official figures, tourism now accounts for almost eigt per cent of the state gross domestic product. Sikkim’s industrial base comprises fruit processing, brewing and distilling and pharma companies. Besides it has approved of around 25 hydropower projects to generate additional revenue.
Still dependent on central transfers, Sikkim has relatively high level of capital expenditure which has sometimes resulted in very large fiscal deficits.
According to budget estimates for 2012-13, the state’s fiscal deficit stood at 3.5 per cent.