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Sikkim State Budget 2019-20 Analysis

Actuals

Total expenditure, revenue receipts, fiscal deficit, and department-wise allocation for Sikkim FY 2019-20

Sikkim State Budget 2019-20 Budget at a Glance

Total Receipts

Rs 7,200 crore

+10.8%

Total Expenditure

Rs 8,500 crore

+18.1%

Fiscal Deficit

5.9%

Rs 1,300 crore

Capital Expenditure

Rs 1,500 crore

+25.0%

Tax Revenue

Rs 1,100 crore

+10.0%

Interest Payments

Rs 700 crore

8% of expenditure

Sikkim Revenue Receipts 2019-20

Own tax revenue vs non-tax revenue breakdown

Tax Revenue
Rs 1,100 crore (36.7%)
Non-Tax Revenue
Rs 1,900 crore (63.3%)

Sikkim Expenditure Breakdown 2019-20

Revenue vs Capital spending and department allocation

Revenue vs Capital Split

Revenue Expenditure 82.4%
Capital Expenditure 17.6%

Fiscal Deficit as % of GSDP โ€” Sikkim 2019-20

The fiscal deficit for Sikkim in 2019-20 is 5.9% of GSDP (Rs 1,300 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 700 crore consume 8.2% of total expenditure.

Sikkim State Budget 2019-20 โ€” Receipts & Expenditure Summary

ParticularsAmount% of Total
A. Total ReceiptsRs 8,800 crore100%
1. Revenue ReceiptsRs 7,200 crore81.8%
a. Own Tax RevenueRs 1,100 crore12.5%
b. Non-Tax RevenueRs 1,900 crore21.6%
B. Total ExpenditureRs 8,500 crore100%
1. Revenue ExpenditureRs 7,000 crore82.4%
2. Capital ExpenditureRs 1,500 crore17.6%
of which: Interest PaymentsRs 700 crore8.2%
C. Fiscal DeficitRs 1,300 crore5.9% of GSDP

Source: Sikkim State Budget Documents via PRS India. All figures in Indian Rupees.

Sikkim Budget 2019-20 Analysis & Highlights

Key Highlights

  • Total expenditure at Rs 8,500 crore under the new SKM government with ambitious development agenda
  • Revenue receipts at Rs 7,200 crore with own tax revenue at Rs 1,100 crore
  • Revenue deficit at Rs 200 crore as enhanced Central transfers improve the fiscal position
  • Fiscal deficit at 5.9% of GSDP (Rs 1,300 crore), elevated by the new government capital push
  • Capital expenditure at Rs 1,500 crore โ€” record level with infrastructure across sectors
  • Market borrowings at Rs 1,100 crore fund the expanded spending programme
  • Total outstanding debt at Rs 8,200 crore with debt-to-GSDP at 37.3%
  • Interest payments at Rs 700 crore reflect the growing cost of accumulated debt
  • Non-tax revenue at Rs 1,900 crore with strong hydropower royalty contributions
  • GSDP at Rs 22,000 crore as pre-pandemic economic momentum builds
  • COVID-19 arrives in March 2020, disrupting tourism โ€” Sikkim primary economic driver
  • Glacial Lake Outburst Flood (GLOF) risk on Teesta tributaries raises climate concerns

Compare Sikkim Budget โ€” Recent Years

Year-over-year comparison of key fiscal metrics

Metric2015-162016-172017-182018-192019-20
Total Expenditureโ€”โ€”โ€”Rs 7,200 croreRs 8,500 crore
Revenue Receiptsโ€”โ€”โ€”Rs 6,500 croreRs 7,200 crore
Capital Expenditureโ€”โ€”โ€”Rs 1,200 croreRs 1,500 crore
Fiscal Deficit (% GSDP)โ€”โ€”โ€”3.7%5.9%
Own Tax Revenueโ€”โ€”โ€”Rs 1,000 croreRs 1,100 crore

Columns showing "โ€”" will populate as more data is ingested. Data from official budget documents via PRS India.

Understanding Sikkim State Budget 2019-20

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.

Compare Sikkim with other states

Side-by-side comparison of fiscal metrics across Indian states