Gangtok: Dr. Arvind Panagariya, Chairman of the 16th Finance Commission, announced today in a press conference that Sikkim is set to benefit significantly from the Commission’s revised resource allocation framework. The new formula aims to address the unique developmental challenges faced by smaller, border, and mountainous states like Sikkim by providing fair and focused financial assistance.
Dr. Panagariya emphasized that the revised criteria for fund distribution recognize the specific needs of states with challenging geographies. While population remains a major determinant in the allocation process, the framework ensures that smaller states are not penalized for their lower population sizes. “Smaller states face unique hurdles, and the new formula acknowledges these challenges to ensure equitable growth,” he said.
The revamped framework places a strong emphasis on fiscal discipline and governance changes. States that demonstrate financial discipline and strong governance will receive a larger proportion of central resources. Dr. Panagariya described Sikkim's consistent efforts to maintain fiscal responsibility and openness as exceptional. "Sikkim has shown remarkable progress in public financial management, digital governance, and anti-corruption initiatives," he said, highlighting the state's successful deployment of e-governance measures that have increased efficiency and decreased administrative expenses.
The Commission's framework prioritizes infrastructure development for governments that face geographical constraints. This is especially important in Sikkim, where hilly terrain and inaccessible regions present substantial hurdles. Dr. Panagariya emphasized the importance of road connectivity for economic development and tourism, noting that "the Commission's formula ensures that border states like Sikkim receive adequate resources to enhance their infrastructure." He promised that more money will be committed to important projects like roads, bridges, and transportation networks, which are critical for enhancing connectivity and boosting economic growth. Dr. Panagariya also emphasized the importance of considering social development indicators such as education, healthcare, and poverty alleviation when allocating resources. Sikkim, which has achieved great progress in several areas, is likely to benefit. The Finance Commission recognized the state's excellent efforts to improve school access, improve healthcare services, and reduce poverty.
Given Sikkim's critical location near international borders, the updated framework emphasizes the significance of improving security infrastructure. Dr. Panagariya stated that more resources would be given to improve border security and assist local residents in these areas. "Sikkim's proximity to international borders creates unique security challenges. "The Finance Commission's approach ensures that these issues are effectively addressed," he stated.
In closing, Dr. Panagariya emphasized the Finance Commission's dedication to equitable prosperity for all states. "Every state, regardless of size or population, will have access to the resources required to promote sustainable development thanks to the updated framework. This entails providing Sikkim with focused assistance to overcome its unique obstacles and realize its full potential," he said. Sikkim is expected to get more funding as a result of the proposed adjustments in order to overcome its developmental obstacles, fortify its infrastructure, and encourage inclusive growth.
