Sikkim Finance Commission

The Sikkim Finance Commission is a state based delegation. The purpose of such delegation is the review of the financial implementations pertaining to the State of Sikkim. The State Finance Commission is established under the Article 243 (I) of the Indian Constitution.

Sikkim Finance Commission-Information:

The Sikkim Finance Commission is delegation for the State of Sikkim. The Finance Commission is set up, at the end of every fifth year under the Article 243 (I) of the Indian Constitution.

The article instructs the Governor of the state, on expiration of every fifth year or any time before it (as he may feel necessary) to set up a Finance Commission. The Article also states for periodic assessment of the performance of the commission according to the as per the 73rd Amendment of the Constitution Act, 1992.

Ideals of the Sikkim Finance Commission:

• The Sikkim Finance Commission follows these ideals for better performance
• Determining the duties, tolls, taxes, and fees, which are to be imposed by the state authorities
• The allocation of the total yield pertaining to taxes, tolls, duties, and fees imposed by the state to the different panchayats
• The allocation of the total proceeds from the taxes, tolls, duties, and fees imposed by the state, which is to be divided between the State and the panchayats
• Determining the financial roles of the panchayats
• The financial assistance from the State Consolidated Fund, pertaining to the Panchayats

Yardsticks for Sikkim Finance Commission for rural development

• All recommendations by the Governor should be made together with an explanatory memorandum which is to be presented before the Legislature of the State for final ratification


• To attain to matters mentioned by the Governor to the Sikkim Finance Commission regarding the proper finance allocation to the Panchayats


• The Finance Commission of Sikkim constituted under Article 243 Sec I, would attain to similar matters referred by the municipalities as per the Article 243Sec Y of the Constitution of India


• Provide advancement of the financial performance of the Panchayats, which would help in the development of the rural sector

Issues pertaining to Sikkim:

• The Sikkim Finance Commission deals with the issues pertaining to the development of the state and the rural sector of Sikkim


• The funds allocated to the State during the last two State Plans was not supported by any kind of real assessment of the required development of the State


• The Eleventh Finance Commission did not provide capital assistances for the Special Category States


• The Central Government's decision to alter the funding pattern during 1988-89 led to the financial crisis in the Special Category States

For further information on State Finance Commissions, please refer to the following sites