Sikkim Budget 2025-26: A Roadmap for Growth and Development

The Sikkim Budget 2025-26 was presented during the Budget Session of the Eleventh Assembly, with a total expenditure outlay of ₹16,647 crore and a net budget of ₹16,196 crore after recoveries. Chief Minister Prem Singh Tamang outlined the financial roadmap, emphasizing investments in education, healthcare, infrastructure, rural development, and tourism to drive sustainable growth and employment in the state.

A major announcement during the session was that Prime Minister Narendra Modi will attend Sikkim’s 50th Statehood Day celebrations on May 16 as the Chief Guest. He will inaugurate key projects and lay foundation stones for new initiatives aimed at boosting infrastructure, healthcare, and tourism.

The government introduced the “Zero Poverty, 100% Literacy” vision, focusing on education reforms, social welfare programs, and economic inclusion to ensure quality education and financial stability for all.

In healthcare, new collaborations with AIIMS and the Army Hospital (Research & Referral), New Delhi, will lead to the establishment of an Assisted Reproductive Technology (ART) Centre. The 500-bedded Namchi District Hospital will also be inaugurated, improving access to healthcare facilities.

Tourism remains a priority, with major investments in projects such as the Nathula Border Tourism Development Project and Bhaleydhunga Skywalk, both expected to boost eco-tourism and attract more visitors to the state.

The budget session also introduced a State Mental Health and Suicide Prevention Strategy in collaboration with the Centre for Mental Health Law & Policy, Pune. The initiative aims to address mental health challenges and provide support systems for affected individuals.

In terms of employment opportunities, efforts are being made to facilitate global job placements for Sikkimese professionals. As a result, 13 nurses from Sikkim have secured jobs in Germany’s healthcare sector.

To further strengthen economic growth, the government has allocated substantial funds for key sectors. The education sector has been granted ₹2,164 crore, making up 13% of the total budget. These funds will be utilized for school infrastructure improvements, scholarships, and teacher training programs. The healthcare sector has been allocated ₹999 crore, focusing on medical facility expansions, including the development of multi-specialty hospitals. Rural development has received ₹1,331 crore to improve road connectivity, housing, and agricultural initiatives. Additionally, ₹2,896 crore has been earmarked for centrally sponsored schemes to leverage central government funding for state projects.

Another legislative update during the session was the notification of the Sikkim Motor Vehicles Taxation (Amendment) Act, 2025. The Act, which received the Governor’s assent on February 26, 2025, introduces revised additional tax rates on vehicle registrations across various categories, impacting both private and commercial vehicles.

Under the new amendments, private and government vehicles will be taxed between 1% and 6% based on their invoice cost. Commercial vehicles, including taxis and goods vehicles below ₹10 lakh, will be taxed at 1%, while those above ₹10 lakh will be taxed at 2%. Buses owned by educational institutions and private organizations will now be taxed at 3%. Motorcycles will be taxed based on engine capacity, with charges ranging from ₹1,000 for 80cc bikes to ₹7,500 for those above 500cc. Cars will be taxed between ₹10,000 for smaller vehicles up to 900cc and ₹25,000 for larger vehicles above 2001cc.

For vehicles transferred from other states into Sikkim, a tax equivalent to 50% of the additional tax rates will be imposed. Similarly, vehicles purchased from dealers outside Sikkim, despite availability in the state, will be subject to 50% higher tax rates. However, commercial electric, hybrid, and battery-operated vehicles will be exempt from additional tax, while non-transport electric and hybrid vehicles will be taxed at 1% of the invoice cost.

During the budget session, Chief Minister Prem Singh Tamang also announced that Prime Minister Narendra Modi will inaugurate and lay foundation stones for multiple projects during the 50th Statehood Day celebrations. Among the projects set for inauguration are the 500-bedded Namchi District Hospital, Swarna Jayanthi Maitreya Manjri, the Atal Bihari Vajpayee Statue, and the Passenger Ropeway at Sangachoeling, which will connect Pelling to Sangachoeling Monastery.

Foundation stones will be laid for several key projects, including the Golden Jubilee Convention Centre in Namli, the Bhaleydhunga Skywalk, the Nathula Border Tourism Development Project, the Singhshore Bridge, the Golden Jubilee Integrated Cultural and Sports Village, and a working women’s hostel in Tadong. These projects are expected to enhance Sikkim’s economic development, tourism potential, and infrastructure.