sikkim tourism revenue

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Sikkim sees massive growth of the tourism industry post Covid-19

According to tourism department records, as many as 3.08 lakh domestic travellers visited the hill state of sikkim between october last year and march 2022, with january being the most profitable month for various stakeholders of the sector at 98,456 visitors..

Tourism industry, the mainstay of Sikkim 's economy, has got back on its feet since the lifting of the Covid 19 -induced lockdown late last year, officials said.

According to tourism department records, as many as 3.08 lakh domestic travellers visited the hill state between October last year and March 2022, with January being the most profitable month for various stakeholders of the sector at 98,456 visitors.

"We have seen a massive growth of the tourism industry with the arrival of large number of visitors from across the country since late last year after the lockdown was lifted by the state government,” a tourist department official told PTI.

As far as foreigners' footfall is concerned, 6,055 people visited Sikkim during the period, he said.

In 2019, the Himalayan state had recorded around 16 lakh tourist arrivals, and numbers, this year, too, are expected to rise over the course of the next few months, the officials said.

Travel agents, after a lull for almost two years, have breathed a sigh of relief.

"During the peak season, all hotels, stay homes and lodges were fully occupied. The state witnessed massive revenue generation after a while," SN Lachungpa, the president of Travel Agents Association of Sikkim (TAAS), said.

Almost 75 per cent of the local population depends on the tourism industry in Sikkim, directly or indirectly, official sources stated.

The temporary shutdown of the tourism industry had spiked unemployment rate in Sikkim, which stood at 10 per cent when the Covid-19 situation was at its nadir, as per the data provided by the state’s Directorate of Economics, Statistics, Monitoring and Evaluation

“Tour operators, hoteliers, traders, vendors and taxi drivers were among the worst sufferers,” Sikkim Tourism Development Commission Chairman Lukendra Rasaily said.

Rasaily estimated that the sector incurred losses in the range of ₹ 600 crore to ₹ 700 crore at that time due to restrictions on movement.

Sensing the distress of people, who were rendered unemployed by the pandemic, the state government had provided a financial support of ₹ 6,000 to all taxi drivers for livelihood, said Gangtok MLA Sonam Venchungpa, who is also the chairman of Economic Revival Committee set up by the Prem Singh Tamang government.

The committee has prepared a comprehensive report with recommendations for long-term support to the tourism sector which employs 78,800 people, to be the second highest behind agriculture as far employment generation in Sikkim is concerned, Venchungpa explained.

The report also proposed a support package of ₹ 200-250 crores in light of pending and incomplete tourism-related projects, he added.

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Currently Showing Sikkim State Level Aggregated Figures

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Sikkim is a land of abundant travel opportunities with snowy mountains, luxuriant forests with exotic flora and fauna, pristine waterfalls, sacred lakes, holy caves, medicinal hotsprings, cascading rivers and gentled streams. This category provides, information regarding Approved Hotels, Heritage Sites/Monuments, Passports, Tourism Projects and Financial Assistance, Tourism Schemes, Tourism Operators/Travel Agencies, Tourists and Others.

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Sikkim is certified as the first fully organic state in India and is considered as a cardamom epicentre of the world.

Sikkim State Report

Introduction.

Sikkim is surrounded by vast stretches of Tibetan Plateaus in the north, the Chumbi Valley of Tibet and the Kingdom of Bhutan in the east, the Kingdom of Nepal in the west and the Darjeeling district of West Bengal in the south.

The state is richly endowed with rare and exotic flora and fauna, which includes 5,000 species of flowering plants, 515 rare orchids, 60 primula species and 36 rhododendron species. This makes it one of the leading states in the Northeast region in terms of production and supply of cut flowers to mainland consumer markets. Of the 6,000 medicinal plants in India, over 424 plants (including the famous Artemisia vulgaris that is used as an antiseptic) are grown in Sikkim.

Sikkim has several snow-capped peaks including Kanchenjunga, the world's third-highest peak, that attracts a large number of tourists from across the globe. Tourism in Sikkim has emerged as the new profession of the Sikkimese people with its vast natural potential. Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flora-tourism and adventure tourism has given a fillip to the tourism trade in the state.

In September 2018, the Prime Minister of India, Mr. Narendra Modi inaugurated Pakyong Airport in Sikkim, the state’s first airport, which is expected to significantly boost the state’s connectivity. In 2022-23 (until August 2022), passenger and aircraft movements reached 10,543 and 222 respectively.

At current prices, Sikkim’s Gross State Domestic Product (GSDP) is estimated at Rs. 0.47 trillion (US$ 5.73 billion) in 2023-24. Sikkim’s GSDP is estimated to increase at a CAGR of 10.75% between 2018-19 and 2023-24.

In 2020-21, the secondary sector contributed 55.19% to the state’s GSVA at current prices. It was followed by the tertiary sector at 34.16% and the primary sector at 10.64%. At a CAGR of 15.45%, the primary sector witnessed the fastest growth among the three sectors between 2011-12 and 2020-21.

