The 16th Finance Commission of India, chaired by Dr. Arvind Panagariya, announced that its final report on Sikkim’s financial health and development will be released in October 2025. The announcement was made during a press conference in Gangtok on January 20, 2025. Dr. Panagariya highlighted the Commission’s ongoing evaluation of state finances, emphasizing the need for equitable fund allocation based on standardized criteria. Key factors under review include forest cover, GDP contributions, and per capita income.
“While we acknowledge Sikkim’s leadership in sustainable development and energy security, we must maintain fairness in our recommendations across all states,” he stated. The Chairman also addressed Sikkim’s infrastructure challenges, noting that improving connectivity remains a priority. However, he clarified that such initiatives may depend on central grants and national budgetary priorities.
Dr. Panagariya reiterated the Commission’s commitment to equity in public services, ensuring no state is left behind. The report’s findings and recommendations are expected to provide valuable insights into Sikkim’s financial landscape and development trajectory.