Hon’ble Speaker and Hon’ble Members,

I convey warm greetings to all the members of the house and also to the people of Sikkim .

I would first of all like to convey my sympathies to the families of the five members of India Reserve Battalion Force who lost their lives under tragic circumstances at Delhi on 10 th March 2007 .

I am happy to announce that Sikkim’s plan outlay for the year 2007-08 has been fixed at Rs.691.14 crores, as against Rs.550.86 crores in the year 2006-07.

Planning Commission has indicated that the overall growth rate for Sikkim has been 7.79% in the period 2001-02 to 2004-05, as against 6.4% for the country. This figure is as per Compound Annual Growth Rate (CAGR) for three years (2001-02 to 2004-05) at constant prices. My Government proposes a growth rate of 7.79% for the year 2007-08 also. If we go by the current prices then from 2001-02 to 2006-07 there has been a double digit growth. Further, Planning Commission data also indicates a poverty ratio of only 20% in Sikkim , as against the All India average of 27.8%.

Our budget proposals have been formulated keeping in mind the objectives and the policy prescriptions envisaged in the 11 th Five Year Plan document of the country. This year marks the culmination of the X th Five Year Plan and from the next financial year, we commence the developmental activities for the XI th Five Year Plan while continuing with most of the policies of the Xth Five Year Plan. A number of new policies and thrust areas have been identified in the XI th Five Year Plan document. These have been incorporated in our budget proposals for the year 2007-08.

We are one of the best performing States in India with a number of positive indicators in crucial sectors. The achievement has been possible as there is peace, good governance and security in Sikkim . We are an insurgency free State with no communal and religious tensions. The peace and tranquility has therefore been the most important factor which has accelerated the development process in our State. This has been well reflected as the State won the best Tourism performing State in the North East for the 5 th time in 2005-06.

My Government has focused on the developmental strategies, which while enhancing the growth rate of development, provide employment opportunities for the youth. Efforts have been made to boost State revenue and to curtail infructuous expenditure.

Special attention has been laid upon providing effective governance with emphasis on decentralization, empowerment of the people at the grass root level and the involvement of the civil society in the development process. Our vision is empowerment of the people economically, socially, politically by democratic decentralization and by forging strong partnerships with agents of development like Panchayati Raj Institutions, Community Based Organizations and Non Government Organizations.

My Government is fully committed to the directives of the Central Govt. on earmarking of outlay under Tribal Sub Plan and Scheduled Caste Sub Plan of 20% for Scheduled Tribes and 5.6% for Scheduled Castes. With the inclusion of the Tamangs and Limboos as Scheduled Tribes their due facilities will also be taken care of.

Our objective is to encompass up-gradation of skills with modern technological inputs of the youth, the workforce and in particular of women to enable improvement in quality and cost competitiveness of local products including value addition activities and efficient and accessible marketing support. We are targeting Tourism, Human Resource Development, Horticulture & Floriculture as thrust areas, where scope for employment generation is felt to be considerable.

We have focused attention upon to the development of villages and the process of decentralization has been put in place. Panchayats and self help groups are being involved for service delivery.

My Government is in the process of preparation of second Human Development Report with technical assistance from United Nations Development Programme. In this process, Panchayats, NGOs, Academicians and members of civil societies are involved. Human Development concept being recognized at the international level as an important indicator in economic development, my Government has given importance to this in the sectoral allocation to the Social Sector. The Human Development approach in the 11 th Five Year Plan at the National level has been duly reflected in the 11 th Five Year Plan of the State.

My Government is committed to improvement in the quality of life of the common man, with special focus on those living below poverty line. The Scheduled Castes, Scheduled Tribes and other Backward sections of the people will be given all facilities as enshrined in the Constitution and to meet the objective of the State Government to give a larger focus to these communities.

The basic minimum needs of the People will be given priority. One of these is the construction of good road network, as also improvement of existing roads and bridges will continue. Development of rural road network under Pradhan Mantri Gram Sadak Yojana shall be continued for connecting the hitherto unconnected habitations, within the timeframe prescribed by the Govt. of India.

Under Panchayati Raj Institutions, my Government continues to take effective measures to build basic infrastructure and strengthening the administrative system. My Government has devolved funds at the grass root level. The budget proposals envisage that about 10% of funds will be directly earmarked for decentralization and devolution to the Panchayats. My Government is fully committed to the devolution of powers to the panchayats by way of establishment of administrative infrastructure, transfer of funds and functions which can be undertaken at the grassroot level. Further, 2% of the Plan allocations of all departments are being earmarked for training and capacity building purposes. In addition 1% and 2% of the capital outlay of some of the important works Departments is earmarked for Green Project in nurseries to ensure that development is balanced with proper environmental sustainability.

Block Level Offices throughout the State have started functioning. Funds have been devolved to the Block Development Officers. Representatives from various departments relating to the 29 subjects transferred to the Gram Panchayats would be in place in the Block Offices, so that the aspirations of the public can be met at the grassroot level itself.

