General Kofi Annan once aptly remarked that “Human security
can no longer be understood in purely military terms. Rather, it must encompass
economic development, social justice, environmental protection, democratization,
disarmament, and respect for human rights and the rule of law”.
In policy terms, human security is an integrated, sustainable, comprehensive
security from fear, conflict, ignorance, poverty, social and cultural deprivations
and hunger. We can achieve human security when and where individuals and communities
have the options necessary to end, mitigate or adapt to threats to their human,
environmental and social rights and have the capacity and freedom to exercise
these options.
It’s human security which involves the qualitative aspects like human dignity
that entail full participation in the community and national life, control over
decisions and ‘democracy at all levels’ as much as quantitative parameters like ‘fulfillment
of basic material goods’. A leading thinker once said that “ it is better to
save us from the hail in earth rather than proposing to send us
to heaven.”
In Sikkim we want people to be absolutely secure. Towards this end, we have already
laid a firm foundation in terms of improvement of quality of life, social re-awakening
and capacity building aspect of our people and especially the young generation.
We are looking at development in its comprehensive term wherein people prosper
and can discriminate between good and evil, right and wrong. And we believe that
human security is best attained through mass awakening, good education, health
and a conducive environment facilitating growth of an individual in a comprehensive
term. In Sikkim, we have seen this tangible transformation due to good governance
that we have been pleased to provide to the people of Sikkim over the decades.
In Sikkim, we want people to be largely contented with their rights, freedom
and development aspirations. We are convinced that as a logical corollary, this
would ensure national security as well.
Our Government has been promoting the critical aspects of human security in a
conscious and substantive manner. We now want to declare it as the theme of our
sustainable development goal. Therefore, within the human security paradigm of
ours we will have a quadrangular approach of livelihood security, energy security,
environmental security and democratic security. These are the four pillars of
our Sikkimese society and polity. One of the most effective ways to ensure human
security is to re-emphasise on human development.
I have always dreamt of Sikkim as a frontier State in literal sense of the term.
The frontier State should not only mean that we are in the frontline of national
territory. It should also mean that we are in the frontline of development, peace
and tranquility process in the country. We have proved to be so.
Hon’ble Members, I want to go beyond the bridge. And I want to say that we should
lead the nation in thinking process also. When the State commissioned and produced
the Sikkim Human Development Report in 2001 we became the 3rd State in the country
to do so. Many people wondered and asked how come a frontier state produced a
report on the theme which was discussed in the global scene only for 10 years.
We have to produce such wonders to keep us atop the thinking process. That is
why this theme of human security. The world community has been discussing this
concept only in the last ten years. In Sikkim, we have caught up with the world.
We are possibly the first State in the country to have human security as the
budget theme.
Hon’ble Members will therefore, find a distinct sense of human security elements
in this budget being presented to the august house. I fervently hope that the
issues of human security will increasingly be a dominant theme of our development.
This will help us in making the Indian 21st century to be the century of the
hill region and the hill people.
Revenue Surplus State
The budgetary exercise has been undertaken duly keeping in mind the new policy
initiatives taken by the Government of India which advocates stringent fiscal
discipline on the part of federal States under the Medium Term Fiscal Framework.
The thrust is on eliminating State’s revenue deficits over a definite time frame.
Hon’ble Members are aware of the 12th Finance Commission’s Award of Rs. 188.67
crores which is dismally low when compared to the Award of Rs. 840.58 crores
by the 11th Finance Commission as Non-Plan Revenue deficit grant. This unexpected
development has considerably upset the fiscal position of the State thereby severely
impacting upon the State’s development agenda. The withdrawal of the subsidies
in the power and transport sectors has also added further strain on the States
finances. I have raised this issue with the Hon’ble Prime Minister and Finance
Minister and also the Deputy Chairman, Planning Commission. I have been assured
that these discrepancies will be corrected with appropriate remedial measures.
However, the present phase of deficit is both temporary and transitional. It
would not take us long to over come this phase. We are determined to wipe out
the fiscal deficit by 2015. This confidence of ours is based on the following
four factors:-
i) All the major planned hydel projects will be completed which are likely to
give us an unprecedented quantum of revenue. The hydel power projects are projected
to yield a total revenue of Rs. 300 crores by 2015 and Rs. 1140 crores by 2020.
ii) The reopening of the Nathula trade route would bring a fresh dynamism to
our resource mobilisation effort.
iii) Most of the projects in horticulture, floriculture and agri-business will
be in place by then thereby leading to a diverse chain of revenue sources. For
instance, we grow flowers for every occasion. Exotic flowers for export, flowers
for décor, flowers for weddings, special blooms for special occasions. The demand
for flowers domestically is growing at a rate of 25 percent annually. There is
an international market of Rs 90000 crore for flowers alone.
iv) The investment we are making in tourism sector will start yielding fruits
within the next couple of years and if tourism is finally integrated with the
trade route through Nathula then the revenue position could be drastically improved.