As of August 2022, Sikkim had a total installed power generation capacity of 704.72 MW, of which 75.92 MW was under central utilities, 415.11 MW was under state utilities and 213.69 MW was under the private sector. Of the total installed power generation capacity, 11.92 MW was contributed by thermal and 692.80 MW by renewable energy.

Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. Sikkim is the top producer of large cardamom, contributing over 80% to India’s total production. In August 2019, Sikkim was declared as world’s first 100% organic state by UN Food and Agriculture (FAO).

The government of India introduced the North East Industrial Development Scheme 2017, under which, all new industrial units located in eight northeast states in the manufacturing and services sector of the state were eligible for various incentives.

The state attracted Foreign Direct Investment (FDI) equity inflow worth US$ 6.35 billion between April 2000-September 2020 according to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

Key Sectors

• In April 2021, the South Korean delegation—comprising senior officials of the Embassy of the Republic of Korea, Korean Trade-Investment Promotion Agency (KOTRA), Korea Start-up Centre, K-Sure and Korea India Research & Innovation Center (KRRI)—met Sikkim state minister of tourism & civil aviation and commerce & industries Mr. Bedu Singh Panth to explore the feasibility of investments in multiple sectors in the state.
• In January 2021, Chief Minister Mr. Prem Singh Golay launched ‘Visit Sikkim 2022’, a declaration on year-long tourism promotion and marketing for Sikkim. He emphasised having tourists in Sikkim for the whole year, instead of otherwise practised season-based tourism endeavour.
• The Union Budget 2021, allocated funds worth Rs. 581 crore (US$ 80.14 million) to the central pool of resources for the north-eastern region and Sikkim.
• In March 2021, the cabinet approved an estimated cost of Rs. 9,129.32 crore (US$ 1.26 billion) to strengthen transmission and distribution in Arunachal Pradesh and Sikkim.
• In the Union Budget 2021, the government allocated funds worth Rs. 1,100 crore (US$ 151.73 million) to the Sivok – Rangpo project (length: 44.96 kms) in Sikkim.
• In March 2021, CCI (Competition Commission of India) approved the acquisition of a ~35% equity stake in Teesta Urja Ltd. by Greenko Mauritius. Teesta Urja is a special purpose vehicle established to carry out a 1,200 MW hydropower project in North Sikkim.
• On January 13, 2021, NHPC Limited signed an agreement for the implementation of the ‘Approved Resolution Plan’ for the takeover of the 120 MW Rangit-IV HE Project of Jalpower Corporation Limited (JPCL) in Sikkim.
• In 2019-20, the total production of horticulture crops in the state was expected to be 409.57 thousand metric tonnes and the area under production was 102.71 thousand hectares. In 2019-20, the total production of vegetables and fruits was estimated at 231.40 thousand metric tonnes and 55.45 thousand metric tonnes, respectively.
• Sikkim's geographical and environmental conditions are conducive to the development of floriculture at a higher altitude. The state is also considered to be the Kingdom of flowers and is an innovator in cultivating Gladiolus.
• Tourism in Sikkim has emerged as the new profession of the Sikkimese people with its vast natural potential. Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flori-tourism and adventure tourism has given a fillip to the tourism trade in the state where a large number of people are engaged under different employment opportunities. On January 30, 2019, Union Minister for Tourism inaugurated the first project under Swadesh Darshan Project at the Zero Point, Gangtok, Sikkim. The project was developed at a value of Rs. 98.05 crore (US$ 14.02 million).
• Sikkim is the only state which offers excise benefits and major players from the pharmaceutical industry have set up their manufacturing units in the state. A few of these are Cipla, Sun Pharma, Zydus Cadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharmaceuticals, and Unichem.

Geographical Area (sq km)

State language, literacy rate, key industries:, agriculture, floriculture, agro-processing, hydroelectric power.

Large cardamom

Electronics, pharmaceuticals, related sites, related news.

The High Level Committee (HLC) under the Chairmanship of the Union Home Minister, Mr. Amit Shah, has approved additional Central assistance under the National Disaster Response Fund (NDRF) to six States, which were affected by cyclone/ floods/ landslides during this year.

IFFCO's Organic Joint Venture, SIFCO (Sikkim IFFCO Organics Ltd.) has started the construction of Integrated Food Processing Units, at Rangpo, Sikkim. The project is worth Rs. 50 Crore (US$ 6.80 million) and expected to be completed by October 2021.

Raksha Mantri, Mr Rajnath Singh dedicated 44 major permanent bridges, to provide better connectivity to remote areas across seven states and union territories. He also laid the Foundation Stone for Nechiphu Tunnel in Arunachal Pradesh.

India ranked first in number of organic farmers and ninth in terms of area under organic farming, while Sikkim became the first State in the world to become fully organic.