In appreciation of the compliance of statutory provisions and effective adoption of the provisions of the 73 rd Constitution amendment in letter and spirit coupled with the innovative measures taken and also on the basis of its performance, Sikkim has been recognized as the 3 rd best State in the country in implementation of Panchayati Raj by the Ministry of Panchayati Raj, Govt.of India. Sikkim has also been given additional sanctions under the Panchayat Empowerment Accountability Incentive Scheme and has been awarded two cash awards of Rs. 1.20 crores and Rs. 64.88 lakhs which has been received respectively during 2005-06. The cash award has been utilized for construction of Panchayat Ghars in the 4 Districts and a Panchayat hostel at Chungthang in North District.

The institution of Local Self Government in urban area would also be in place in the State Capital, Gangtok before the end of the next year, to be followed by similar institutional structure in other urban areas. Taking into consideration the regional imbalances, my Government is considering the concept of Eco-City State . Under this concept, whole of the State is to be considered as a single unit. Study in this regard is being taken up. The aim is to promote and develop eco-friendly city State for which Bill is being introduced in the ensuing Assembly.

For improvement of the Urban amenities, my Government has taken action to avail of the resources available under the Jawaharlal Nehru Urban Renewal Mission, a flagship programme of the Central Government. Negotiations under the Urban Development Programme of the Asian Development Bank for Gangtok city are being carried out by Government of India. This would also benefit the outline areas.

Under the Externally Aided Projects, the AusAid Gangtok Water Supply and Sanitation programme has come to a close in the year 2005 with Technical Assistance of Rs. 23.00 crores. The project greatly assisted in building of Institutional capabilities and increased community awareness and empowerment. The phase III of the Indo Swiss Project assisted in areas of Rural Development and small farmers have been benefited. These two projects were in the form of 100% grant. The World Bank, 3 rd Technical Project for establishment of two polytechnics at a total cost of Rs. 59.62 crores at Advanced Technical Training Centre at Bardang and at Chisopani are almost complete.

The other initiative is by the Asian Development Bank in collaboration with Ministry of DoNER for Urban Development in the North Eastern Region. Under this programme, the feasibility and investment studies have already been undertaken by the ADB. Technical Assistance is expected to be provided for Gangtok city. The total project cost is estimated at Rs. 170.36 crores with Rs. 119.58 crores by ADB and Rs. 50.78 crores by Central/State Government. The aim of the project is to achieve sustainable Urban Development with economic development, improved infrastructure, investment programme and proper urban management. The project will also take care of poverty alleviation programmes.

Under the ADB assisted North Eastern States Roads Project, DoNER and ADB have identified 3 roads for improvement which are Melli Nayabazar Road , Nayabazar Namchi Road and Sang Rumtek Road at an estimated cost of Rs. 105.00 crores. Consultations and capacity building initiatives are being carried out. The Government has proposed 2 water supply schemes worth Rs. 24.16 crores and 2 power projects worth Rs. 50.00 crores to Japan Bank of International Cooperation for possible funding. Similarly, a proposal costing Rs. 50.00 crores for upgradation of the mother and child unit in the gynecology and pediatric Department of the STNM Hospital has also been submitted to the Government of India for funding under Japan Bank of International Cooperation.

The State Green Mission already started will be continued to make Sikkim a Garden State of India . This Mission would undertake plantation of trees and flowers on vacant land, wherever available. The process is proposed to be continued till such time that the barren lands throughout the state and the road sides are covered with greenery and flowers. A Bio-diversity park shall also be established during the year 2007-08, while continuing the “Smriti Van” scheme.

In the field of Science and Technology, the State Remote Sensing Application Centre has executed various projects and provided services to the users. Hon’ble Members are aware that the Sikkim Himalayas is a genetic treasure house of plants, animals and microorganisms collectively known as the bio-resource. In order to take advantage of this hot spot of bio-diversity and use the medicinal herbs, orchids and the wild plants in a sustainable manner, the Government propose to set up a bio-technology mission to be headed by the Chief Minister. The mission will be assisted by four eminent Scientists who will frame a policy on bi-technological aspects in the State. The broad objectives of the bio-technology mission would be to set up a state of art bio-technology research facility in Sikkim for sustainable development of bio-resource of the Eastern Himalayas through bio-technology. The mission has much more responsibilities and my Government is actively working in this line.

Under the Agri - Horti Sector a larger focus will be given in the 11 th Five Year Plan and there will be a forward leap and concerted initiative to achieve the economic potential existing under this Sector.

In the area of crop husbandry the thrust on organic farming shall continue. Stress shall be given to produce quality organic products, which command more remunerative market prices. The ongoing thrust upon rural composting, vermi composting and bio-fertilizer shall continue.

Farmers of the State and particularly the youth have exhibited a keen interest in floriculture. My Government proposes to provide further incentives. Due attention shall also be paid to concomitant marketing linkages. Setting up of a cold chain in association with Agriculture Promotion Export Development Agency (APEDA) would be a further incentive. Besides, the Government is also setting up a marketing outlet in Delhi with storage facilities to boost the sale of such products.

