Niren Bhandari
The Union Budget for 2026–27 provides a focused and measurable enhancement for Sikkim, showcasing the government’s ongoing commitment to the North-East as a vital area for growth. Through a combination of direct financial support, investments in infrastructure, initiatives for cultural tourism, and human development programs, the Budget fortifies Sikkim’s development path while maintaining its ecological and cultural distinctiveness.
The Buddhist Circuit Development Plan, is a crucial cultural and tourism-oriented intervention under which 38 projects totaling ₹225 crore have been sanctioned across four states and one Union Territory, including Sikkim. This project concentrates on the preservation of monasteries and temples, upgrading facilities for pilgrims, and enhancing connectivity—factors that are especially relevant to Sikkim’s Buddhist heritage and tourism sector. Additionally, Sikkim has obtained more than ₹193 crore through the Swadesh Darshan Scheme and ₹33 crore from the PRASAD scheme to improve the infrastructure for pilgrimage and spiritual tourism.
From a fiscal perspective, tax devolution for Sikkim in 2026–27 is set at ₹5,112 crore, while grants-in-aid total ₹3,629 crore, greatly boosting the state’s fiscal capacity. Apart from Finance Commission transfers, Sikkim has received ₹4,296 crore since 2020–21 through the Special Assistance to States for Capital Investment, which is offered as interest-free loans over 50 years, allowing for the creation of long-term infrastructure without incurring debt stress.
The investment in connectivity and infrastructure is receiving significant attention, with a record high capital expenditure planned. The railway budget for the North-East for the financial year 2025–26 is set at ₹10,440 crore, which is nearly five times greater than the average annual spending before 2014. In Sikkim, the Rangpo railway station is undergoing redevelopment as part of the Amrit Bharat Station Scheme, while the expansion of road infrastructure has seen the construction of over 730 km of national highways by mid-2025.
Issues of sustainability and urban mobility are being addressed with the introduction of 4,000 electric buses across the country and the establishment of City Economic Regions, each supported by a ₹5,000 crore allocation over five years, which will aid emerging regional hubs in the North-East. Additionally, there are specific initiatives aimed at hill agriculture, which include assistance for orchard renewal, promotion of high-value crops, and diversification, all in line with Sikkim’s model of organic farming.
Investments in human capital amplify the Budget’s influence. Initiatives for girls’ hostels in STEM institutions, an increase in allied health education resulting in one lakh new professionals over five years, and improved district-level trauma and geriatric care bolster social infrastructure in mountainous and remote areas.
In summary, the Union Budget 2026–27 transcends mere symbolic inclusion, providing concrete financial commitments that establish Sikkim as both a cultural cornerstone and a sustainable growth ally in India’s North-East development strategy.
