GOVERNMENT OF SIKKIM

BUDGET SPEECH

BY

CHIEF MINISTER

AND

THE MINISTER-IN-CHARGE

FINANCE, REVENUE & EXPENDITURE DEPARTMENT

ON 26th March, 2007

 

Hon’ble Speaker Sir and Hon’ble Members,

I stand here to present the budget for the year 2007-2008. Every budget is different because it reflects the changing aspirations and needs of the people. It carries in it the renewed commitment of the Hon’ble members of the Assembly to do the public good. It looks forward to give a new direction and momentum to the entire development agenda by both mobilizing and allocating resources in the best possible manner.

Before I go on to proceed with the presentation of the budget, I would like to offer my prayer for the five casualties of the IRB force in the unfortunate episode in Delhi on the fateful day of 10th March 2007. I also convey my heartfelt condolences to the bereaved families on the tragic loss of their dear ones and pray to the Almighty to grant them fortitude and endurance to cope up with the great loss that they have suffered. We know that this will not wane the morale of our force who have been contributing exemplary service to many establishments including diplomatic complexes in Delhi and elsewhere in the Country. We need to further consolidate and strengthen the integrity and confidence of our force posted across the country.

Hon’ble members, let me at the very outset say that this is the budget of the people and not the government in power alone. This budget is meant for all those who have faith on democratic principles, decentralization and devolution, social justice, collective happiness, community well being and national power. In his address to this august Assembly, His Excellency the Governor of Sikkim had presented a profile of the development scenario of the State. I shall delve into some of the core sectors of development reflecting on our vision, before I present the budget for the fiscal year 2007-2008.

This is special occasion more because with this budget we are launching the 11th Five Year Plan. For 12 years now, we have consistently devoted thinking, energy, time and resources to building a New and Prosperous Sikkim. Looking back we can see a significant numbers of milestones we have erected in our long journey. Every one knows how much we have collectively done. The country is agog with appreciation in our single-handed and solid achievements. Our mother nature is happy with the way we have respected her beauty and glory. And most importantly each Sikkimese household is contented with what they have received, enjoyed and owned in terms of both development and social attainments.

We achieved all our short term goals. From per capita income to literacy rate, Teesta V project to reopening of Nathu la trade route and from massive decentralisation to the setting up of Central University, we have been able to fulfill the dreams of Sikkimese people one after another. For 13 years we have consciously built institutions and human resources that would sustain and consolidate the societal harmony, community peace and political stability in our state.

People who could not talk under a suppressed and guided democracy are today boldly making political contributions. Women today are prideful and are in higher pedestal. They have come out of the yoke of social repressions and political marginalization. Scheduled castes, scheduled tribes and other backward classes are enjoying the warmth of affirmative actions and upward social mobilisation. Pro-poor programmes and actions have made them empowered and conscious enough to raise their right issue and fight for them.

Children and younger generation are aspiring to grab the larger opportunities both within and outside the State. Sikkimese no longer talks about identity crisis and being far away from national mainstream. Each Sikkimese is looked on by other fellow countrymen with high respect and eyes of equal strength. We have today what Nobel Laureate Amartya Sen calls the "freedom from fear". We are today the equal partners in the nation building process.

We have built peace, prosperity and social justice brick by brick and with great toils and travails. The challenge is to preserve this, protect this, sustain this and consolidate this.

After fulfilling most of our major electoral promises, now everyone seems to be quietly asking what is next?

Let me therefore, unfurl our next steps. These are our long terms goals. We want to make a big leap forward. In the last 13 years, we have been able to prepare a strong ground for what they describe as the "take off" stage. In order to optimally use this state of "take off" stage, we need to think big, act boldly and make gigantic achievements.

MEGA PROJECTS: Our Theme

This is why I have laboured to work on the theme of MEGA PROJECTS in this budget presented to the Hon’ble Members of the Sikkim Legislative Assembly and the generous and forward looking people of Sikkim.

We have increasingly realized that smaller projects have limited scope for both employment and income generation. We have also realized that we have done a range of small and mini projects. Time is ripe enough to undertake big projects. Therefore, we have embarked upon airport project, Central University project, double laning of national highway, bringing railway line upto Rangpo, a range of mega hydel projects and reopening of Nathu la trade route. We are launching the capacity building to support all these activities also as a mega project.

It is in this context, I would like to propose that the Horticulture and Floriculture projects also be given a mega programme status. Let this be a statewide mission where every one participates and everyone benefits. Our invitation to the famous Van Reign Group from the Netherlands is precisely to attain this bigger goal. Similarly we plan to bring bigger investors in education, health and tourism projects.

Performance Indicators

Let me present a brief overview to this august House about what we have achieved in the last ten years and also in the last fiscal year.

i) The gross domestic product (GDP) of the State increased from Rs.403 crores in 1993-94 to Rs. 1717 crores in 2005-2006. This means the gross state domestic product has increased by 4.2 fold after our government took over. Let us celebrate this achievement.

ii) The growth rate has been relatively much higher than the national average. During the last four years of the 10th Plan (2002/03-2005/06) the State GDP has grown over 13 percent per annum at current prices. If this is maintained Sikkim would for the first time achieve a two digit growth rate.

iii) The per capita gross domestic product recorded over three fold increase from Rs.8457 in 1993-94 to Rs. 29808 in 2005-06. This means our State recorded a 3.5 fold increase in the per capita income of each Sikkimese after our government took over. 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.

iv) Our social indicators are one of the richest in the country today. The National Family Health Survey (NHFS) Round 3 which was conducted in 2004-05 has just published its report. About Sikkim it mentions that:

§ Total fertility rate has gone down to 2.0

§ Percentage covered by institutional deliveries have gone up from 32 in 1998 to 49 in 2005

