Record bud­get out­lay of Nu. 45.50Bn for the next fisi­cal year

Bhutan Times - - Home - Sonam Pen­jor

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.

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