Sikkim Chief Minister Prem Singh Tamang has expressed gratitude to Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman for the release of ₹671.35 crore as part of the Union government’s tax devolution for January 2025. “This timely support will accelerate Sikkim’s economic development, enhance social welfare initiatives, and advance critical infrastructure projects,” Tamang said, acknowledging the central government’s commitment to aiding smaller states.
The allocation is part of the Union government’s monthly tax devolution, which distributes the net proceeds of union taxes to states. For January, the total devolution across India amounts to a substantial financial boost, with Uttar Pradesh receiving the largest share of ₹31,039.84 crore, followed by Bihar with ₹17,403.36 crore and West Bengal with ₹13,017.06 crore.
Sikkim plans to utilize its allocation to strengthen social welfare programs, improve public services, and expedite infrastructure development to bolster the state’s economic resilience. Among northeastern states, Assam leads with ₹5,412.38 crore, followed by Arunachal Pradesh with ₹3,040.14 crore. While Sikkim’s share is smaller, it is seen as vital for the state’s growth trajectory.