§ Antenatal care has gone up from 72 % in 1998 to 90 % in 2005

§ Contraceptive use coverage has gone up from 54 % in 1998 to 58 % in 2005

§ Vaccination coverage has gone up from 47 % in 1998 to 70 % in 2005

§ Trends in HIV/AIDS knowledge (ever married 15-49 women heard of AIDS) has gone up from 54 % in 1998 to 75 % in 2005

It is heartening to note that these figures were also mentioned by the very distinguished members of the national Planning Commission in the recently held plan discussion meeting in New Delhi. All of them were of high opinions about Sikkim as many of the other states performances have, in fact, gone down. The credit for all these go to the Departments, their heads and the staff members and the public who have made these happen. I congratulate and thank all of you for the commitment and your spirit high to achieve this status.

v) The latest Report of the Reserve Bank of India on the "State Finances a study of Budget 2006-07" adds another feather to Sikkimese hat. It mentions that Sikkim is the state which devotes the highest share of 31.3 percent of its budget to the social sector. This covers expenditure on social and economic services under revenue expenditure and capital outlays on similar social and economic services. This also includes loans and advances by state government on various items of social and economic services. The next state is Arunachal Pradesh with 25.4 percent share and Manipur with 21.1 percent. The all India average is as low as 5.9 percent.

vi) Sikkim boasts of the Lowest Crime Rate in the Country. The latest report of the Crime in India 2005, National Crime Research Bureau, New Delhi shows that Sikkim has the lowest number of Number of Cases Registered under IPC in 2005. This was hardly 552 as against lakhs in other states.

vii) Similarly the latest report of the Institute for Conflict Management, New Delhi published in October 2006 showed that Sikkim is one state in the country where there is no conflict and insurgency. It is an abode of peace and tranquility. It also showed that there are 36 Terrorist, Insurgent and Extremist Groups in Assam alone, another 36 in Jammu and Kashmir, 39 in Manipur, 30 in Tripura, 12 in Punjab and 4 in Meghalaya. And none in Sikkim. I would like to congratulate the people of Sikkim for this unprecedented feat.

viii) We are recognized for our strive and search towards excellence.

2006: we were declared No 1 State among 12 Eastern States by India Today. We are ahead of West Bengal also which was once considered as the industrial hub of our country.

2005: we occupied 3rd position in best performing state in Panchayat Raj as declared by Ministry of Panchayati Raj.

2005: we were given Skoch challenger award for best use of IT.

2005: we were declared the Best small state for Education by India Today.

2005: we were voted as the Best small for investment Environment by India Today.

We have brought home Tourism National award for best performing state for fifth consecutive years.

These were all possible because of our collective endeavour we made in the last 13 years. Before 1993 we only used to feel isolated and marginalised. Today we are in the forefront. Before we felt sad as we were in the backward state bracket. Today we are brimming with confidence and enthusiasm as a forward state. Let us keep it up.

For us every fiscal year brings fresh air, bolder achievements and newer hopes. Every year Sikkim gets a new applaud that makes every Sikkimese proud. Every year we are able to bring home a series of achievements. Each of these achievements makes Sikkimese holds their heads high both at the national and international levels. Each of these achievements also indicates the hard work and dedication of the people of Sikkim. Each of this unparallel achievement also manifests the determination and commitment of our Government to steadily climb the summit of human civilization and individual happiness.

Employment Opportunities

We have been able to bring so many employment opportunities in the State. We have a range of mega hydro projects. Nathu la trade route is now reopened. Many tourism projects are in place. Ample space has been given to the private agencies. The Central University is soon being established. We have shown so many ways and done so many projects in the areas of floriculture and horticulture.

However, how many Sikkimese have been employed in all these ventures and how many Sikkimese have opened their own ventures are questions that we are asking, my colleagues are asking and people are asking. Let me frankly state that our own people have not been able to grab these ample and huge employment opportunities fully as we expected.

Despite all these opportunities, we still talk of educated unemployment. We are still to empower our youths and general people in terms of seizing many attractive and lucrative offers in different sectors outside the government.

Our young boys and girls sill need to develop that essential knack and aptitude to work and exhibit societal commitment, will power and individual determination to excel and reach the top. All our parents are concerned. Being in the helm of affairs for last 13 years I see that we have work still harder.

For the sake of comparison, create these opportunities in other states and see how many claimants will be there for grabbing these jobs. Other states are struggling to generate these opportunities. Other children are crying for these opportunities. And in our state no one wants to talk about it also.

There could be various reasons for this. It may vary from our traditional thinking about jobs that are confined to government services and our educational orientation. It may be because we people in the hills have the anthropological trait of taking the life the way it comes. We in the hills seldom enjoy challenges. We in the government also feel that this is fundamentally because most of our young boys and girls do not have the right qualifications and appropriate skills to work in these ventures. It shows that there is something fundamentally wrong about the educational systems in our state. We only produce graduates and post graduates who can work in typical governmental organisations. This also shows that our students also do not want to take up challenges of good opportunities. They want to remain satisfied with governmental jobs. This also shows that our younger generation is still largely in the traditional inward looking framework. They still carry a burdensome past baggage.

This is certainly not a good sign for a state like ours which strives day and night to bring larger and better opportunities in the State. We all have to think about it seriously as all these opportunities are brought primarily to cater to the employment needs of our own local people. We bring this to meet the rising aspirations of our people.

This is the exact reason that I have been personally involved in discussing this critical issue with a cross section of our state and community. I have asked a young student about it. I have discussed with parents, my colleagues, officials, media, private sector, Panchayat representatives and of course experts from outside. Most of them have pointed out the lack of suitable qualification, capacity and skill to be the most crucial constraining factors for the younger lot to grab these opportunities. Some of them even say that there are no proper career guidance both at home and in their schools.

If this august house kindly recalls that for the first time I had proposed a Skill Development Fund in my budget speech of 2003-2004. The state government carried out a number of projects under this scheme. However, I feel we need to give it a much larger shape.