Kolkata: India's Leading In-vitro diagnostic company Transasia Bio-Medicals Ltd has approved a Rs 50 crore (US$ 7.15 million) investment for the expansion of its manufacturing facility in Sikkim.

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Tourism back on track in Sikkim, say officials

Gangtok : Tourism industry, the mainstay of Sikkim’s economy, has got back on its feet since the lifting of the COVID 19-induced lockdown late last year, officials said.

According to tourism department records, as many as 3.08 lakh domestic travellers visited the hill state between October last year and March 2022, with January being the most profitable month for various stakeholders of the sector at 98,456 visitors.

“We have seen a massive growth of the tourism industry with the arrival of large number of visitors from across the country since late last year after the lockdown was lifted by the state government, a tourist department official told PTI.

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Among those 3.08 lakh domestic travellers that visited the hill state between October last year and March 2022, I was also one of them. During those 2 visits, we explored Gangtok mostly. MG Marg was very lively. The places in North Sikkim such as Lachung, Lachen, Yumthang are in my bucket list. Sikkim is one state that defintely stands out among the rest of the 7 states in Northeast India.

Thanks for your blog Lots of nice words in this article , nice to read , Do not stop.

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Gangtok, Jul 24 (PTI) Tourism industry, the mainstay of Sikkim’s economy, has got back on its feet since the lifting of the COVID 19-induced lockdown late last year, officials said.

According to tourism department records, as many as 3.08 lakh domestic travellers visited the hill state between October last year and March 2022, with January being the most profitable month for various stakeholders of the sector at 98,456 visitors.

“We have seen a massive growth of the tourism industry with the arrival of large number of visitors from across the country since late last year after the lockdown was lifted by the state government,” a tourist department official told PTI.

As far as foreigners’ footfall is concerned, 6,055 people visited Sikkim during the period, he said.

In 2019, the Himalayan state had recorded around 16 lakh tourist arrivals, and numbers, this year, too, are expected to rise over the course of the next few months, the officials said.

Travel agents, after a lull for almost two years, have breathed a sigh of relief.

“During the peak season, all hotels, stay homes and lodges were fully occupied. The state witnessed massive revenue generation after a while,” SN Lachungpa, the president of Travel Agents Association of Sikkim (TAAS), said.

Almost 75 per cent of the local population depends on the tourism industry in Sikkim, directly or indirectly, official sources stated.

The temporary shutdown of the tourism industry had spiked unemployment rate in Sikkim, which stood at 10 per cent when the COVID-19 situation was at its nadir, as per the data provided by the state’s Directorate of Economics, Statistics, Monitoring and Evaluation “Tour operators, hoteliers, traders, vendors and taxi drivers were among the worst sufferers,” Sikkim Tourism Development Commission Chairman Lukendra Rasaily said.

Rasaily estimated that the sector incurred losses in the range of Rs 600 crore to Rs 700 crore at that time due to restrictions on movement.

Sensing the distress of people, who were rendered unemployed by the pandemic, the state government had provided a financial support of Rs 6,000 to all taxi drivers for livelihood, said Gangtok MLA Sonam Venchungpa, who is also the chairman of Economic Revival Committee set up by the Prem Singh Tamang government.

The committee has prepared a comprehensive report with recommendations for long-term support to the tourism sector which employs 78,800 people, to be the second highest behind agriculture as far employment generation in Sikkim is concerned, Venchungpa explained.

The report also proposed a support package of Rs 200-250 crores in light of pending and incomplete tourism-related projects, he added. PTI COR KDK RMS RMS

This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.

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Sikkim registers record-breaking tourism surge

Sikkim is witnessing an unprecedented surge in tourist footfall in 2024. As per official data released by the Tourism and Civil Aviation Department, Sikkim has welcomed a staggering 2,90,401 tourists in the first quarter of the year, up till March 31, 2024. Among these, two 2,56,537 were domestic tourists, while 30,864 hailed from foreign shores.

This surge in tourism signals a promising rebound for Sikkim’s hospitality sector, which was severely impacted by the devastating Glacier Lake Outburst Flood (GLOF) in October, 2023. The calamity which wreaked havoc particularly in the northern part of the state claimed the lives of 43 individuals with over 70 still reported missing. Consequently, the tourist influx during the second tourist season witnessed a significant dip. However, with the current early trend indicating a robust recovery, Sikkim is poised to reclaim its status as a premier tourist destination, reported India Today NE .

Behind this resurgence lies a dedicated workforce of more than two lakh fifty thousand to three lakh individuals, directly or indirectly associated with the tourism industry. These include hoteliers, tour operators, taxi drivers, guides and numerous other stakeholders who form the backbone of Sikkim’s tourism sector.

The economic impact of tourism on the state is substantial with the industry estimated to have generated over 500 crores in revenue prior to the onset of the Covid-19 pandemic. As tourist numbers continue to climb, this figure is expected to witness a significant uptick providing a much-needed boost to the local economy, the report by India Today NE added.