Buddhist circuit has now been identified as one of the priority areas in the
tourism development policy of the Government of India. In fact, in my recent
address to the National Committee set up to commemorate the 2550th Buddha Jayanti,
I have suggested the flagging off of a tourism circuit venture from Gangtok connecting
all the major Buddhist destinations in India and neighbouring countries. This
includes Bodh Gaya in Bihar, Rumtek in Sikkim, Tawang in Arunachal Pradesh, Lumbini
in Nepal, Taktsang in Bhutan to Jokhang and Potala in Lhasa and Myanmar. This
circuit has in it very strong element of cross border religious bonds, economic
and commercial opportunities and regional integration benefits.
Let me also mention that the horizontal and vertical expansion we made in departmental
recruitments immediately after we became a State of India has been mainly responsible
for the huge financial burden on the governance budget of the State. Hon’ble
Members are aware of the unaffordable size of the salary liabilities of the Government
which cannot be sustained at the cost of reduced development expenditure. Therefore,
we are now seriously deliberating on certain measures to ease the fiscal strain
which would include a blanket ban on extension of services of retiring employees
in the State.
A large number of the governance related personnel will be retiring by 2007-2008.
We would then like to do away with all the vacated posts so that the size of
the government and the expenditure therein would remain tremendously reduced.
We shall have to prepare ourselves for this pruned and slim yet productive administrative
machinery. This would give a significant relief to our revenue position.
This would also fulfill our great dream to make every Sikkimese a “Lakhpati” in
terms of per capita income.
Performance Indicators
Most of the major performances of our Government in the last over one decade
have been mentioned in the Economic Survey of Sikkim 2005-06. I would like to
take this opportunity to highlight at least some of them for the benefit of this
August House.
Sikkim’s image both at the national and international level has really been very
sprightly and alive. Many newspapers, television and radio channels and organisations
have now declared Sikkim as a happening place. We want this image to be further
consolidated. Whenever I meet the central leadership, professionals and the media,
I find them highly impressed by our economic profile, environmental management,
high growth rate indices and how we have been able to maintain such an absolute
level of peace and tranquility. The people of Sikkim are aware that we have worked
very hard for it and we have earned the distinction. Therefore I express my deep
sense of gratitude to all the people and also take this opportunity to appeal
to them to maintain the tempo in the future.
In a clear departure from the past, we have now been able to establish a regular
cross cultural, social and intellectual interaction with people from outside
the State and the country. People from outside have judged us more intensively
and critically . We want that people and organisations from outside independently
audit our performance. We also want still a large number of experts, professionals
and policy makers to visit Sikkim and give us the benefit of sharing their knowledge,
experience and expertise. To promote this exercise of exchanging knowledge and
ideas, and as a measure to disseminate our rich socio-cultural and environmental
practices to Indian and international audience, I am pleased to announce a “Sikkim
Performance Audit Fund” which will be managed by the Information and Public Relations
Department.
Baudhik Unnati Rashi
The Socio-Economic Census done in 2005, which is now being finalized, shows that
we have 2697 post graduates in the State. This is a small number. This shows
that not many Sikkimese have really undertaken higher studies. We need a large
number of people with very high educational qualifications to run the affairs
of the State. This will be more so in the years to come when we leap forward
in our economic development.
Knowledge is supreme. The 21st century is going to be the Century of knowledge.
We have remained the consumer of knowledge procured by others. We would require
that critical mass in the State that can intellectually support a better and
effective governance of the State. So far, for every expertise or knowledge base,
we need to go outside. In the process of outsourcing of this knowledge we lose
financially, socially and culturally.
My Government is prepared to do a great deal in strengthening the level of knowledge
in the State. It could be in any field from literature to psychology, culture
to sports, biotechnology to criminology, and economics to anthropology and mountain
ecology to media. A conscious, informed and confident Sikkimese society is the
call of the 21st century. We should better remember that we have a solid advantage
of having a huge reservoir of traditional knowledge and practices. Let us produce
knowledge.
In order to create a crucial mass of public intellectuals I declare the establishment
of “Baudhik Unnati Rashi” (Intellectual Progress Fund). This can be used preferably
by the younger generation Sikkimese for acquiring advanced knowledge both within
the country and outside. I would also urge the rich and benevolent people of
Sikkim to contribute to this Fund.