Directorate of Capacity Building

This is why I am proposing to set up of a full fledged Directorate of Capacity Building. This will be manned by experts and professionals. I would like to allocate Rs 10 crore to this Directorate. Besides each Department will have to allocate at least 2 percent of their annual expenditure to their respective capacity building programmes. The Panchayati Raj institutions will also have to set aside 2 percent of their total fund allocations exclusively for capacity building exercises.

This Directorate will fully dedicate itself to the capacity building programmes at all levels and in all fields of operations. I fervently hope that this Directorate will greatly cater to the needs of capacity building particularly among the younger generation in a big way.

Foreign Language Teaching

Another area where we have ample employment opportunities is to participate in the various commercial projects of countries like Korea, Japan and China. These are the three East Asian countries that are making huge investments in India. Similarly these are the countries with whom our trade and investments are increasingly done.

Let me cite some specific examples.

i) Korea’s trade with India increased from US $ 263.3 million in 2002 to US $ 832.42 million in 2006.

ii) China’s trade with India increased from US $ 1.82 billion in 2000 to almost US $ 24 billion in 2006.

iii) Japan’s trade with India increased from US $ 3.6 billion in 2000 to US $ 5 billion in 2005

iv) Korea’s investment in India has gone up from US $ 4.48 million in 2002 to US $ 9.9 million in 2006. The most successful investments are made by three large companies, Samsung, LG, and Hyundai. Their products vary from color television, electronic range, air conditioner, monitor, refrigerator to motor cars.

v) Japan invested around US$ 3.23 billion during 1991-2005. The top investing companies are Nippon Telegraph and Telephone Corporation, Toyota Motors, Mitsubishi Chemicals, Mitsui & Co., Fujitso Ltd., Merubeni, Suzuki and Honda Motors.

vi) Similarly, China’s investment in India is growing very fast.

 

Why I have given these figures about Korea, Japan and China is just to drive home the point that these countries are going to be India’s major commercial and investment partners. All these three countries have rather very low base level of English speaking people. Hence these companies will require a large number of people who speak their languages. Similarly Indian companies are also doing massive business and making investments in these three countries. Indian companies will also require a large number of Korean, Japanese and Chinese speaking Indian people to work with them. Software companies like Wipro, Oracle, IBM, Infotech and HP are making lucrative offers for the post of translators and interpreters.

A large number of tourists are coming to India from these countries and there will be increasing number of Indian tourists who would be visiting these countries. For a tourist communication is very vital. This means there will be huge scope to visit these countries for the young boys and girls who know these languages.

 

On top of this we are looking forward to increasing the quantum of India’s overland trade with China through Nathu la in a big way. We are also requesting the Union government to locate Special Economic Zone in Sikkim where we can invite a number of Japanese and Korean small and medium enterprises. Here also we require a large number of Korean and Japanese speaking people in our State.

 

We are also seriously thinking of training our nurses to go abroad. There are huge demands of nurses in Europe, Japan and United States as the number of aging people is very fast rising in these countries. They require nurses in big numbers. At the moment most of the demands for the nurses in these countries are catered by South East Asian countries like Philippines, Thailand and Indonesia and our own neighbouring country Sri Lanka. A nurse gets a monthly salary varying from Rs 1 lakh to Rs 2 lakhs in Japan. This is a very attractive venture for our nurses and dynamic youngsters.

 

I think Sikkim and Sikkimese will be culturally closer to Japanese, Korean and Chinese in terms of their many traditional habits and traits. Our people are friendly, warm and hospitable and hence we would fit the bills very well.

 

So we plan to create a huge pool of foreign language speaking Sikkimese so that they can cater to these rising needs. We would encourage our young boys and girls to learn a variety of foreign languages and be proficient. They can do wonders.

 

I therefore, set aside Rs 70 lakh for the year 2007-08 for promoting foreign language learning in the State. This fund will be operated by the Directorate of Capacity Building which will be concurrently set up in this fiscal year. If need be, we shall enhance this allocation further. Depending upon the responses of our people we ultimately plan to have a multi-language school in the University in Sikkim.

I also propose that our schools will start teaching foreign languages. The concerned Department will soon work out the details in consultation with the famous School of Languages in Jawaharlal Nehru University and other institutions. For this I allocate a sum of Rs 40 lakhs. Let us bring the best teachers available in the country in some of these crucial language including Korean, Japanese, Chinese, French and Spanish.

Agriculture: Our Mainstay

Though agriculture today contributes slightly over 20 % of the total state domestic product the population dependent on agriculture and allied activities would be more than 60 percent. I must admit that our agriculture sector is relatively weaker than both secondary and tertiary sectors. There are various reasons for this slow down in agricultural performance. In fact for the entire country a major concern is the relatively sluggish growth in the agriculture sector. We cannot afford to have slower growth in agriculture.

However, despite diversion of land for horticulture and other non-agricultural purposes, it is indeed heartening to note that there has been a significant increase of 9.30 % in the production of food grains from the year 2002-03 to 2005-06. This is indicative of the improvement in the level of productivity of farming activities with improved seed inputs and scientific technologies being judiciously transferred and applied at the field level through effective extension services. Special emphasis will be made in the area of seed production with supportive facilities for seed testing and certification so that the State will be fully self-sufficient with regard to seed requirements in respect of all major farm crops. The use of bio-fertilizer including vermi-compost will be encouraged in consonance with my Government’s policy to convert Sikkim into an organic State.

Sikkim’s inbuilt strengths are natural resources. Our main driving vehicles are horticulture, floriculture and medicinal plants. In all these, we will have very few matches within the country. In the harnessing of all these strengths we have however, been facing four serious difficulties. Firstly, we have not been able to produce many of these items in a commercial scale both because of lack of training and technological inputs. Secondly, the market access is very difficult and limited. Thirdly, there have been no serious R and D activities that are useful for the farmers in all these areas. Finally, there has been a lack of any substantive investment in all these sectors.

