HIGH-LEVEL MEETING HELD BETWEEN 14TH FINANCE COMMISSION AND SIKKIM GOVT

State seeks Rs 20,511 cr in grants for next Five Year Plan
GANGTOK, 21 Jan [IPR]: A high level meeting of the 14th Finance Commission with the Government of Sikkim was held today at Raj Bhawan. The 14th Finance Commission comprises of former Governor of Reserve Bank of India, Dr. YV Reddy as Chairman, AN Jha as Member Secretary, and Professor Abhijit Sen [Member Planning Commission], Sushmanath [former Union Finance Secretary], Dr. Govinda Rao [Director NIPFP], and Dr. Sudipto Munde [former acting Chairman Statistical Commission] as members of the Commission.
The meeting had the presence of Chief Minister Pawan Chamling and his Council of Ministers, Chief Secretary, R. Ongmu, Principal Secretary Finance Department, MG Kiran and senior officers from Finance Department, and all Departmental heads.
The Chief Minister in his speech, welcomed the 14th Finance Commission and highlighted various initiatives and achievements of the state.
He sought the share of Central taxes to the state to be raised from 32% to 50% as a special dispensation for Sikkim. Need to consider measures to transfer all centrally sponsored schemes under state subjects with requisite funds and flexibility in the implementation of the schemes.
On behalf of the State Government, the Chief Secretary made a detailed presentation on the State Finances and its projections for the five-year period starting 01 April, 2015. Before the start of the meeting, a detailed memorandum on this regard was submitted to the Commission by the Government of Sikkim.
In the end, the Chief Secretary made the submission for the consideration of various grants by the 14th Finance Commission which amounts to a total of Rs 20,511.98 crore.
Funds are being sought as Local Body grants [336.95 Cr]; Forest Maintenance Grant [74 Cr]; Glacier Dynamic Studies [10 Cr]; State Specific Needs [2,136.03 Cr]; and Pre Devolution Non Plan Revenue Deficit Grant [17,955 Cr] working to a grand total of Rs. 20,511.98 Cr.
In addition, the Government also proposed for Green Bonus /Incentive in view of the pioneering efforts in preserving Himalayan Ecology and to maintain 82% of forest coverage; Peace Bonus /Incentive since the State Government has been able to maintain absolute peace and tranquillity with no insurgency despite having three International Borders.
The CS argued that Sikkim not be treated ‘at par’ with other States in the Indian Union. Normative approach should not underestimate the special problem of the State, she stressed, adding that assessment of the State Finances not omit “genuine expenditures”. She sought that “stringent conditions” not be imposed to utilize grants to enable utilising funds earmarked for developmental activities and that the Commission relook the strict fiscal deficit target while suggesting any fiscal restructuring framework and also consider 100% Liability on account of pay revision of govt employees in line with the 7th Central Pay Commission.
The Chairman of the 14th Finance Commission Dr. YV 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 representations.
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.
Later, the 14th Finance Commission interacted with the representatives of local bodies, political parties and trade and industry associations. The meeting concluded with vote of thanks proposed by Principal Secretary Finance department, MG Kiran.
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.
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.