The ultimate idea is to produce well informed, highly knowledgeable and confident
Sikkimese to lead Sikkim. Sikkim should be led by talented people. We want to
break free from this concocted notion of providing leadership of Sikkim in the
name of a community, caste, tribe or class or superficial ideology. Sikkim should
be led by the talented people who have capacity, integrity, high esteem and confidence
and who respect human values and tenets of democracy.
On the issue of leadership, we do not mean only political leadership. We want
leaders from Sikkim in every other field. We want Sikkimese leaders in economy,
education, science and technology, in the media and bureaucracy so on and so
forth. The latest report on the unemployment situation in the country shows that
there will be shortage of 5 lakh knowledge workers by 2010. This is, despite
the fact that we have 40 million unemployed people and 3.6 million student graduates
every year. In other words, one has to have specialized knowledge in order to
be bought in the job market. Let me take this opportunity to call upon the young
educated to expand their intellectual horizon and provide leadership in certain
field globally.
Paryatan Prabhav Addhyayan
Tourism is our major strength. The numbers of tourist arrivals in the State has
increased from 21, 854 in 1981 to 99,323 in 1994 to 2,46,197 in 2004. We are
aiming at attracting 10 lakh tourists per annum by 2012. We are also proposing
to integrate the tourism and trade through the Nathu la trade route. However,
we are equally aware of the adverse impact of tourism on our society, culture,
environment and even economy. Our thrust is to minimize any negative impact of
tourism. We do not want to have a situation where the authorities react to adverse
situation only when maximum harm and injuries have already been done. In order
to do so, we need to have a very authentic, first hand and scientific knowledge
about nature, varieties and extent of such impacts. This can be done only through
regular studies, monitoring and evaluation. And this has to be done by experts
and independent institutions. Therefore we would like to initiate this process
through a special window which I would call “Paryatan Prabhav Addhyayan” (Tourism
Impact Study).
Praudyogiki Vikash Bhandar
Technology is so vital to any of our effort made towards people’s upliftment.
Technology can bring dynamism, generate income and employment, inject sustainability
to the livelihood pattern. We know what technology has done to the three major
revolutions in the post-independence India the “Green Revolution”, the “White
Revolution” and the “IT Revolution”. The American President has proposed to his
countrymen to ‘remain a flexible, technologically-based economy.’
In our region in the North East, the lack and use of technology are conspicuous.
Even if the technology is available, what is lacking is dissemination. We need
more and more agencies and institutions responsible for both development of new
and appropriate technologies and dissemination of the same.
In order to bring technology to the forefront of our daily life I hereby announce
setting up of a pool of fund namely Praudyogiki Vikash Bhandar (Technology Development
House) which would help individuals and institutions to explore, find, test and
disseminate the technology which are useful for the Sikkimese development process.
This could cover any sectors including health, agriculture, education, information
technology, energy, bio-technology, media and communication.
Hon’ble Members are aware that we are hard pressed to introduce certain fiscal
measures to overcome our budget deficit. However, we are not doing anything which
may hit the collective interest of the common man. We would continue to overcome
fiscal constraint through more innovative interventions which includes a 10%
deduction in the non-plan expenditure and stringent austerity measures on all
government spending. The other measures would include an increased vigilance
to check economic leakages in various forms and levying of taxes on certain set
of services and commodities.
As part of a more assertive and positive intervention, we would increase and
broaden our revenue base through judicious utilization of our human resources
and natural resources. The Government would endeavour to improve our fiscal position
through increased production in sectors like animal husbandry and agriculture.
In all our exercises, we would keep the interest of the common man high in our
priority. Any fiscal measure that we may introduce in the future will have an
inherent element of safety with regards to protection of interest of the people
of Sikkim.
Decentralization of development administration:
Our Government has effectively institutionalized the process of devolution and
decentralization of the administrative and financial authorities to the Panchayati
Raj Institutions. A number of grass root level activities including development
planning, health and education management and entrusting local development administration
to the people at the Panchayat level have been decentralized and the feed back
in the implementation of this policy shift has been fairly successful. I take
pleasure to inform this August House that in the area of Panchayati Raj administration
Sikkim was ranked third in the country. Capacity building measures including
educative and exposure programmes to equip and acquaint our grass root developmental
functionaries in the domain of local development administration will be given
due attention. We are setting up Block Development Offices in each Constituency
to fully institutionalize the decentralization process. The recently launched
National Rural Employment Guarantee Programme will be placed under the able management
of the village level administration. The essential question involved is giving
power to where it belongs- i.e the people of Sikkim.
The State Planning Commission has already initiated the exercise of local level
consultations for the XIth Five Year Plan to give effect to the concept of bottom-up
approach in the overall planning process whereby people’s involvement in the
local development administration process can be meaningfully realized.