Given the scare land resource in our State, we would like to make big interventions in the horticulture-floriculture related activities as we would like to convert this as a main profession of our younger generation farmers and entrepreneurs. This will be in addition to what the horticulture mission would envisage in its prospective programs. The focus will be on seeds production, tissue culture, technology development and transfer, packaging, marketing network, production, storage and training and capacity building.

We would like to also bring private sector and foreign investors in this crucial activity area. In addition, I would also like to introduce concept of Technology Transfer Assistance involving the services of the Panchayats. Under this, Gram Panchayats could bring any appropriate technology that could help increase productivity, farm efficiency and production of any agricultural or horticultural crops. This technology could be brought from anywhere in India and abroad.

To complement various similar intervention, I would also like to stress on training and capacity building of the farmers in any of the agriculture related activities. These trainings could be located anywhere in India and neighbouring countries like Bhutan and Nepal.

Substantial investment could be conceived of in terms of crops diversification. Under this a farmer could be provided a soft loan by the cooperatives exclusively for the purpose of growing high value vegetables like mushroom, celery, broccoli, zucchini, artichoke, asparagus, green beans, snow peas, Brussels sprouts and leek and herbs like oregano, rosemary, thyme, sage and basil. There is huge market for all these vegetables both in India and abroad.

The Government will also now extend research grants to undertake research in areas of folk and traditional medicinal practices to the students in Sikkim. This may be related to research leading to Ph D degree or any independent research conducted under the guidance of a competent authority and noted institutions.

I also inform the members of this August House that all these development initiatives will be undertaken from the 2 percent allocation made in each department for training and capacity building.

Initiative on City-State

In the context of mega projects being introduced and with an objective of making a big leap forward, we would like to soon introduce a legislative action to undertake a new project known as "Initiative on City-State". The basic goals of this Initiative on City State will be as follows:

i) to develop the urban and rural areas together and bridge the development gaps so that we alleviate the existing inequalities.

ii) to bring all the urban amenities to the rural areas.

iii) to provide equal opportunities to both the rural and urban inhabitants.

iv) to undertake a massive planning and restructuring of urban affairs management. This means that we shall have very comprehensive urban planning so that all the development belts are scientifically located and designed.

v) to deconcentrate all the major development projects and related activities including tourism and gradually make villages as attractive as the urban centres.

vi) to discourage the migration from the rural to urban migration.

Gangtok is already a premier city. However, in the new concept of city state planning, the entire state of Sikkim will be like a city in terms of facilities, provisions and infrastructures. This is why I venture to call it a City-State. This will be done in full consideration of conserving the sanctity, beauty and glory of today’s rural Sikkim. For this we require a shift in the development strategy whereby planning can be taken up in the context of the State as a whole.

Given the small population, geographical size, natural habitat, nature of our societies, construction of our community life and various ecological locations, I am convinced that this initiative on city-state is a do-able action. It is something like Singapore, or Hawaii or even Japan. They are comprehensive and typical examples of City-State. If we seriously devote next ten years, I think we would be able to realize all these goals.

This means we shall have to frame a Development Planning Law based on the planning parameters in the City-State context. This also provides space for constituting an overarching Authority that coordinate and supervise Planning, Development and Local Governance at the State level. This will be given the mandate to undertake a comprehensive exercise for socio-economic planning and development, infrastructure development in both urban and rural areas in critical areas like road and transport, handling ecological management and building social amenities.

We want to map out where schools should be located, industrial belts to be set aside, the curvature of a road and the ribbon development on the road side for the State as whole. This Authority will also be entrusted with the role of over seeing the implementation of development plans related to urban and rural amenities. It would play the over-sight role for the local government institutions to ensure that democratic decentralization contributes to bringing about improvement in the quality of life of the citizens. I plan to make more detailed announcements in this regard in course of next few months.

Social Actions

Sikkim is one state where women folks are highly respected. We donot have any instances of female foeticide and dowry harassments which are otherwise rampant in many other states in India. We shall have to conserve this traditional value system at any cost. There are however, certain areas where gender sensitization is still required.

I therefore propose the following social security:

i) Old Age Pension to old persons above 65 to be raised from Rs 300 to Rs. 400.

ii) Maternity Allowance of Rs. 500 to be doubled to Rs. 1000.

iii) Appointment of a State Diagnostic Expert Committee to study and examine the critical issues of women education, health, environment, income, employment, socio-politico participation.

iv) The Government will also institute an award of Rs 50000 to the best NGO in Sikkim working in the field of woman and child development.

Relocating the Education Sector

Our State has done well in the education sector. However, we have to do a lot on four counts. Firstly, we must improve the enrollment ratio and drop out rates steadily. Secondly, we must improve the quality of education drastically. Thirdly we must largely upgrade the facilities in the Schools. And finally we must reorient the education system so as to meet the emerging challenges in the 21st century.

We are aware that education and related system is an ever-expanding concept which requires all-round attention and care. We must continue to work harder in terms of bringing about greater improvement in terms of teaching technique, trainings and student-teaching competency. Greater attention will have to be made in primary School level. In order to achieve our higher goals of quality education and greater access, we will diversify academic activities in DIET which would include enhancing the frequency of trainings of teachers and other capacity enhancement programs.

The entire State is very grateful and thankful to the Union Government for passing legislation to set up a Central University in Sikkim. This is a giant move in the education sector. An institution of higher learning was one of the long standing demands of our State. I would like to state that we plan to make this University a unique one in terms of physical structures, curriculum, research orientations, faculty recruitments and admission policy.