Jumping into the infrastructure supporting this tourism boom, Sikkim boasts a robust network of 1,725 travel agencies and accommodations offering a total of 38,208 beds to cater to the influx of visitors. The transportation sector, a vital cog in the tourism machinery, comprises 2,206 registered luxury vehicles alongside 6,200 normal taxis and 12,232 smaller cabs. Additionally, there are guides and other minor bed and breakfast establishments collectively contributing to the seamless facilitation of tourist activities across the state.

A glance at the historical data reveals a steady upward trajectory in tourist arrivals over the past decade. From a modest figure of 576,749 visitors in 2013, the numbers have witnessed a remarkable surge, reaching a peak of 1,625,573 in 2023. The year 2024, with its promising start, is on track to surpass previous records, with projections indicating a potential milestone of 1.2 million tourists by year-end if the current growth rate persists.

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CH A PTER -3 TOURISM IN SIKKIM -AN ANALYTICAL PERSPECTIVE

Related Papers

ANJAN CHAKRABARTI

JMRA Publication

Sikkim is the smallest state of India with rich culture, heritage, and natural biodiversity. Beautiful landscape, rivers, lakes, forests, mountains and cold desert, there is everything here one can dream of a place. Eleven areas in Sikkim as ecotourism zones have been identified and distinguished by The Directorate of Ecotourism under the Forest, Environment and Wildlife Management Department which is developed under JICA assisted Sikkim Biodiversity Conservation and Forest Management Project (SBFP). The objective of this paper has explored the status and prospectus of Ecotourism Development in Sikkim. For the study secondary data has been used in the form of published research articles and Sikkim government " tourism and ecotourism Policies etc. It can be concluded that Sikkim has a great potential for ecotourism development while following sustainable practices. It was found that that the locals participate in ecotourism activities only for enjoying economic benefits either in the form of increased job opportunities, income or improved infrastructure and tourists had favorable attitude towards ecotourism experience but there is a need to retain a balance between conservation of natural and cultural resources and provide economic development with regular growth.

Kurukshetra: A Journal of Rural Development

Binod Bhattarai

The Key factors driving indigenous involvement in Ecotourism include gaining legal rights to land, preventing other extractive land uses and cultural reviaval. Indigenous ecotourism will sustain and conserve natural areas, maintain Indigenous lifestyles and provide benefits for Indigenous communities. The fact that tribal population in Sikkim has an appreciable ownership of landed property in the state facilitates their easy participation.

puspita sengupta

The heavy influx of tourist in Pelling West Sikkim replaces natural forests by concrete jungle through increasing the number of hotels. Approximately 1.7 lakhs tourists, both domestic and international, visit Pelling each year creating a congestion of life in a peak season resulting into some prolonged implications on the infrastructure, environment, natural resources, and culture of the state as a whole. So tourism development and environmental management should be integrated to develop the tourism policies of Sikkim, which will lead towards the sustainable environment for better future.

Dr. PRAVEEN RIZAL

Abstract The present study examines the impact of tourism industry on regional economic and health status in Sikkim state. Tourism industry is a largest contributor on the state economy and an important industry in Sikkim state. The growth and development in tourism has contributed in the socio-economic development in the state. Tourism is also resulting in the improvement in the health status of people in the region. The increase of inflow the tourists in Sikkim state resulted in the economic benefit in the regional. The percapita Gross State Domestic Product is increasing along with the growth of the tourism sector. The average annual growth rate of Gross State Domestic Product was 10.7 percent from 2004 to 2009 and the average annual growth rate of inflows of tourists was 18.4 percent. In the year 2004-05 the population below poverty line was 30.9 percent which decreased to 13.1 percent in the year 2009-10. Tourism has its indirect impact on the health status. Tourism is providing the income and employment to the people and thereby making economically sound, which results in improving the health status. Tourism is helping in reducing poverty and boasts the regional economy, which has indirectly leads to the better standard of living and improved health status of the people of Sikkim. Keywords: Tourism, Health, Sikkim, poverty

Trade through Nathula pass route is one of the three open trading border posts of India in the Himalayan mountain boundary of Sikkim State. It is an oldest Pass from Sikkim to Tibet, now TAR-China (Tibet Autonomous Region-China). The continuation of cross-border trade from Nathula Pass on 6th July, 2006 gave the way to more benefits to India through trade along with the promotion of the tourism in theregion. After reopening of India-China cross-border trade on 6th, July 2006 through Nathu La pass, it not only shows a benefit in trade but there is a growth of tourism in this region. With the increasing inflow of tourists to NathuLa, the economic benefit is open the region and its people. In this context, the present study examines the impact of reopening of cross-border trade through Nathu La pass on the promotion of tourism in the region. The rising trend of exports shows the positive impact of Nathula trade to India. The data, obtained through secondary sources shows that the exports of Indian goods to China is more than imports. The export of Indian goods to China has increased from 8.87 Lakhs in 2006 to 4.02 Crores in 2010. The import for the year 2010 is Nil against 4.02 crores of exports. With the rising trend in the volume of export, it is clear that the cross-border trade through Nathula Pass is beneficial to India. The impact of reopening of Nathu La pass for trade between India and China is not only results in economic benefits from trade but also results in the promotion of tourism in the region and its impact on tourism.The study revealed that there is a growth in the tourism after the reopening of Nathu La pass for international trade and expected to grow further more in the future, providing the income and employment to the local people but along with maintaining the sustainability in the region. The sustainability of tourism, in this highly natured sensitive zone, is equally important and most. The further research is required to analyse the tourism and its sustainability in the region. Keywords: Cross-border trade, tourism, Nathu La, Sikkim