In order to ensure an equitable and regionally balanced spread of our plan investments
and to appreciate the socio-economic profile of the State which would serve as
the basis of planning for our future development strategies, we have initiated
the first ever exercise of conducting the socio-economic census which will provide
vital data of the last three decades for each household, block-wise and ward-wise.
The findings of this Census operation will serve as a useful guideline in appreciating
the developmental gaps and framing corrective strategies and plans in our future
development agenda.
Urban development
With the geographical boundary of Gangtok being redefined through Government
Notification, measures need to be taken to systematically demarcate areas with
proper survey and investigation which will form the basis for reviewing and revising
the Master Plan for the city. Our Government has made significant achievement
in development of several urban infrastructures in Gangtok including other townships.
Apart from shopping complexes, the deficiencies in civic amenities with regard
to car parking facilities, public latrines, slum improvement, garbage disposal
etc. have been taken care of to a considerable degree. The introduction of the
scheme of National Urban Renewal Mission which is designed to address the issues
of poverty alleviation in urban areas and integrated development of basic urban
infrastructure will entail a paradigm shift and some structural reforms in the
strategy for urban planning and development. In pursuance of the 74th Amendment
of the Constitution, necessary preparatory works have been taken to usher in
the new regime of democratic decentralization of administration and devolution
of financial powers to the elected local bodies. The Draft Municipal Bill is
being finalized and the legislation will be in place in the very near future.
After we took over the reign of governance, we fervently set about addressing
the Basic Minimum Needs of the people of Sikkim. Today, after a span of over
12 years, we have been able to provide them food, dignified shelter and clothing.
We have provided to the people safe drinking water, electricity, housing, education,
health, sanitation without any exception. Today, Sikkim has emerged as the number
one State where people are provided with their basic needs and where they get
adequate security to their life and property. A brief glance at the impressive
socio-economic indices would amply reflect the level of achievements we have
made over the last twelve years:
i) The gross domestic product of the State increased from Rs. 403 crores in 1993-94
to Rs.1531 crores in 2004- 2005.
ii) The per capita net domestic product recorded a three fold increase from Rs.8457
in 1993-94 to Rs. 26851 in 2004-05. Among the 28 States and 7 Union Territories
in the country Sikkim has the 5th highest Growth rate in per capita income and
14th highest per capita income.
iii) As per the preliminary findings of the Socio-Economic Census 2005, the percentage
of households below poverty line has gone down drastically to 20 percent.
iv) We expect to further improve our national positions in the various indicators
of our performances. India Today group has already declared our State to be the
best in education and investment climate among the small state category.
v) My Government has set up a task force on Environment headed by Ms Sunita Narain,
Director of the prestigious Centre for Science and Environment. This Task Force
will not only critically evaluate the actions taken by our Government on the
environmental front but would also provide a road map for the sustainable development
project in the State.
vi) State now has over 75 percent literacy rate (69.80 in 2001) against the all-India
average of about 65%.
vii) The infant mortality rate has come down to 33 per thousand as against the
national figure of 60.
viii) The birth and death rates have come down to 21.9 and 5 per 1000 population
as against 24.8 and 8 respectively of all India figures.
ix) We are soon going to have a task force on youths and self employment.
x) We have seen a number of noted film makers coming and shooting their films
in Sikkim.
xi) We will soon have a Central University established in Sikkim
xii) Under the UNDP assisted project on strengthening State Plans for Human Development,
a Human Development Research and Coordination Unit has been created in the Development
Planning, Economic Reforms and NEC Affairs Department. This machinery has been
created to strengthen the capacity and expertise with all key functionaries engaged
in activities relating to formulation of policies and strategies for the State’s
economic development.
Nathu La Trade Route reopening
The Hon’ble Members are aware that the reopening of the traditional trade route
between Sikkim and the Tibetan Autonomous Region of China is very imminent. This
historic milestone is likely to happen anytime this year. This heralds the meeting
of two oldest civilizations in Sikkim. This also gives us a deep sense of satisfaction
as the reopening of this trade route has been a major demand of our Government.
Besides its immense economic, social, historical and political significance,
the reopening of Nathu la trade will convert the present hard border between
India and China into a soft border. We will play the most vital role of peace
builder and sustained peace promoter. The peace dividends will be incessant and
priceless.
The high level Nathu la Trade Study Group set up by the Government of Sikkim
has submitted the final report. It is a very detailed and comprehensive document
that places the entire perspective of trade and tourism through Nathu la route
for the next 20 years. The Union Government is highly appreciative of the exposition
and findings of the Report.
The Study Group has presented two scenarios for trade volume projections. Scenario
I of higher projection shows that trade flow through Nathu la will be Rs. 206
crores by 2007, Rs. 2266 crores by 2010 and Rs. 12203 crores by 2015. Under the
Scenario II of lower side projection, trade volume passing through Nathu la route
will be Rs. 353 crores in 2010, Rs. 450 crores in 2015 and Rs. 574 crores in
2020.
