CAP leader Ganesh Rai criticises Sikkim’s eighth State Budget as debt-led and jobless

Citizen Action Party (CAP) Sikkim president Ganesh Kumar Rai on Friday criticised the ruling Sikkim Krantikari Morcha (SKM) government over its eighth State Budget. Rai alleged that the budget depends heavily on borrowings, does not address unemployment and income generation, and adds an unsustainable financial burden on the state.

Speaking at a press conference at CAP Sikkim headquarters in Ranipool, Rai said the budget was presented four months after the scheduled time. He alleged the government was pushed into presenting a full budget only after sustained pressure from the opposition.

Budget figures and claims on spending priorities

Rai said the budget projects Sikkim’s Gross State Domestic Product (GSDP) at Rs. 62,973 crore, while the total budget outlay is Rs. 19,215.53 crore. He claimed total expenditure is estimated at Rs. 18,452.53 crore, which he said is nearly 30 percent of the projected economy.

He also questioned what he described as omissions in the Chief Minister’s 65-page budget speech. Rai alleged the speech did not mention unemployment, job creation, income generation, poverty reduction, the middle class, drug abuse, or the Pay Commission for government employees. He argued that without addressing unemployment, unemployed youth would not get relief.

Medium-Term Fiscal Plan and borrowings questioned

Rai said the budget should be assessed not only through the Chief Minister’s speech but also through the Medium-Term Fiscal Plan presented in the Assembly. He claimed the fiscal plan raises serious concerns flagged by NITI Aayog, including Sikkim’s low fertility rate of 1.1 and warnings about rising debt in relation to the GSDP.

He further questioned the state’s revenue mix. Rai said only a small share comes from state tax and non-tax sources, while the rest comes from the state’s share of central taxes, grants-in-aid, and borrowings. He pointed to planned gross borrowings of Rs. 2,765 crore and additional borrowing under the Government of India’s 50-Year Interest-Free Loan Scheme, saying the total borrowings for the year would reach Rs. 6,077 crore.

Rai criticised the budget’s projected GSDP growth rate as “jobless growth” and alleged it did not create employment opportunities or strengthen businesses. He also alleged the budget favours administrative spending such as the Chief Minister’s travel and official residences.

Beyond the budget, Rai criticised the passage of the Private State Board of Open Schooling and Vocational Education Bill in the Assembly. He alleged that the legislation would allow a private open schooling board even though Sikkim already has a board under a 2020 act. Rai said CAP will continue opposing policies that, according to him, increase debt and fail to improve the lives of ordinary citizens.