PDP government declares 2015 a productive and successful year
The economic affairs minister Norbu Wangchuk during the 21st `Meet the Press’ last Friday said that the year, 2015 has been a productive and blossomed with significant improvement of the economy.
Highlighting on the success for the year, the minister said that the government after assuming the office in 2013 with the brink economy has now been stabilized. The Gross domestic product (GDP) has experienced a growth from 0.28 percent in 2013 to 5.7percent 2015. The government has inherited INR 5bn which has now improved to INR17bn.
The inflation rate in 2013 was 10-11 percent which has reduced to 3.4 percent. However, the government does not take the credit on infla- tion as it happened due to crumbling of oil prices globally; the government only takes credit for successfully stabilizing the troubled economy.
In terms of unemployment, Lyonpo said that there has been a slight fall but not as expected. “The right policy and the hard work of the government had been proved,” he said.
The government’s first effort on reviving the economy was by putting Economic Stimulus Plan in 2013where Nu 2bn was injected into the banks to get access to the credit for the private sectors. Norbu Wangchuk said that prior to the term of second democratically elected government; the private sectors have literally frozen without work with the lack of credit facilities. The banks have stopped giving loans. 3000 construction companies had no works at hand,” he said. The sector has plummet 45 percent. He also said that, those contractors who had done the job had not received the payment from the government. But now the sector has boomed and picked up. “The contractors have up to three projects at hand,” he said.
The Business Opportunity and information Center ( BOIC) was established to stimulate the rural economy has started to bear the fruits. The minister also said that 2000 rural economic projects are beginning to unfold and yield the results with equal number of employment. 200 more projects are coming up vibrantly. “The communities around which they circle the entrepreneurs have begun to show the results,” he said.
The minister also said that Nu 92bn worth of capital works has now begun to roll with more construction works. Also the Punatshangchhu Hydroelectric Project Authority (PHPA) which was at the standstill during the time he inherited the economic affairs ministry due to slippage of right bank has been smoothened and rationalized. The projects is also said to have serious issues with the fund relief from the Indian government which resulted in the slow pace development of the work.
But the minister said that the work has been resumed with the fund release from the Indian government. The minister said that the dam construction of Punatsangchhu-I has been strengthened and corrected. “It has been a huge success for the hydropower sector, the driver for economy,” he said. The government has also succeeded to continue and bring on track the three mega projects, Punatsangchhu-I and II and Mangdechhu Hydropower project. The government also succeeded in starting up of Kholongchhu project and Tangsibji project and has completed Dagachhu project. The government has also succeeded in and deliberations of Chamkharchhu project are in its final stages.
The minister also said that the government’s plan to improve the economy in 2015 has been a success. “Through a bleak situation from 2011, this year has been a bright outcome as we close 2015 and we just need to work harder next year,” said the Lyonpo.