Sikkim State Budget 2007-08 Analysis
ActualsTotal expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Sikkim FY 2007-08
Sikkim State Budget 2007-08 Budget at a Glance
Total Receipts
Rs 1,800 crore
(excl. borrowings)
Total Expenditure
Rs 2,180 crore
Fiscal Deficit
4.4%
Rs 180 crore
Capital Expenditure
Rs 580 crore
Tax Revenue
Rs 160 crore
Net to Centre
Interest Payments
Rs 200 crore
9% of expenditure
Sikkim Revenue Receipts 2007-08
Own tax revenue vs non-tax revenue breakdown
Sikkim Expenditure Breakdown 2007-08
Revenue vs Capital spending and department allocation
Revenue vs Capital Split
Fiscal Deficit as % of GSDP โ Sikkim 2007-08
The fiscal deficit for Sikkim in 2007-08 is 4.4% of GSDP (Rs 180 crore), reflecting the state's borrowing needs to fund development programmes.
States are expected to maintain fiscal deficit within 3% of GSDP as per the FRBM Act. Sikkim's deficit is above this threshold, driven by higher capital spending needs.
Interest payments at Rs 200 crore consume 9.2% of total expenditure.
Sikkim State Budget 2007-08 โ Receipts & Expenditure Summary
| Particulars | Amount | % of Total |
|---|---|---|
| A. Total Receipts | Rs 2,300 crore | 100% |
| 1. Revenue Receipts | Rs 1,800 crore | 78.3% |
| a. Own Tax Revenue | Rs 160 crore | 7.0% |
| b. Non-Tax Revenue | Rs 240 crore | 10.4% |
| B. Total Expenditure | Rs 2,180 crore | 100% |
| 1. Revenue Expenditure | Rs 1,600 crore | 73.4% |
| 2. Capital Expenditure | Rs 580 crore | 26.6% |
| of which: Interest Payments | Rs 200 crore | 9.2% |
| C. Fiscal Deficit | Rs 180 crore | 4.4% of GSDP |
Source: Sikkim State Budget Documents via PRS India. All figures in Indian Rupees.
Sikkim Budget 2007-08 Analysis & Highlights
Key Highlights
- Total expenditure of Rs 2,180 crore with revenue expenditure of Rs 1,600 crore constituting 73% of outlay
- Revenue receipts at Rs 1,800 crore with own tax revenue of Rs 160 crore reflecting a small but growing tax base
- Revenue deficit of Rs 200 crore as current spending exceeds current revenue
- Fiscal deficit at 4.4% of GSDP (Rs 180 crore), elevated for this tiny Himalayan state
- Capital expenditure at Rs 580 crore directed at hydropower construction and road connectivity
- Total outstanding debt at Rs 2,200 crore with debt-to-GSDP at 53.7% โ among the highest nationally
- Interest payments at Rs 200 crore consume 11.1% of revenue receipts โ a significant burden
- Non-tax revenue at Rs 240 crore includes hydropower royalties from Teesta basin projects
- GSDP estimated at Rs 4,100 crore โ India smallest state economy
- Market borrowings at Rs 80 crore supplement Central loans for infrastructure
- Central transfers account for over 80% of the state revenue base
- Pharmaceutical sector growth begins following tax exemption under NE Industrial Policy
Compare Sikkim Budget โ Recent Years
Year-over-year comparison of key fiscal metrics
| Metric | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 |
|---|---|---|---|---|---|
| Total Expenditure | โ | โ | โ | โ | Rs 2,180 crore |
| Revenue Receipts | โ | โ | โ | โ | Rs 1,800 crore |
| Capital Expenditure | โ | โ | โ | โ | Rs 580 crore |
| Fiscal Deficit (% GSDP) | โ | โ | โ | โ | 4.4% |
| Own Tax Revenue | โ | โ | โ | โ | Rs 160 crore |
Columns showing "โ" will populate as more data is ingested. Data from official budget documents via PRS India.
Understanding Sikkim State Budget 2007-08
The Sikkim state budget is the annual financial plan presented in the state legislature. It covers all revenue receipts, expenditure allocations across departments, and fiscal deficit management. State budgets are critical because states handle key development areas including education, health, agriculture, and infrastructure.
Sikkim Revenue Sources
State revenue comes from three sources: own tax revenue (state GST, stamp duty, excise, vehicle tax), non-tax revenue (fees, fines, interest), and transfers from the Centre (share of central taxes as per Finance Commission recommendations, plus grants-in-aid for specific schemes).
Fiscal Deficit and State Borrowing
Under the FRBM framework, states target a fiscal deficit of 3% of GSDP. States can borrow from the market via State Development Loans (SDLs), and the central government also provides loans. The RBI manages the borrowing calendar for states to ensure orderly market conditions.
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Compare Sikkim with other states
Side-by-side comparison of fiscal metrics across Indian states