The Study Group has mentioned that on a very simple assumption also the charges
on tourists visiting Sherathang and Nathu la could generate a revenue of Rs.
1.81 crores in 2006 and Rs. 3.47 crores in 2010. The income and employment effects
on roadside hotels and restaurants, handicrafts, transport and communication
and many other backward and forward linkages are likely to be immense.
Besides many other prospects this trade route is likely to bring to the State,
the Study Group also mentions that annual revenue generation by Sikkim Nationalised
Transport (SNT) or by private truckers through movement of 100 - 500 trucks daily
between Siliguri and Nathu la at the existing rate varies between Rs. 13.97 crores
to Rs. 69.90 crores. If this rate is doubled by 2010, the total annual revenue
generation is likely to be between Rs. 27.94 crores to Rs. 139.80 crores.
The Study gives great details about how China is preparing for the same and what
should be the preparation mode of India. The large scale investment opportunities
including making the entire Sikkim a trade mart has been identified and recommended.
While congratulating the entire team of the Nathu la Trade Study Group for preparing
a comprehensive report in such a short time, let me mention that there are very
interesting and far reaching policy suggestions made in the report. This includes
first opportunity to be given exclusively to the people of Sikkim, opening up
of Indian Consulate in Lhasa and infrastructure development package of Rs. 1650-1700
crore for Nathu la trade route. I would like the people of Sikkim to read this
report, discuss and deliberate on the same. We shall have to make best out of
the findings and policy suggestions made in this report. I therefore, take this
opportunity to formally present this report before this August House for both
discussion and adoption.
Special Economic Zone
In the wake of the reopening of the Nathu la trade route and the increasing interests
shown by the investors both in India and abroad we would now like to make a proposal
to the Union Government for setting up of a Special Economic Zone in Sikkim with
all the facilities and amenities for export manufacturing units and a dry port.
This is urgent for us as we are expecting to have a series of Small and Medium
Enterprises (SMEs) set up in and around Sikkim in the coming years.
Look East Policy
Sikkim’s development avenues lie either towards the north with China emerging
as a huge market for investment, tourism, goods and services or towards the East
with the entire South East Asian and East Asian countries acting as the harbinger
of Asian resurgence. Today every one is talking about the 21st Century being
an Asian century. We are so close to the entire South East and East Asian countries
yet our interaction with them is very inadequate. The Union Government has been
propounding the cause of “Look East Policy” primarily aimed at integrating the
Indian economy more to the East. Our Hon’ble Prime Minister Dr. Manmohan Singh
attended the East Asian Summit held a couple of months back in Kualalumpur. The
idea is to create an East Asian Community like the European Community. This has
a great promise for our country and other Asian partners.
Sikkim is the gateway to India’s Look East Policy. We have been a major player
in this new direction of thinking and action. The new regionalism primarily triggered
by globalization and flourishing people to people contact is fast influencing
this Look East Policy. We are looking forward to play a crucial role in India’s
trade, tourism and other economic cooperation with countries in the eastern fringe
including Bangladesh, Myanmar, Thailand, Malaysia, Singapore, China and even
Japan. We are also a major partner in the emerging regional initiative known
as Bay of Bengal Initiative for Multi-Sectoral Techno-Economic Cooperation (BIMSTEC).
In our LOOK EAST policy venture we have three major items to offer namely floriculture,
horticulture and tourism. Although not many people in countries like Singapore,
Thailand and Malaysia are aware of our strong natural resource base yet we have
very distinct advantages in most of the produces we have in floriculture and
horticulture sector.
Today Bangalore, Pune, Delhi and Hyderabad are the major exporters of flowers
mainly to Japan, Australia, Russia and Singapore. Companies from Chennai are
even exporting tropical orchids mostly dendrobium. We have all these, yet we
are not able to get a share in this ever flourishing market. The most fundamental
reason as I can see is that we are not outward looking and not been able to exploit
the international markets.
I therefore, would like to make a very sincere appeal to the people of Sikkim
and the officials at all levels to bring innovative ideas that can inject a series
of dynamism to the vitals of Sikkimese economy and society.
Hon’ble Members are aware that what we do today is based on our conscientious
planning, backed by professional inputs and expertise. That means it no longer
is the ‘hit in the dark’ syndrome so characteristic of the previous regime. We
have defined our development priorities and set time-bound targets. We have achieved
many. More needs to be done. In order to push our State on the path of accelerated
growth, we have already initiated steps to tap our huge hydro-power potential
and other promising areas like horticulture and floriculture.
