Record budget outlay of Nu. 45.50Bn for the next fisical year
To fulfill the pledges made by the government for the 11th Year Plan , the financial year 20152016 being the midyear of the plan peroid , the government has outlay budget of Nu. 45.50 billion and it is a maximum share of 24 percent of the plan outlay. The national budget for the financial year 20152016 was presented to the National Assembly by the Finance Minister, Lyonpo Namgay Dorji last Tuesday.
The budget for the financail year ( FY) 20152016 will be injected to implement and achieve broad fiscal policies and target. For instance; maintain fiscal deficit within 3.2 percent of GDP, generate surplus domestic revenue to increasingly cover part of the capital expenditure, maintain non–hydro debt below 35 percent of GDP, and to provide subsidies to agencies with social mandates for capital works and to cover revenue deficit.
According to the National Budget Report for the financial year 20152016 , the major initiatives of the government such as establishment of Central Schools for enhancing quality of education and facilities, double laning of northern-east west highway (NEWH) and livestock projects to attain food self-sufficiency will be continued.
In addition to that, the report also states that the much anticipated helicopter services will be introduced especially in light of the natural disasters affecting our region in recent times and also to promote tourism. Besides that, the government has already started distributing power tillers at the local government level and launched banking services at the geog level. For enhancing mobility at the geog level, provision has been made for procurement of utility vehicles.
The budget report also stated that the total resources for the FY 20152016 has estimated at Nu.41, 017.888million out of which the domestic revenue comprises of 64 percent and external grants of 36 percent.
Considering the eco- nomic growth and better tax compliance, the report states that the domestic revenue for the FY 2015-2016 was estimated at Nu. 26,145.124million, which is an increase of 5 percent over the previous year. Of the total revenue, tax revenue was estimated at Nu. 19,197.949million, while non-tax revenue was estimated at Nu.6, 947.175million.
Of the total estimated domestic revenue, Corporate Income Tax (CIT) was expected to contribute about 25 percent followed by 15 percent from dividend and 11 percent from sales tax. Domestic revenue was expected to increase by 5 percent, mainly on account of estimated CIT and dividend from Dagachhu Hydropower Plant of Nu. 470.856 million estimated additional CIT of Nu.148.559 million, from Bhutan Power Corporation and expected surplus transfer of Nu. 200million from Royal Monetary Authority.
However the report states that the revenue growth may be affected if Dungsam Cement Corporation Ltd. (DCCL) continues to incur losses as there will be no payment of CIT and dividend.
The report shows the allocation of the budget for the FY 2015-2016, and for social service which includes health and education sectors. The budget allocated for the health services was Nu.3, 934.338million including of both current and capital expenditures. While to the education sectors, the budget was allocated to Nu. 9312.354million, for economic and public services which includes RNR, trade and industry, roads, urban development, housing and public amenities sector, communication and transport and energy, the budget was allocated to Nu. 18,160.907million; and for the cultural services was allocated to Nu. 2152.509 million; law and order services the budget was Nu. 2,210.418million; general public services was Nu. 9,468.589million and for national debt services which includes repayment and lending was Nu. 5,474.592million.