Dr. Rinzing Lama

JOURNAL OF INTERNATIONAL ACADEMIC RESEARCH FOR MULTIDISCIPLINARY Impact Factor 1.393, ISSN: 2320-5083, Volume 1, Issue 10, November 2013

The present study is a pioneer attempt to examine the impact of tourism on economic growth in Sikkim state. Tourism is one of the important services providing industry in Sikkim state. Its rapid growth contributed in the socio-economic development of the region. The increase of tourists’ influx resulted in the economic benefit to the regional economy by providing income and employment to the local community people. The growth of real GSDP percapita is used as a measure of economic growth. The statistical test shows that there is a positive correlation between Percapita GSDP and tourists’ influx. There is enormous increase in tourists’ inflows to Sikkim in last decade, which shows it growth in tourism. The Percapita GSDP is increasing significantly over a period of time along with the expansion of the tourism sector. It has increased from Rs. 17428 (1999-00) to Rs. 29506 (2008-09). Trade, tourism, hotels, transportation, and agriculture have been found as key drivers to GSDP. The estimated average annual growth of real GSDP percapita is 6.3 percent. This study shows that the tourists’ inflows have its positive impact on the regional economy. It shows the growth of tourism and its contribution to the economy.

nepjol.info

Basudev Upadhyay

Abstract Ecotourism has emerged as one of the development tool, which aims to protect the natural environment and cultural diversity by attracting the ecotourism and generating revenue for the local people without harming nature. Growing share of world tourism arrivals that in return assures increased length of stay, visitor’s expenditure and the income retained within the region is under noticed in the region. Tourism being one of the most essential aspects of sustainable development of both Himalayan countries India and Bhutan, the cooperation among the two nations can have a prominent impact on the development of both the countries through more friendly and cooperative policies. The region should ensure that the visitors experience a safe environment and unique hospitality, with awareness on the part of resident populations for the opportunities that tourism presents and on the part of visitors, an appreciation of the special characteristics of the region. The region’s highly distinctive environment and culture need to be conserved for the maximum benefit to retain the regions unique identity. It is noted that both countries have their own tourism policies and action plans. The formulation of policies that addresses the place and people in the adjoining transboundary region of Bhutan and India could have an outreaching impact and the promotion of tourism in the transboundary region to foster the tourism business. Regional tourism is not much flourished in this region. International Centre for Integrated Mountain Development has been instrumental in facilitating regional cooperation through its transboundary conservation initiatives. ICIMOD’s Regional Cooperation Framework developed through consultative processes harmonizes national policies and legislation towards effective management of Khangchendzonga landscape and has been a key to achieving environmental and economic sustainability among the countries sharing this complex. Promoting nature tourism on this framework can have a maximum benefit to the livelihoods of the people and the environment. The article share the overview of the existing regional tourism status concerning two regions: Sikkim in India and Bhutan and points towards the need for further regional cooperation in bringing effective regional tourism. This paper also aims to look forth the tourism potential in the region and promote nature based ecotourism through transboundary cooperation in Indo-Bhutan region. Keywords: tourism, nature, sustainable development, regional co-operation

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Sikkim's tourism sector suffers 50 per cent decline in tourists

Many hoteliers in gangtok, the capital city, have reported a decrease in tourists and pre-bookings over the past six months..

• May 15, 2023,
• Updated May 15, 2023, 8:27 PM IST

Sikkim is heavily reliant on its tourism industry for its economy. However, it has suffered a major blow due to the Covid-19 pandemic, with a 50 per cent drop in visitors since before the outbreak. According to data, the months of April, May, and June have seen a sharp decline in tourism, resulting in a significant loss of income for the state.

Many hoteliers in Gangtok, the capital city, have reported a decrease in tourists and pre-bookings over the past six months. The Sikkim Hotel and Restaurant Association, the apex hoteliers association, has also received feedback that bookings and tourist footfall have decreased by at least 20 to 40 per cent.

Shradha Sharma, the President of Sikkim Hotel and Restaurant Association, acknowledged that Gangtok-based hotels have received fewer tourists in the last two seasons. "This time from last October, November and December tourist season also many Gangtok based hotels have received less tourist and now this current season that is from March till May there were not such footfall Gangtok have received that may be the case with the Gangtok only but there is a decline in 20 to 40 percent of tourists footfall," she said.