We shall have to rejuvenate the entire education sector as this is the foundation for any of our future development initiatives. Therefore, I am announcing the following measures which are to be implemented by the concerned Department in this fiscal year.

i) I announce creation, strengthening and greater streamlining of three separate Directorates in the Department of Human Resources Development. The first Directorate will look after only the primary education and the second Directorate will cover the secondary and the third Directorate will look after the higher education.

ii) I also announce the constitution of a State level Education Regulatory Commission consisting of officials, private sector, civil society members, professionals and experts to monitor the quality of education, oversee the performance of teachers, restructure the training facilities, supervise the maintenance of all the education related institutions in the State and over see the broad orientation of higher education policy and system in the State. Since we all want to keep away politics from the educational institutions, there will be no representatives of political parties or political leadership in this Commission.

iii) I also announce appointment of an Expert Committee to review the entire text book writing system in the State at all levels. The Committee will have experts from the State and outside also and would submit its report within timeframe as given by the Government.

In the meantime, the Department concerned will determine a fresh list of text book writers and experts and draw a New Plan of Action in refurbishing the entire text books.

iv) Let me also announce that the teachers training will now be made compulsory after every five year cycle, at all levels in both government and private schools. This means a teacher in his or her service tenure of 30 years will have to undergo training at least 6 times. The scale upgradation and other additional incentives will be conditional to the training undergone by teachers.

In order to enhance the level of exposure of the teachers in Sikkim to other schools and institutions outside the state, I would like to announce a new programme known as Adhyapan Kaushal Kosh ( Teaching Skill Fund) to which I set aside an annual fund of Rs 25 lakhs. This programme will be operationalised by the Department of Human Resources Development in order to send teachers from the State to other institutions outside the State and also to invite eminent teachers and educationists from other states to Sikkim for upgradation of knowledge, teaching skills, curriculum designs and pedagogy techniques.

Private Investments

The education sector remains one of the most potential tertiary areas for the purpose of investment and employment generation in Sikkim. The state has a distinct comparative advantage with regard to its climatic set up, geographical location and overall environmental quality. Education as an enterprise will be very vital in Sikkim. This state can be a major destination for the educational and professional institutions as it can attract students from all the neighbouring states, countries, and NRIs abroad. There remains a great scope for the private institutes imparting education on technical - traditional and modern- areas to work in Sikkim.

In fact, educational institutions triggered by private initiatives can reduce a tremendous outflow of Sikkimese resources that go on to educate the Sikkimese children outside Sikkim. On the other hand, these institutions can attract a whole lot of students from the neighbouring countries also, thereby internalising a whole range of benefits including tourism.

I would like to announce that the Government of Sikkim could provide easy access to land and other infrastructural facilities and also tax exemptions in case of the investment by the renowned private parties in the following ventures :

§ Technical institutions like engineering, medicine, architec­ture, computer science, biotechnology and environmental sciences.

§ Professional institutes like mass media, accountancy, corporate and environmental law, fashion technology, and tourism.

§ Management schools like rural management, hotel, business, and personnel.

Biotechnology Mission

The Sikkim Himalayas is a genetic treasure house of bio-resources comprising plants, animals and micro-organisms. Recognized world-wide as the bio-diversity hot-spot, the region is an active centre of evolution in respect of numerous genre pools having attributes which have many applications for sustainable development of the region. Given these facts, the application of bio-technology assumes utmost significance for the sustainable development and economic progress of the region. Against this background, I propose in this budget to set-up a Bio-technology Mission with the mandate to frame a comprehensive policy on all aspects of bio-technology pertaining to the State. The objective of this Mission would be to establish a state-of-the-art bio-technology research infrastructure, develop various strains of bio-fertilizers, explore possibilities for commercial exploitation of the scarce raw materials in our rich bio-sphere reserves with focus on medicinal and aromatic herbs and plants, undertake capacity building in bio-resources conservation and management and promote development of bio-technology parks associating leading institutional expertise in the country.

Out-migration Fund

India is the country that receives highest amount of remittances from its citizens working abroad. Remittances from overseas Indians have increased from $ 2.1 billion in 1990-91 to $ 21.7 billion in 2004 which constituted 10 % of the total global remittances. This made India the highest remittance receiving country in the world followed by China (US$ 21.3 billion), Mexico (US$18.1 billion), France (US $ 12.7 billion) and Philippines (US$ 11.6 billion).

Today the overseas Indians are estimated at over 2.5 crore spread across 110 countries. There are millions of Indian workers working abroad. Kerala, Andhra Pradesh, Maharashtra, Tamil Nadu, Gujarat and Karnataka are the states which send maximum number of workers from their states. For instance, in 2004 alone 4,74,960 people emigrated abroad for work purposes. Out of this 23 percent was from Tamil Nadu, 15 percent from Andhra Pradesh, 13 percent from Kerala, 6 percent from Maharashtra, 5 percent from Gujarat and another 4 percent from Bihar. Look how the economies of Kerala, Punjab and Gujarat have been transformed by the remittances, technology, knowledge, skills and capacity brought from abroad by their people who work in various foreign countries.

Out of these total 4,74, 960 workers who went abroad for jobs, 37 percent went to United Arab Emirates, 26 percent to Saudi Arabia, 11 percent to Kuwait, 7 percent to Oman and 6 percent to Malaysia.

As per the record of the Government of India, during 1998-2004 over 23,85,000 workers went abroad from India for work purposes. The number of people from Sikkim who went abroad during this period of 1998-2004 was only 37.

Sikkimese people are also equally capable of working abroad. If more and more Sikkimese go abroad for work purposes, they will bring knowledge, technology, skills, experiences and financial resources to the State. An upward social mobilization will take place in Sikkim. We shall become more outward looking. Our state will be known all over the world.

In the next 5 years, our government will make utmost endeavour to encourage Sikkimese people to go abroad for employment purposes. We will soon design a programme where we have information and knowledge about the opportunities abroad in a variety of jobs. Our State will coordinate with the Ministry of Overseas Indian Affairs of the Government of India. This exercise will be done by the Department of Sports and Youth Affairs along with the Department of Human Resources Development.