In Sikkim, only 13% land is available for productive cultivation and the rest
comprises of Himalayas, glaciers, water bodies, flora and fauna. This makes Sikkim
an ideal land for promotion of eco-tourism with its broader facets like adventure
tourism, village tourism and pilgrimage tourism. Keeping all these in mind, we
have also set up the State Green Mission plan that provides for a comprehensive
plantation drive along all the road reserves and bye-passes in the State, government
land and in the vicinity of religious institutions. This also includes setting
up of parks and gardens, plantation of flowering plants and trees across the
State. Towards this direction, we have already banned grazing and felling of
trees in our forest and also banned use of plastic and non-biodegradable materials
in the State. This forms part of our greater vision to make Sikkim as the Garden
State which would also mean significant contribution in the conservation of the
Himalayan eco-system. In this great movement, I call upon all the people to join
hands with us for total success of this campaign.
We have made much of a headway in promotion of horticulture and floriculture
products in the State. Of lately, the State Government is also taking a new initiative
to set up food processing units in the State. When our local produce is turned
into finished products, the sale ability aspect will be very high fetching competitive
prices at the national and international markets. The people are aware that we
have already set target to make Sikkim a total organic State by the year 2009.
Our Government’s solemn commitment is to promote all these sectors into the people’s
profession. People’s choice and priorities the world over have changed. So we
must change our outlook as well. If we are able to successfully promote all these
sectors, Sikkim would easily emerge as the promised land without unemployment,
hunger and discrimination. On this occasion, I would appeal to the people to
grow more productive, creative, innovative and hard working to serve the collective
interest of the State.
Importance of being a Producer
We are virtually a consumer State. From toothpaste to toothpick and petrol to
bidi we buy in the market. From books to greeting cards and from bananas to cement
and movies to computers we depend on import from outside. We have become entirely
dependent on products that otherwise could easily be produced in the State locally.
There are serious disadvantages in remaining a consumer State.
i) With the infusion of massive development investment in the State, the economic
activity has been buoyant with opportunities being created in terms of employment
in various sectors . However, because of absence of professional expertise and
adequate talent among our multitude of Sikkimese, the emerging opportunities
of employment are being grabbed by qualified people from outside the State. A
typical instance to illustrate this point is the case of numerous teaching jobs
being snatched away by outsiders due to lack of qualified local candidates. Similarly,
opportunities for investments are immense but due to lack of entrepreneurship
amongst our people, outside investors are fully exploiting this situation to
their advantage. This dismal scenario is a cause for serious concern.
ii) The market is entirely trader/supply driven mainly because Sikkim brings
most of its daily requirements and other regular provisions from outside the
State. The omnipotent traders always have an upper hand. At the receiving end
are the consumers who are generally not conscious of many critical things like
authentic retail price, expiry date, quality, weight and genuineness of the item.
They are very often taken for a ride.
iii) To consume something is easy but to produce is difficult. This consumer
culture has made us lethargic, unimaginative, and one track minded. We do not
realize the hard fact that we are becoming doubly dependent. Our habits are getting
spoilt and attitudes are getting disoriented. Our societal values are getting
limited to what and how much we can buy. Our social status is now determined
by our capacity to buy.
iv) This consumer culture is spreading fast. We are importing vegetables and
fruits. We are importing chicken, pork and mutton also. These things were aplenty
in Sikkim once. Can you imagine we are now importing water also. We let millions
of cusecs of water flow to the plain lands through our pristine rivers and bring
them back as bottled mineral water.
As one scholar had rightly said, “Standard of living depends on productivity
and productivity, in turn, depends on new technology”. Therefore let us rethink
our position as consumers. On this auspicious occasion, may I call upon all the
Sikkimese people to collectively vow to transform our State from a consumer State
to a producer State.
People can produce anything as per their choice, capability and resources at
their command. Markets are expanding and people’s demands and choices are enlarging.
People are willing to pay a better price if what we produce are genuine. We can
produce knowledge, films, food, flowers and water. We can produce even “yoga” bhajans,
kirtans, thangkas, jari-butti and butterflies. We can produce electricity and
sportsmen to rock carvings and trekking routes. We can even sell a reproduced
history like that of Guru Padmasambhava, money minting and Younghusband Mission.
You can produce the ideas and concepts, practices and traditions.
In other words, consumers do not only buy fridge and Toyotas, pen and bread,
Black Label whisky and Rayban glasses. They also buy ideas, traditions, knowledge,
happiness and contentment.