Lukendra Rasaily, Chairman of Sikkim Tourism Development Corporation (STDC), provided a different perspective. "The tourist footfall has increased if we go by our data, and it has increased yes. But this time the pattern has changed normally tourist footfall remained Gangtok-based, but now under the new leadership of SKM-led government, more tourists are visiting rural parts, so we have data that Sikkim has received more tourists than in previous years," he said.

According to the STDC, Sikkim has received 366,980 tourists in the last three months, which is higher than the previous year's 308,130. Rasaily believes that the state's efforts to promote tourism in rural areas, along with an increase in homestays and hotels, have contributed to the growth in tourist footfall. Despite the challenges posed by the pandemic, there is hope for Sikkim's tourism industry to bounce back in the near future.

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Sikkim Budget Analysis 2023-24

The Finance Minister of Sikkim, Mr. Prem Singh Tamang, presented the Budget for the state for the financial year 2023-24 on May 17, 2023.

Budget Highlights

The Gross State Domestic Product (GSDP) of Sikkim for 2023-24 (at current prices) is projected to be Rs 47,331 crore, amounting to growth of 17.1% over 2022-23. [1]  

Expenditure (excluding debt repayment)  in 2023-24 is estimated to be Rs 11,510 crore, an increase of 5% over the revised estimates of 2022-23.  In addition, debt of Rs 296 crore will be repaid by the state.

Receipts (excluding borrowings)  for 2023-24 are estimated to be Rs 9,363 crore, an increase of 3% as compared to the revised estimate of 2022-23.  In 2022-23, receipts (excluding borrowings) are estimated to exceed the budget estimate by Rs 670 crore (increase of 8%).

Revenue surplus  in 2023-24 is estimated to be 0.1% of GSDP (Rs 42 crore), much lower than the revised estimates for 2022-23 (2.1% of GSDP).  In 2022-23, the revenue surplus is expected to be much higher than the budget estimate (0.2% of GSDP).

Fiscal deficit  for 2023-24 is targeted at 4.5% of GSDP (Rs 2,147 crore).   In 2022-23, as per the revised estimates, fiscal deficit is expected to be 4.7% of GSDP, higher than the budget estimate of 4% of GSDP.

Policy Highlights

Climate Change:   The state shall appoint a high-level Climate Change Impact and Mitigation Commission to study the impact of climate change and recommend short and long-term mitigation strategies.

IT Infrastructure:  The state government has initiated a project to provide internet via fibre optic cables in the Soreng and Pakyong districts at a cost of Rs 120 crore.  

Multi Village Water Supply Scheme:   The scheme will be set up under the Jal Jeevan Mission, to provide piped water to 6,355 households in 12 villages at a cost of Rs 133 crore.  

[1]  GSDP figures are not available in the budget documents.  Figures used in the analysis have been back-calculated using consolidated debt figures in the Budget at a Glance document.

Budget Estimates for 2023-24

Total expenditure (excluding debt repayment)  in 2023-24 is targeted at Rs 11,510 crore.  This is an increase of 4.7% over the revised estimate of 2022-23.   This expenditure is proposed to be met through receipts (excluding borrowings) of Rs 9,363  crore  and net borrowings of Rs 2,296  crore .  Total receipts for 2023-24 (other than borrowings) are expected to register an increase of 3% over the revised estimate of 2022-23.

Revenue surplus  in 2023-24 is estimated to be 0.1% of GSDP (Rs 42 crore), significantly lower than the revised estimates for 2022-23 (2.1% of GSDP).   Fiscal deficit for 2023-24 is targeted at 4.5% of GSDP (Rs 2,147 crore), slightly lower than the revised estimates for 2022-23 (4.7% of GSDP).

In 2022-23, fiscal deficit is expected to be higher than the budget estimate by 0.7 percentage point of GSDP.  The fiscal deficit for 2023-24 is much higher than the maximum limit (3.5% of GSDP) allowed by the central government.  Sikkim’s higher fiscal deficit is due to the loan from central government for capital expenditure which is over and above the borrowing ceiling.  Without these additional borrowings, fiscal deficit is estimated to be 3% of GSDP for 2023-24, which is within the limits set by the central government.

Revenue surplus is expected to rise by Rs 790 crore over the budget estimates in 2022-23 (1200%).  This may be on account of an 8% increase in revenue receipts (other than borrowings) in 2022-23 over budget estimates.  

Table  1 : Budget 2023-24 - Key figures (in Rs crore)

Note: BE is Budget Estimates; RE is Revised Estimates. Sources: Budget in Brief, Annual Financial Statement documents, Sikkim Budget 2023-24; PRS.

Expenditure in 2023-24

Revenue expenditure  for 2023-24 is proposed to be Rs 9,321 crore, an increase of 13% over the revised estimate of 2022-23.  This includes the expenditure on salaries, pensions, interest, grants, and subsidies.

