Sikkim tribal leader calls for white paper on state's rising debt amid claims of fiscal mismanagement

Senior tribal leader and Chief Advisor to the BJP’s Sikkim unit, Tseten Tashi Bhutia, has raised alarm over what he describes as a “fiscal paradox” in the state’s economy. Despite Sikkim recording one of the highest per capita incomes in India, Bhutia pointed to an equally alarming per capita debt burden and accused the state government of poor financial management.

Official data shows Sikkim’s per capita income for 2023–24 at Rs 7.07 lakh, placing it among the wealthiest states on record. But Bhutia noted that this figure masks deeper financial issues — most notably, a growing debt that now stands at Rs 22,380.62 crore, or 42.6% of the state’s Gross State Domestic Product (GSDP).

“This contradiction raises serious questions,” Bhutia said. “Where is the money going? Why is there no sense of economic security despite high income figures?”

The state’s projected GSDP for 2024–25 is Rs 52,555 crore, with an estimated 11% growth. Yet the fiscal deficit — the gap between revenue and expenditure — is pegged at Rs 2,840 crore, or 5.4% of GSDP. Bhutia warned that the government’s increasing dependence on borrowing, without clear long-term benefits, could lock the state into a dangerous cycle of debt.

He criticised what he sees as a shift towards vote-bank politics and short-term populism, with funds being channelled into welfare schemes that he believes lack sustainability. “It is high time we move beyond glossy economic figures. What looks good on paper must reflect in people’s lives,” Bhutia said.

Bhutia also raised concerns about Sikkim’s growing reliance on lottery revenue, calling it an unstable and ethically questionable source of income. He urged a rethink of the state’s fiscal strategy, particularly its dependence on sectors that contribute little in terms of jobs or direct revenue. He highlighted that while the pharmaceutical and hydropower sectors dominate the GSDP, they offer minimal benefits to the local population. Hydropower, he said, contributes just around 12% of its earnings to the state exchequer.

Meanwhile, agriculture continues to decline due to a chronic labour shortage, further weakening the state’s economic foundations.

To address the issue, Bhutia has demanded that the government release a White Paper detailing Sikkim’s fiscal health. He said it should include full transparency on borrowing, lottery revenues, subsidy spending, and sector-wise revenue contributions, along with a plan to cut waste, plug financial leakages, and curb corruption.

“Sikkim’s future should not be mortgaged to debt, corruption, and short-sighted politics,” he said. “Let us secure our children’s tomorrow by making the right choices today.”

Calling on civil society, opposition leaders, and concerned citizens, Bhutia urged a collective demand for transparency and accountability in government finances.