Sikkim Tax Revenue Jumps 3.2 Times Over Last Decade

Gangtok: Sikkim posted a 3.2-fold increase in tax revenue between 2015-16 and 2024-25. This ranks the state among the five fastest growers in India. Only Arunachal Pradesh, Nagaland, Mizoram, and Meghalaya grew faster. The Comptroller and Auditor General reported these gains in its State Finances 2024-25 analysis.

Tax performance stayed strong after the Goods and Services Tax rollout. Sikkim recorded a 139 percent jump in State GST collections between 2018-19 and 2024-25. This was the second-highest growth nationwide, trailing only Arunachal Pradesh. The state hit an average annual growth of 13 percent for own tax revenue, beating the 11 percent national average. The CAG report noted, "Sikkim's own tax revenue increased 3.20 times during the period, placing it among the five states with the fastest growth."

The state ended 2024-25 with a revenue surplus equal to 0.90 percent of its Gross State Domestic Product. Officials met their fiscal targets. Sikkim used borrowed money wisely. It recorded 3,463 crore rupees in capital spending during 2024-25, which topped its net public debt receipts of 3,358 crore rupees. It is one of 14 states achieving this fiscal balance.

Construction projects got priority. Over 80 percent of capital spending went toward roads, buildings, and physical infrastructure. Only nine states reached this threshold. Meanwhile, central aid surged. Loans from the Central Government climbed 3,118 percent over the decade. This represents the second-highest increase in the country, behind only Meghalaya.