Capital outlay  for 2023-24 is proposed to be Rs 2,188 crore, a decrease of 21% over the revised estimate of 2022-23.  Capital outlay indicates the expenditure towards creation of assets.

Table  2 :  Expenditure budget 2023-24 (in Rs crore)

Sources: Annual Financial Statement, Sikkim Budget 2023-24; PRS.

Committed expenditure:  Committed expenditure of a state typically includes expenditure on payment of salaries, pensions, and interest.  A larger proportion of budget allocated for committed expenditure items limits the state’s flexibility to decide on other expenditure priorities such as capital outlay.  In 2023-24, Sikkim is estimated to spend Rs 5,410 crore on committed expenditure, which is 58% of its estimated revenue receipts.  This comprises spending on salaries (34% of revenue receipts), pension (14%), and interest payments (10%).  Committed expenditure is expected to increase by 7% over the revised estimate of 2022-23.  This will primarily be driven by increases in interest payments and pension expenditure.   Interest payments are expected to increase by 24% (Rs 180 crore) in 2023-24  while pension expenditure is expected to increase by 16% (Rs 182 crore).   Expenditure on salaries is expected to decrease by 1% (Rs 19 crore).  

Table  3 : Committed Expenditure in 2023-24 (in Rs crore)

Sources: Budget in Brief and Annual Financial Statement, Sikkim Budget 2023-24; PRS.

Sector-wise expenditure:  The sectors listed below account for  59%  of the total expenditure by Sikkim in 2023-24.  A comparison of Sikkim’s expenditure on key sectors with that by other states is shown in Annexure 1.

Table  4 : Sector-wise expenditure under Sikkim Budget 2023-24 (in Rs crore)

Receipts in 2023-24

Total revenue receipts  for 2023-24 are estimated to be Rs 9,362 crore, an increase of 3% over the revised estimate of 2022-23.  Of this, Rs 2,806 crore (30%) will be raised by the state through its own resources , and Rs 6,557 crore (70%) will come  from the centre.   Resources from the centre will be in the form of state’s share in central taxes (42% of revenue receipts) and grants (28% of revenue receipts).

Devolution:   In 2023-24, state’s share in central taxes is estimated at Rs 3,963 crore, an increase of 12% over the revised estimate of 2022-23.

Grants from the centre  in 2023-24 is estimated at Rs 2,593 crore, a decrease of 16% over the revised estimates for 2022-23.

State’s own tax revenue:   Sikkim’s   total own tax revenue is estimated to be Rs 1,727 crore in 2023-24, an increase of 20% over the revised estimate of 2022-23.  Own tax revenue as a percentage of GSDP is estimated at 3.6% in 2023-24 which is the same as the revised estimates of 2022-23.

Table  5 : Break-up of the state government’s receipts (in Rs crore)

Note: BE is Budget Estimates; RE is Revised Estimates. Sources: Annual Financial Statement, Sikkim Budget 2023-24; PRS.

In 2023-24, State GST is estimated to be the largest source of own tax revenue (56% share).  State GST revenue is estimated to increase by 22% over the revised estimates of 2022-23.   In 2022-23, the receipt on this account is expected to be 15% higher than budgeted.

Revenue from sales tax/VAT in 2023-24 is expected to see an increase of 20% as compared to the revised estimates for 2022-23.  Revenue from state excise is also projected to increase by 6% as compared to the revised estimates for 2022-23.

Table  6 :  Major sources of state’s own-tax revenue (in Rs crore)

Sources: Annual Financial Statement and Receipt Budget statements, Sikkim Budget 2023-24; PRS.

Deficits, Debt, and FRBM Targets for 2023-24

The Sikkim Fiscal Responsibility and Budget Management Act, 2010 provides annual targets to progressively reduce the outstanding liabilities, revenue deficit and fiscal deficit of the state government.

Revenue balance :  It is the difference of revenue expenditure and revenue receipts.   A revenue surplus implies that the government does not need to borrow to finance those expenses which do not increase its assets or reduces its liabilities.  The budget estimates a revenue surplus of Rs 42 crore (or 0.1% of the GSDP) in 2023-24, where revenue receipts include a post-devolution revenue deficit grant of Rs 149 crore.  In 2022-23, the revenue surplus is expected to be Rs 856 crore (2.1% of GSDP) as per revised estimates, after accounting for revenue deficit grant of Rs 440 crore.   As per the 15 th Finance Commission recommendations, Sikkim will not receive any revenue deficit grants in 2024-25 and 2025-26.          

Fiscal deficit :  It is the excess of total expenditure over total receipts.  This gap is filled by borrowings by the government and leads to an increase in total liabilities.  In 2023-24, the fiscal deficit is estimated to be 4.5% of GSDP.  For 2023-24, the central government has permitted fiscal deficit of up to 3.5% of GSDP to states, of which 0.5% of GSDP will be available only upon carrying out certain power sector reforms.  As per the revised estimates, in 2022-23, the fiscal deficit of the state is expected to be 4.7% of GSDP, which is higher than the budget estimate of 4% of GSDP.  