Monitoring and Evaluation

This august house will be delighted to know that our Government has been constantly striving to take the maximum benefits to the people from all the development projects and programmes. There are instances of delays in project implementation. There are cost over runs. There are incomplete projects and there are also possible leakages and misuse of funds. We have taken administrative and punitive measures to correct them in the past. Further we all have noticed that the fund allocations to the state will now be increasingly made conditional to proper monitoring and evaluation of the projects. This is true of both governmental and non-governmental sources of funds.

However, we increasingly realized that all projects actually require strict monitoring and evaluation. We need to make the system transparent by fixing responsibility and every individual related to the project accountable to the system, government and the people. We, in fact, need to institutionalise the entire mechanism. With a view to do so, we set up Directorate of Economics, Statistics and Monitoring and Evaluation (DESME). Now the second batch of officials is undergoing training in monitoring and evaluation in the Council for Social Development in New Delhi. I am told that over 200 officials belonging to various departments will be trained in next couple of months. I am of the firm belief that with this pool of trained officials we shall have a head on start on scientific monitoring and evaluation in the State. We need to give them adequate autonomy for their smooth functioning.

We have also seen that we are not able to use a huge chunk of funds given by the Union Government and the North Eastern Council on the ground that our Departments are not able to write the project proposal correctly, scientifically and convincingly. Since these project proposals do not meet the technical and other criteria, they are invariably rejected. I am of the firm belief that just by writing sound project proposals we shall be able to mobilise 20-30 percent more resources for our development in the State.

There are problems with the data, statistics and information supplied by various departments. On top of this, the Union government has its own mechanism to collect and disseminate these data. As a result, we have found that there are serious discrepancies in various available data. For instance, the drop out rates in the schools as mentioned by our HR Department and that are available with the Ministry of Human Resources Development vary quite a lot. There are problems related to samples, methodology, time period etc. We need to therefore, have one single source of data.

Let me make following few recommendations in this regard.

i) All the projects need to have a very sound monitoring and evaluation parameters in them before they are sent to the Development Planning Department.

ii) Our State will firstly hire experts and professionals for project designing and also train a group of people for such purpose. In order to expeditiously do so, we will again utilize the allocation made for the purpose.

iii) All the data and information will now be available centrally at the DESME. It will disseminate the same both within and outside the state. DESME will work in close coordination with various Departments in the State and also various Ministries in the Union Government both for collection and dissemination of data and information. All the Departments will regularly feed their data to DESME for updating and determination of the same.

All these new proposals related to monitoring and evaluation will be implemented by the Department of Development Planning.

Small and Medium Enterprises

We have been promoting small and medium enterprises in the state. As mentioned in the 11th Plan approach paper we would like to adopt cluster approach to the development of SMEs in the State. This new approach would provide these units with infrastructure, information, credit and support services of better quality at lower costs.

We have the most liberal investment and labour laws. Despite this we have not been able to attract as much investment as we want to in the State. After seeing what is happening in China and other South East Asian countries where a large number of SMEs have been set up we have realized that there is a huge scope for opening such SMEs in Sikkim also. For this we need to have special enabling laws and facilities. Given the geography, liberal investment environment, human resources and special natural resource endowments there are foreign and national investors who would like to invest in Sikkim.

I would like to urge upon the young Sikkimese entrepreneurs to open as many SMEs as possible. It could be a TV and computer repair shops to a modern printing press. It could also be a fast food joint to conference facility providing venture. We would make adequate provisions for their development in the State. This is also covered by the North East region investment policy.

In this context, we are also proposing to set up Special Economic Zone where many of the small and medium enterprise from both India and abroad could be located.

Environment and Green Mission

We need to further consolidate on our past investments in the area of environment & ecology. Towards this end in view, I propose to declare in this budget, the commissioning of the Environment & Green Mission with the sole objective of accelerating the process of greening the State over a reasonable time-frame. In order to make this Mission statement meaningful, I propose that while the SPWD (Roads & Bridges) & the RMD Departments shall apportion 2% of their budget allocation for executing avenue plantation activities as an in-built component of all road construction projects, all other development departments shall also set aside 1% of their plan budget for complementing the objectives envisaged under this Mission. The Hon’ble Members will appreciate that this initiative is primarily based on our avowed plan to make Sikkim clean, green and a garden state in the Country.

Expert Group on Study of Glaciers and Water Flow

There are reports of steady retreat of glaciers in Sikkim. It could spell disaster for Sikkim’s fragile economy and may even lead to devastating floods and ultimate dryness in river Teesta. This could be rather disastrous for the array of hydel power plants that are being built (planned) in the Teesta basin. It could also change the entire hydrological map of our region. Only a couple of days back the World Wide Fund for Nature (WWF) released its report entitled " World’s Top 10 Rivers at Risk" which mentioned that Ganga and Indus of India are at risk of drying up. It also included Africa’s Nile and China’s Yangze, America’s Rio Grande and Australia’s Murray-Darling. The recent reports that the Chinese Government has plans to divert waters in Brahmaputra to feed other drying rivers do also indicate the seriousness of the problem. I have raised this issue in the last meeting of the National Development Council.

However, I feel we should ourselves start the process of undertaking a very primary study at the State level. Therefore, I would like to propose the constitution of an Expert Group to study the state of Glaciers and its impact on water system in Sikkim. I set aside a sum of Rs 30 lakh for this purpose. The Department of Science and Technology would operationalise this project.

Eminent Persons Lecture Series

Many path breaking things are happening across the world. New techniques of production, newer concepts of national security, changed perceptions about educational systems are new vistas in international relations and foreign policy are widely witnessed. There are changing alignments among various development agencies, emergence of a large number of non-state actors, widening role of media, changing aspirations of youths and far reaching impact of globalisation. These are all discussed and deliberated upon in various national and international forum.