A substantial plan allocation has been made in the Human Resource Development Sector, in line with the objective of the Government for achievement of cent-per-cent literacy by the year 2015. The enrolment ratio of girl child vis a viz boys has improved from 90:100 in the year 1994 to 100:105 in 2005. As against, the literacy rate of 68.7% in the year 2001, which incidentally is more than the National average of 64.6%, an overall Literacy rate of 90% in the State, by the end of 11th Five Year Plan, is expected to be achieved. Government of India has agreed to provide a Central University in the state during 11 th Five Year Plan. The State plans to introduce courses which are relevant and are based on its natural resources. A Central School shall also be established at Namchi during 2007-08.

Management Information System (MIS) has been implemented at the Human Resource Development Department for recording, generation and better management of data. A tracking system has been developed to track drop outs. The vision of the 11 th Five Year Plan is to impart quality education through the development of manpower and infrastructure. For this purpose capacity building will be carried out by way of training of teachers and strengthening of District Institute of Education & Training (DIET).

Besides the various merit related scholarships which have been implemented, my Government proposes to introduce competitive scholarships at the school, district and State level to bring about a healthy competition and incentive for students. Computer literacy in schools is yet another thrust area.

Our State has a huge potential of 8000 MW of hydel generating capacity and the State has started the process of exploiting this potential by way of private and public participation. Private and public sector investors have been invited to develop 26 Nos. of hydel projects ranging from 25 MW to 1200 MW with targetted installed capacity of 4687 MW. In the State sector, a capacity addition of 10MW is expected in the coming year. Teesta Stage V is in an advanced stage of construction by the National Hydro Electric Power Corporation. My Government aims at reducing the losses in the Transmission & Distribution. Emphasis has been laid on completion of ongoing sub-transmission and sub-distribution projects, with the aim of reducing these losses by the end the 11 th Plan to less than 30% as against more than 53% in the year 2002-03. Keeping in view the immense power potential in the State, a long term Master Plan has been prepared with the help of the Power Grid Corporation of India Limited for power evacuation.

My Government has made significant progress in providing basic health care to the people. The endeavor of the State is to provide basic health services at the door steps to the rural populace. The National Rural Health Mission, a flagship programme of the Central Government is expected to help us considerably in our efforts. Significant land marks have been achieved. The crude birth rate has gone down from 21.6% in 2002 to 19.9% by 2005. Similarly, the crude death rate has also gone down from 5.8% to 5.1% during the same period. Immunization coverage has also increased to 90% as against 81% in 2002.

Tourism continues to remain one of the priority areas of my government. There has been a notable increase in the number of tourists visiting the state. The number includes both domestic and international tourists. My Government has proposed 80% increase in the outlay over the amount available in the Current Year. The state has adopted proactive marketing and publicity strategies to attract more tourists. Significant projects to attract tourists are the establishment of a tourist centre-cum-socio cultural and amusement park at Ranka as also Pilgrimage cum Cultural Centre at Solophuk are at an advanced stage. In addition, work on a pilgrimage and cultural centre at Ravongla would be taken up in a big way.

The State has been accorded the status of the Most Investor friendly State with minimum labour problems. Focus will be given to areas where investments can be enhanced. The opening of the Nathula trade route has been a historic land mark in the 10 th Five Year Plan and my Government will keep a continued effort in the 11 th Five Year Plan to enhance the status of the trade through Nathula Pass and expanding the required infrastructure with assistance from the Central Government.

I would like to mention that increased internal revenue generation would help in expanding the scope of developmental activities in the State and that my Government has taken a number of measures in this regard.

The performance of the Industrial sector will be evaluated and unviable units disinvested. My Government has already taken a decision to close down the Sikkim Mining Corporation.

Hon’ble members are aware that my Government has placed several political demands before the Government of India. The commitment of my Government is to protect the Bhutia, Lepcha minority community, their social rights and present facilities being enjoyed by them. My Government has already placed the demand before the Central Govt. for inclusion of Bhutia, Lepcha and Limboo languages in the 8 th Schedule. The Lepcha community has been declared as the Most Primitive Tribe by the State and efforts are under way to get this special status recognized by the Government of India. The other pending demand being pursued is the increase in the Assembly seats from 32 to 40 to provide reserved seats for Limboos and Tamangs in the Sikkim Legislative Assembly . The State has also demanded the inclusion of Most Backward Classes in the Scheduled Tribe list and Other Backward Classes in the OBC list of the Central Government. To give proper representation and voice in the Parliament, my Government has demanded the increase in the Rajya Sabha and Lok Sabha seats to two each.

The burning issue of extension of direct tax laws to my State has been vigorously pursued and my Government has sought for exemption of all Sikkim Subject holders and their descendents from the purview of these taxes.

Hon’ble members, I realize that your responsibilities are heavy. I am confident that with collective effort and wisdom, our State will meet all the challenges that may arise.

I am sure that the deliberations of the House shall be of the highest standards. I am confident that the state will achieve greater economic prosperity in the days and years to come. I convey my best wishes to all of you and wish you successful deliberations in the Budget Session.

Thank You.

JAI HIND.