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Wednesday, January 22, 2014

14TH fINANCE cOMMISSION VISIT TO sIKKIM.

 PRESS RELEASE

Gangtok, 22nd Jan: Dr. Y.V. Reddy, Chairman, Prof. Abhijit Sen, Ms. Sushama Nath, Dr. M. Govinda Rao and Dr. Sudipto Mundle, Members of the Fourteenth Finance Commission, and Shri A.N. Jha, Secretary, visited the State of Sikkim on January 21, 2014, to hold consultations with the State Government and key stakeholders.
The Commission met with the Hon’ble Chief Minister, his Cabinet colleagues and senior officers of the State Government, for discussions.

The Chief Minister in his speech welcomed the 14th Finance Commission and highlighted the following points:

  •         Share of Central taxes to the sates to be raised from 32% to 50% and a special dispensation for Sikkim;
  •         While considering the weightage for horizontal devolution, population of 2011 Census may be used;
  •         Need to consider measures to transfer all centrally sponsored schemes under state subjects with requisite funds and flexibility in the implementation of the schemes;
  •         Education and Health are the priority sectors for the state government;
  •                 Sikkim is the only state to allocate 20% of its financial annual allocation to the education sector, state has embarked on a scheme to enhance the employability of the local youth by establishing 43 livelihood schools;
  •         First state to provide free hepatitis B vaccination to children, Mission Healthy Sikkim and CATCH programme being the flagship programmes, Government is constructing a 575 bedded super specialty hospital;
  •         The Lonely Planet, the largest travel guide in the world has ranked Sikkim the number one region to visit in 2014;
  •                  Promotion of Village tourism, rural tourism and homestay as a means to diversify livelihood options and make tourism sector more village-oriented, people centric as well as eco friendly;
  •         Creation of Smriti Bans, biodiversity parks, butterfly parks and herbal gardens;
  •         50% reservation of seats for women at the Local Body level;
  •         The policy to devolve 70% of the annual outlay for rural development remains the cornerstone of the State development agenda;



The State Government submitted its Memorandum and made a detailed presentation on the finances of the State Government, its projection for the award period and gave its views on some of the Terms of Reference of the Commission. The Commission also interacted with representatives of Political parties, Panchayati Raj Institutions, Urban Local Bodies and Trade & Industry Associations.

The Commission placed on record its appreciation to the Chief Minister and State Government for the cooperation and support extended to the Commission and assured that the issues raised would receive due attention in the deliberation of the Commission. The Commission also looks forward to continuing interaction with the State Government.

The Commission will finalize its recommendations by October 2014 after completing its discussions with all the State Governments, the Government of India and relevant stakeholders.



The Hon’ble Chairman of the 14th Finance Commission Dr. Y.V. Reddy, in his address, complimented the State Government for the steady progress made in various sectors like tourism, forestry, human resource development. He stated that the Commission have noted the proposals and demands of the Government of Sikkim and would deliberate on them. He also suggested the need to continue the process of discussions through subsequent interactions.
Following are comments made by the Hon’ble Chairman, 14th Finance Commission, Dr. Y.V. Reddy:
1.       Sikkim is the fastest growing and a leading State of the Country
2.       Referring to the Chief Minister, the Chairman said, “Your Devotion to uplift the underprivileged is well known and deeply appreciated in the Country”.
3.       The insights provided by the State and the Chief Minister is deeply valued
4.       Sikkim is witnessing inclusive and participatory development

Subsequently, Members of the 14th Finance made their individual observations. They are as follows:
Professor Abhijit Sen, Member – “Sikkim has recorded the 2nd highest GDP Growth rate in the Country”

Ms. Sushama Nath, Member
        1.     “Sikkim exemplifies how a State can sustain development in the fields of  agriculture, education, environment and health”.
        2.       “Sikkim is a very diligent State in the Union of India. It has always made efforts to be in the forefront”

                            Dr. Sudipto Mundle, Member
1.       “A well governed, advanced and forward looking State”
2.       “Second richest State in terms of per capita income”

Dr. M. Govinda Rao, Member
“Sikkim is one of the most promising States in the Indian Union.”

Shri A.N. Jha, Member Secretary
“Perhaps one of the most distinctive and commendable features in the State is the pedestrian footpaths found nowhere else in the country, and I congratulate the Government of Sikkim on this”.



As per latest information received from the Government of India, the Ministry of Road Surface and Transport has recognized Sikkim as the least accident-occurring state in the Country.

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