Sikkim and Sikkimese people should not lag behind in both thinking process and in sharing of information and knowledge. I believe, more we are near to the base of advancing global knowledge more we will be near to the process of civilizational growth. I also believe that a well informed Sikkimese community could take advantage of both national and international opportunities. Some one once said :

"The Great Thing in this World is,

Not so much where we stand,

As in what direction we are moving."

In the past we have done several intellectual exercises that have really benefited all of us. Now we would like to institutionalize the process. Therefore I would like to propose that the whole of fiscal year 2007-2008 we shall organize a series of lectures by eminent personalities in various fields. We plan to invite even the Nobel Laureates. This exercise will be done by the Department of Information and Public Relations.

Culture and Media

Our young boys and girls are extraordinarily creative and talented. Many of them do not get the opportunities to foster their latent talents and creativity. Our is an equal opportunity society and hence all the deserving talents should get equal exposures. I therefore, announce the following projects for this fiscal year.

i) The best video award of Rs 50000/-

ii) The best painter award of Rs 25000/-

iii) The best music award of Rs 25000/-

iv) The best sportsman award Rs 25000/-

v) The best singer award of Rs 25000/-

vi) The best theater award of Rs 25000/-

vii) The best journalist award of Rs 25000/-

viii) The best writer award of Rs 25000/-

All these awards programmes will be implemented by the respective Departments and awards will be given on the Sikkim State Day.

Keeping in view the crucial role played by the Media both as a watch dog and also in providing a correct picture of the entire Sikkimese affairs, I would also like to propose the setting up of media centers in all the district headquarters with basic communication facilities.

Nathu La Trade Package

Let me first read out a paragraph of what I said about Nathu la trade route in my budget speech last year.

"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."

It happened the way we all wanted to happen. Today we take pride in the way we have attained this major goal. However, I must tell you that our reopening of this border has changed the entire mindset of looking at the borders in a narrow security sense. Borders today are taken more as an opportunity. At the same time we have to do a lot if we have to get a good mileage.

We have already taken a number of measures including on infrastructures. This includes a 2 lane highway upto Nathu la. However, our major thrust at the moment is to widen our export basket in our trade with TAR and the mainland China. The role of private sector including traders, industrialist and tourism agencies are very vital in this. In order to give a more thrust to these trade and tourism promotional activities, a visit to TAR and other parts of Western and mainland China by a Sikkimese business and tourism delegates will be organized. Secondly, a regular study of the emerging product, services and tourism markets in TAR and mainland China will be undertaken on a regular basis. This will be implemented by the Department of Commerce and Industries.

Urgent Follow up

I would like to instruct all the Departmental and Sectoral Heads to immediately go into the action mode and operationalise these budgetary announcement and commitments within next fortnight.

Larger Goal of Politics

Today’s Sikkim was not made in one day. We all have worked very hard and sometimes under very difficult circumstances to build the State. Every one has contributed to the building of today’s Sikkim. The politicians and party workers, villagers and farmers, students and teachers, government officials and factory workers, media and businessmen, industrialists and professionals, children and women, old and young Sikkimese, professionals and skilled workers from outside the State all have toiled to make a robust and resilient Sikkim of today.

Today every body recognizes Sikkim. We have come out of the phase of national ignorance and negligence. Today the entire nation is curiously looking towards Sikkim and awaits as to what it does next. Policy makers in Delhi listen to us with rapt attention. They talk to us like equals. Our officials can talk to their counterparts on a one to one basis with confidence and full authority. Other states have started quoting Sikkim as an example. This is the result of our sound thinking, prudent action and honesty of purpose. This was made possible by our genuine dedication to peoples’ welfare.

I have personally devoted an overwhelming portion of my life to constructive politics. It is easy to reach the summit but difficult to remain there. I have showed utmost respect to my colleagues and party workers, I have showered profuse goodwill to all the officials and I have personally attended to the needs and requirements of all the Sikkimese. I have high respect for the opposition parties and have keenly listened to their suggestions. I regularly consult the entire spectrum of civil society.

In order to protect the people’s interest, I have myself undergone scores of very harrowing situations and experiences. I have taken them into strides and each experience has made me stronger. Each setback has given me more strength and grit to work for the people of Sikkim.

I have also found that despite such huge progress and sustained prosperity we have brought to the State and the people, that some people are bent upon highlighting only the ills and negative issues in a very destructive way. Given the chance they could destroy what we have built. They try to project a negative and poor image of Sikkim just to score one or two points here and there. But they do not realize how much harm they are doing to the people, society and the State. They donot know how it damages their already sagging image and corroded spirit.

I would therefore, like to appeal to the people of Sikkim to ignore such misleading and negative voices and defeat such destructive forces. We should uproot every thing that is dirty, indecent and harmful for the State and the country. That is why I have always said that our state should be a bastion of all decent, civilised and gainful professions (Swachha Pesha) and not indecent and demeaning professions (Aswachha Pesha). At the same time, we would like to assure the people that the entire nation knows what we are doing in Sikkim, how much we have traveled and how much we have achieved.

