Gangtok | Sikkim Chief Minister Prem Singh Tamang on Thursday dismissed speculation over the state’s financial health, asserting that Sikkim remains fiscally stable and fully capable of sustaining its development agenda while unveiling a series of initiatives aimed at supporting farmers, strengthening healthcare, expanding medical education and improving infrastructure.

Addressing reporters, Tamang rejected reports suggesting that the state government was facing a financial crisis, describing them as “baseless rumours” intended to mislead the public.

“If the government were bankrupt, we would not have been able to present an ?18,455-crore budget or continue paying salaries on time,” the Chief Minister said. He noted that more than ?11,000 crore had been earmarked for revenue expenditure, benefiting citizens through salaries, welfare schemes and public services.

Borrowings within RBI limits

Defending the state’s fiscal management, Tamang said all government borrowings had been undertaken strictly within the limits prescribed by the Reserve Bank of India (RBI) and in accordance with Sikkim’s Gross State Domestic Product (GSDP).

He said the government was servicing both principal and interest payments on schedule, with only about 8.45 per cent of the state’s revenue being utilised for debt repayment. “Our borrowings have been used to create productive public assets and not to meet routine expenditure,” he said.

Relief for farmers

Announcing measures to support the agriculture sector, the Chief Minister said farmers availing loans under the Kisan Credit Card (KCC) scheme would effectively pay only one per cent interest, provided they repay their loans on time. The remaining interest burden, he said, would be shared by the Centre and the state government.

He also announced that eligible beneficiaries engaged in agriculture, dairy and piggery would continue to receive financial assistance of up to ?5 lakh under the Chief Minister Self Employment Assistance Scheme, without the requirement of collateral or bank guarantees.

Healthcare expansion

In a major healthcare initiative, Tamang announced that STNM Hospital would soon begin offering kidney transplant services, enabling patients to access advanced treatment within the state instead of travelling elsewhere.

The Chief Minister also announced free cervical cancer screening for women aged between 30 and 65 years, complementing the nationwide rollout of free Human Papillomavirus (HPV) vaccination aimed at preventing cervical cancer.

Infrastructure projects

Highlighting ongoing development works, Tamang said the government had planned the carpeting of 570 kilometres of roads, with priority being given to routes connecting tourism destinations, educational institutions and major markets.

He added that work on the Integrated Culture and Sports Village and a new Convention Centre was progressing as part of the state’s infrastructure expansion.

Free MBBS seats for Sikkim students

On medical education, the Chief Minister announced that the newly approved Srimati Sikkim Lepcha Medical College would begin operations with 100 MBBS seats.

Of these, 50 merit-based seats reserved for eligible Sikkim students will be tuition-free, while students from economically weaker sections will receive additional assistance under the Chief Minister Education Assistance Scheme.

Tamang also said Sikkim had secured additional MBBS seats in Manipur, providing more opportunities for students from the state to pursue medical education.

‘Financial discipline strengthened’

Concluding his remarks, the Chief Minister said improved Goods and Services Tax (GST) collections, tighter financial monitoring and enhanced revenue management had significantly strengthened Sikkim’s fiscal position.

He maintained that the government’s prudent financial management would enable the state to continue implementing welfare programmes and development projects while maintaining fiscal discipline.