We have more distinct advantages in being a producer State.
i) Money and employment will flow in and not flow out
ii) We will command the market and the consumers and not vice-versa
iii) We can eat and enjoy our own ‘pure and genuine’ products by being self-reliant.
iv) We shall become independent individuals and joyful communities
v) We shall have major victory and pride of being producers
vi) We shall be able to use the beautiful and bountiful gifts of nature we have
and which others do not have.
vii) It will sustain our family, society and the State
With the increased inflow of tourists, we would require more food products, green
vegetables, more handicrafts, more hotels and more public places. With the proposed
reopening of the Nathu la trade route we shall have the largest world market
of India and China (2.6 billion people or 250 crores). The West is coming to
East once again. We are one of the key attractions of the East. Orientalism is
once again reviving. We are an artery of orientalism. The opportunities are galore
for those who want to be producers. Let us open our eyes and refurbish our minds.
In producing something we have all the gains.
Education and health has remained our top most priority. Nowhere in the country
you find education and health facilities so highly accessible and affordable
than in Sikkim. We have upgraded all our health centers with latest technological
inputs. We have a medical college and also the referral hospital. Education is
free upto the college level. It also gives me a great pleasure to announce the
location of the JNU admission test centre in Gangtok. We all know that Jawaharlal
Nehru University is one of the most premier and prestigious Universities of Asia.
A large number of students write the admission test to get admission into this
University. Our young students are fortunate that the University authority has
now decided to locate one of their admission test centres in Gangtok. This opens
another major opportunity for our young children aspiring to go for higher studies.
Respect Freedom and Collective Responsibility
We all agree that the responsibility of developing Sikkim has been primarily
left to the Government even after it became an integral part of India in 1975.
Everybody expects government to do everything for everybody’s needs. It is understandable
given the socio-economic and geographical profile of the State. However, Government
has its own limitations. Government can only go to a particular extent. After
that the responsibility of running various public affairs actually lie with the
people. I feel people and communities can run projects and establishments more
effectively both because of a sense of ownership and collective responsibility.
We can take example from any developed countries. Governments create facilities
which are ultimately run by the people. In every aspect of daily life, the contributions
of its citizens are more than the government. Whereas in our case, it is still
a Government centric development process. I have personally tried to address
people’s needs and requirements in a scale seldom found anywhere in the world.
We allocated maximum of our resources to provide immediate succour to people’s
suffering and hardship. On the basis of my accumulated experience on governance
for the last twelve years, I am now tempted to feel that making people over dependent
on Government is not a social progress. A totally Government dependent society
is not a healthy society as the people’s creative instincts and innovative talents
never flourish in such societies. This could even lead to the erosion in individual
confidence that may inject some negative complex in one’s personality. The people
of Sikkim, therefore, must rise up to the occasion and become proactive to attain
self-sufficiency. Hard work, innovation and creativity are what is required of
us. On this occasion, I appeal to the people to start their work and become the
master of their own destiny. After all, they say that there is no sweet without
sweat.
We may rightfully wonder as to what extent we are serious about our Fundamental
Duties as provided under Article 51A of the Constitution. Everybody has something
unique in him or her. Every Sikkimese including students, teachers, businessmen,
sportsmen, litterateurs, industrialists, doctors, engineers, academics, religious
heads, media persons therefore should come forward. And they should contribute
whatever they can in terms of social mobilisation, intellectual well-being, economic
progress and environmental conservation. If we have “social policing” led by
the people, half of our problems of governance will be over.
Having shared with you the broad highlights of the development profile proposed
for the year 2006-07, I would now like to present some specific aspects of the
budget for the coming fiscal year. The total budgeted expenditure for the year
2006-07 of Rs. 2504.61 crores comprises Rs. 879.64 crores under Plan account
and Rs. 1624.97 crores under the Non-Plan. Despite the fiscal limitations, we
have been bold enough to pitch the Annual Plan size at Rs. 550.00 crores for
the Annual Plan 2006-07. This outlay includes a one-time Central Assistance of
Rs. 20.00 crores agreed to by the Planning Commission for projects of special
interest to the State. In order to ease the burden of the Non-Plan gap, we have
kept an amount of Rs. 20.00 crores from the total plan allocation of Rs. 550.00
crores to meet the Non-Plan deficit. Allocation falling under the purview of
Centrally Sponsored Schemes, North East Council, Non-Lapsable Pool of resources
including provisions made as recoveries which are adjustable as reduction in
expenditure subsequently are all included in the total budgeted expenditure.
The financing of the Plan calls for a strong commitment to implementation of
fiscal reforms in terms of exercising a great sense of discipline in expenditure
control and adopting appropriate measures to improve our collection from tax
and non-tax revenue sources. Conscious steps will be taken to broaden the tax
base and streamline the institutional mechanism for bringing about efficient
tax administration. While the element of subsidies under various sectors will
have to be gradually phased out, concurrent measures will be taken to introduce
user charges duly ensuring high standards of quality in the delivery of services.