Having presented the current developmental profile and the proposals envisaged in the ensuing plan, I would now like to come to the budgetary specifics for the new fiscal year 2007-08 which is the first year of the XIth Five Year Plan. The annual plan size for the year 2007-08 has been fixed at Rs. 691.14 crores which represents an increase of 25.66% over the approved allocation for the year 2006-07. We have projected a total budgeted expenditure of Rs.3094.23 Crores for the year 2007-08 with a break-up of Rs.1104.38 Crores under Plan which is inclusive of allocations under NEC, NLCPR & CSS and Rs. 1989.85 Crores under Non-plan. The agreed Plan outlay for the year 2007-08 includes, a one-time Central Assistance of Rs. 65.72 crores for funding specific projects viz: construction of Raj Bhawan (Rs.6 crores) , development of Tourist-cum-socio-cultural and amusement park at Ranka ( Rs. 12 crores), Pilgrimage Centre at Solophok ( Rs. 13.69 crores), State share in the CSS for computer education is schools ( Rs. 2 crores), State Share in respect of the World Bank Projects for the two Polytechnics ( Rs. 4.22 crores), construction of High Court Building-Phase III ( Rs.5 Crores), Development of Cultural Central at Yangang ( Rs. 15 crores), Development of a Pilgrimage Centre at Rabongla ( Rs.5 crores) and land acquisition for the airport (Rs.2.81 crores). The gross budgeted expenditure includes allocations falling under the purview of Centrally Sponsored Schemes, the North East Council, Non-Lapsable Pool of Resources as well as provisions made as recoveries which are adjustable subsequently as reduction in the expenditure. To tide over the burden of the non-plan gap, we have set aside an amount of Rs. 2.00 Crores within the approved annual plan allocation.

Our firm commitment with regard to implementation of fiscal reforms in keeping with the broad prescriptions laid down by the Planning Commission will need to be pursued in earnest in the interest of bringing about positive improvement in the overall financial position of the State. While stringent measures designed to scale down the non-plan expenditure will be enforced, it is also imperative to find necessary ways and means to bolster the revenue collection efforts from both tax as well as non-tax sources. These initiatives will also be complemented with measures to levy user charges for public services duly ensuring high level of quality in the service delivery system. We have initiated steps to gradually withdraw concessions and also phase out subsidies under various sectoral activities. Our tax administration has been overhauled and adequately streamlined with a view to bringing about improvement and efficiency in the tax administration system. Specific focus has been given with regard to capacity building efforts and these measures will be continued in future to adequately strengthen and equip the resources of the tax machinery.

Projection of Gross Revenue Receipts for the 2007-08 budget year is Rs. 2764.40 Crores and corresponding to which I have proposed an amount of Rs. 2380.04 Crores on account of Revenue Expenditure. These projections would reflect a revenue surplus position to the tune of Rs.384.36 Crores. The contribution to the Gross Revenue Receipt presented for the budget year from tax-revenue, sources is Rs.144.66 Crores and in respect of non-tax revenue an amount of Rs. 1382.99 Crores has been envisaged. The budget projection includes provision of Rs.86.53 Crores from NEC funding, Rs.88.86 Crores under the Non-Lapsable Pool of Resources, Rs. 234.72 Crores under Centrally Sponsored Schemes which is a provisional estimate and Rs. 2164.08 Crores under Public Account. An amount of Rs.50.67 Crores has been reflected in the budgeted expenditure to account for specifically earmarked schemes under the Additional Central Assistance Package.

The highlights of the budget for the fiscal year 2007-08 with regard to receipts and disbursement are:-

(A) RECEIPTS AMOUNT( Rs.in crore)

1. State’s Revenue

(a) Tax 144.66

(b) Non-Tax 1382.99

2. Grant-in-aid from Govt.of India 975.05

3. Shareable Tax from Government of India 261.70

4. Loans from Other institutions 276.41

5. Loans from Central Government 15.45

6. Recoveries of Loans & Advances 0.51

7. Public Account 2164.08

Total Receipt: Rs. 5220.85

(B) DISBUSREMENT (excluding recoveries)

1. State Annual Plan 689.14

2. Centrally Sponsored Scheme 234.72

3. Non-Lapsable Pool 88.86

4. N.E.C. 86.53

5. Non-Plan Expenditure 1971.28

6. Public Accounts 2150.58

TOTAL DISBURSEMENT 5221.11

( C ) Year’s Deficit (-)0.26 Crores

( D ) Opening Balance ( 2007-08) 169.60 Crores

( E ) Closing Balance ( 2007-08) 169.34 Crores

Hon’ble Speaker Sir, I propose to dedicate our priorities during the ensuing plan to consolidation of our past investments. We are saddled with huge commitments on account of spill-over liabilities from the Xth plan involving various sectors particularly with regard to infrastructure. Our focus in the plan ahead will sharply address completion of all on-going projects. New initiatives will be subjected to strict pre-project appraisal based on purely need-based and socio-economic considerations. We will be more open to encouraging projects modeled on the Public-Private- Partnership (PPP) format particularly with regard to infrastructure. A good beginning has already been made in this regard with several hydel power projects which are in various stages of development. Similar initiatives covering other core sectors such as tourism, horticulture and urban infrastructure will also be explored adopting the PPP module. We already have some offers from prospective private investors in selected spheres of development which will be carefully examined with due consideration being accorded to fulfillment of the best interest of the State particularly with regard to securing employment opportunities to our local youths.

I conclude this by reminding and appealing to all the Hon’ble members of this august House and my very distinguished friends in the opposition that democracy demands discipline, tolerance and mutual regard. It specifically asks for sacrifice. Freedom demands respect for the freedom of others. In a democracy, changes are made by mutual discussion and persuasion and not by gossips and virulent attacks. Healthy democracy that has penetrated into each of the Sikkimese household is our biggest strength in Sikkim, the land of peace and tranquillity.

Let me salute this very solemn occasion by stating that:

PEOPLE PREFER TO FOLOW THOSE

WHO HELP THEM,

NOT THOSE WHO INTIMIDATE THEM SO….

I would end my presentation by sharing with you the paraphrased version of Buddha’s teaching which says,

Watch your thoughts; they become words.

Watch your words; they become actions.

Watch your actions; they become habits.

Watch your habits; they become character.

Watch your character; it becomes your destiny.

I very heartily dedicate this 13th budget of my government to the people of Sikkim.

Thank you

Jai Bharat

Jai Sikkim