Outstanding liabilities :  Outstanding liabilities is the accumulation of total borrowings at the end of a financial year, it also includes any liabilities on the public account.   At the end of 2023-24, the outstanding liabilities is estimated to be 31.5% of GSDP, marginally lower than the revised estimate for 2022-23 (31.6% of GSDP).  Outstanding liabilities have risen from 22.8% of GSDP in 2019-20 to a projected 31.5% in 2023-24.  The outstanding liabilities include financial assistance to states as loans worth Rs 1,501 crore.  

Outstanding Government Guarantees:  Outstanding liabilities of states do not include a few other liabilities that are contingent in nature, which states may have to honour in certain cases. State governments guarantee the borrowings of State Public Sector Enterprises (SPSEs) from financial institutions.  Outstanding guarantees of Sikkim are expected to decrease, from 11.5% of GSDP in 2019-20 to 9.4% of GSDP in 2023-24.

Annexure 1:  Comparison of states’ expenditure on key sectors

The graphs below compare Sikkim’s expenditure in 2023-24 on six key sectors as a proportion of its total expenditure on all sectors.  The average for a sector indicates the average expenditure in that sector by 31 states (including Sikkim) as per their budget estimates of 2022-23. [2]

Education:  Sikkim has allocated 16.4% of its expenditure on education in 2023-24.  This is higher than the average allocation for education by states in 2022-23 (14.8%).

Health:   Sikkim has allocated 6.1% of its total expenditure towards health, which is marginally less than the average allocation for health by states (6.3%).

Agriculture:   Sikkim has allocated 6.7% of its expenditure on agriculture.  This is higher than the average allocation for agriculture by states (5.8%).

Energy:   Sikkim has allocated 4.1% of its expenditure towards energy.  This is lower than the average allocation towards energy by states (4.8%).

Rural Development:   Sikkim has allocated 3% of its total expenditure towards rural development, which is lower than the average expenditure on rural development by states (5.7%).

Roads and bridges:   Sikkim has allocated 6.6% of its total expenditure towards roads and bridges, which is higher than the average allocation by states (4.5%).

Note: 2021-22, 2022-23 (BE), 2022-23 (RE), and 2023-24 (BE) figures are for Sikkim. Sources: Annual Financial Statement, Sikkim Budget 2023-24; various state budgets; PRS.  

[2]  The 31 states include the Union Territories of Delhi, Jammu and Kashmir, and Puducherry .

Annexure 2:  Comparison of 2021-22 Budget Estimates and Actuals

The following tables compare the actuals of 2021-22 with budget estimates for that year.

Table  7 : Overview of Receipts and Expenditure (in Rs crore)

Note: BE: Budget Estimates. Sources: Sikkim Budget Documents of various years; PRS.

Table  8 : Key Components of State's Own Tax Revenue (in Rs crore)

Sources: Sikkim Budget Documents of various years; PRS.

Table  9 : Allocation towards Key Sectors (in Rs crore)

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India State Finances: Revenue Receipts: Sikkim

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Sikkim: Revenue Receipts: Tax: State: Commodities and Services: Vehicles

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Sikkim: Revenue Receipts: Tax: State: Commodities and Services: exclise

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Sikkim: Revenue Receipts: Tax: State: Income: Agricultural

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Sikkim: Revenue Receipts: Tax: State: Income: Professions, Trades, Callings and Employment

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Sikkim: Revenue Receipts: Tax: State: Property and Capital Transactions

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Sikkim: Revenue Receipts: Tax: State: Property and Capital Transactions: Land

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Sikkim: Revenue Receipts: Tax: State: Property and Capital Transactions: Stamp and Registration Fees

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Devastating Landslides in Sikkim Leave Six Dead and Tourists Stranded

Massive landslides triggered by incessant rainfall in mangan district, sikkim, have killed six people and stranded over 1,500 tourists. the destruction, which includes collapsed bridges and blocked roads, has led to significant challenges in rescue and relief operations..

Massive landslides triggered by continuous rainfall wreaked havoc in Mangan district, northern Sikkim, claiming six lives and leaving over 1,500 tourists stranded, officials confirmed on Thursday.

The newly-constructed bailey bridge at Sangkalang collapsed, severing vital links between Mangan, Dzongu, and Chungthang, exacerbating the region's isolation. Landslides blocked roads and damaged houses, while electricity poles were swept away.

Tourist-frequented towns in the district, including Dzongu and Chungthang, are now cut off. A relief camp has been set up, and local authorities are working swiftly to restore connectivity and provide aid to the affected.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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• Sikkim landslides
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• Mangan district
• Dzongu landslides
• Chungthang connectivity
• North Sikkim rain
• Sikkim rescue operations
• Sangkalang bridge collapse
• Sikkim roadblocks
• Prem Singh Tamang

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