The Gross Revenue Receipt for the budget year is estimated to be Rs. 2170.34
crores against the Revenue Expenditure of Rs. 1922.66 crores thereby presenting
a revenue surplus of Rs. 247.68 crores. In these projections of Gross Revenue
Receipts, Rs. 119.02 crores are attributable from tax-revenue sources and an
amount of Rs. 1013.22 crores from non-tax revenue sources. The budget provision
anticipated under the Centrally Sponsored Schemes is Rs. 198.02 crores which
is provisional; under North East Council the provision is Rs. 47.84 crores, under
Non-Lapsable Pool of Resources Rs. 98.00 crores and an amount of Rs. 1698.29
crores under Public Account. The budgeted expenditure is inclusive of an amount
of Rs. 97.55 crores meant for earmarked schemes under the Additional Central
Assistance Package.
The budget for the year 2006-07 envisages receipt and disbursements as below:
(Rs. in crores)
(A) RECEIPTS
1. State’s Revenue
(a) Tax Revenue - 119.02
(b) Non-Tax Revenue - 1013.22
2. Grant-in-Aid from Government of India - 853.47
3. Shareable tax from Government of India - 184.64
4. Loans from other Institutions 171.60
5. Loans from Central Government - 37.85
6. Recoveries of Loans & Advances - 0.71
7. Contingency Fund (Recoveries) - 0.10
8. Public Account - 1734.84
TOTAL RECEIPTS: - 4115.45
(B) DISBURSEMENT (Excluding recoveries)
1. State Annual Plan - 530.00
2. Centrally Sponsored Schemes - 198.02
3. Non-Lapsable Pool Resources - 98.00
4. North East Council - 47.84
5. Non-Plan Expenditure - 1606.93
6. Public Account - 1698.29
TOTAL DISBURSEMENT: - 4179.08
(C) Years Deficit - (-) 63.63
(D) Opening Balance (2006-07) - (-) 56.36
(E) Closing Balance (2006-07) - (-) 119.99
Presentation of budget is a very special occasion for all of us. Hence, I see
no other opportunity as auspicious to reiterate our commitment and strengthen
our former vows. Our idea is to transform the entire society. When the hopes
and aspirations of every member of the society are fulfilled, we see the society
as a whole progressing and enriching. The British Prime Minister, Tony Blair
has correctly said, “When the society is weak, power and rewards go to the few
and not the many”. Hence, our commitment is the upliftment of society as a whole.
And today’s budget is also a way forward towards fulfillment of this dream.
As I present this Budget for the year 2006-07, I would like to reiterate and
announce:
* To continue to secure full safety and rights to the people of Sikkim
* To continue to address issues like the rural-urban gap by providing urban facilities
to the rural areas
* To bring about enhancement in the quality of electricity for all, safe drinking
water to all habitations
* Quality education for all
* More housing for all the left-out poor households
* Total sanitation
* To provide more opportunities and greater avenues for the educated youths for
self-employment outside government establishment.
* To observe the Year 2006 as the Capacity Building Year with a wide range of
training program, orientation camps and ‘professional and technical training
within and outside the State.
The State Government has been taking all possible measures to transform Sikkim
into an ideal welfare State. Socio-economic disparity and gender disparity so
prevalent in our traditional society is being dealt with through mass awareness
programs and also certain legislations. As we have entered into the 21st century,
we must lead Sikkim through a pool of human talents ensuring full human security
and dignity to the people. That means ensuring power and opportunity to each
person to make the most of what is within him or her.
Hon’ble Members will appreciate the fact that we have been able to maintain an
impressive growth rate of 12.95% in the Gross State Domestic product index (GSDP)
at current price over the period 1993-94 to 2004-05 as compared to the all India
GSDP growth rate of 12.48 % during the corresponding period. Sikkim has been
performing very well in several realms of development and is gradually emerging
as a hot-spot for prospective economic investment particularly in the context
of the impending opening of the cross-border trade with China. These conditions
need to be seen as opportunities to be seized for the optimum benefit of the
Sikkimese. India as on today, hosts over 70,000 crorepatis and Sikkim also has
a sizeable population with substantial resource for investment. I appeal to all
such resourceful Sikkimese to invest their idle capital in various emerging spheres
of business in the State. Such local participation in industrial investment would
significantly contribute to the growth of the economy of the State apart from
generating employment and containing resource drain from the State. I seek the
support and full cooperation of the Hon’ble Members of this August House to carry
forward our Government’s dedicated commitment to make Sikkim as a model State
of the country in terms of every socio-economic parameters of performance.
With these words, Hon’ble Speaker Sir, I now commend the Budget to this August
House for approval.
JAI HIND