GDP growth of 5.6 per­cent of last year is not very im­pres­sive: Says the Op­po­si­tion

Bhutan Times - - Home - Sonam Pen­jor

The GDP growth rate of 5.6 per­cent of last year is not very im­pres­sive as said by the Mem­ber of Par­lia­ment from South-Thim­phu MP Yeshey Zimba dur­ing meet the press ses­sion re­cently. He added that gov­ern­ment al­ways com­pare with 2013 which was a bad year.

He said that GDP has grown due to the gov­ern­ment ex­pen­di­ture as we are at the peak of ex­pen­di­ture and the gov­ern­ment ex­pen­di­ture was fu­elled by more aid and grants.

He added that how did this hap­pened and did it hap­pened by es­tab­lish­ing new in­dus­tries, in­crease in ex­ports and em­ploy­ment of more peo­ple? Which has been not hap­pened?

For a sim­ple rea­son, a lot of ac­tiv­i­ties which con­trib­utes to GDP did not take place as it should have, for in­stance con­struc­tion which was dom­i­nated by the power projects and dur­ing that year there was a slow­down in the dis­burse­ment of funds in the power projects, he added.

He fur­ther said that the con­tri­bu­tion to the GDP from the con­struc­tion in­dus­tries is ac­tu­ally the high­est; it is about 70 per­cent to 80 per­cent of the GDP but that has slowed down be­cause of the some rea­sons, the fund dis­burse­ment was not ad­e­quate and the money was spent by the con­trac­tors.

Mem­ber of Par­lia­ment from North-Thim­phu MP Kinga Tsh­er­ing said that Nu.30.2 bn is the ex­ter­nal ac­count deficit and 25 per­cent is the trade deficit of the Gross Do­mes­tic Prod­uct (GDP).

This is the big­gest con­cern; Kinga Tsh­er­ing said from the SAARC re­gion we have the high­est trade deficit if we look at the eco­nomic size and the GDP growth rate.

He said that the near­est trade deficit with our coun­try is Mal­dives with 6.3 per­cent but there is a big dif­fer­ence. He said that gov­ern­ment has to look into it and should take nec­es­sary ac­tion, if not where the na­tion will be.

He said that if the trade deficit is sus­tained with the grant money then for how long the ru­pee prob­lems will be solved and also the trade deficit.

Sim­i­larly when it comes to the debt, dur­ing year 2013 it was Nu.90bn, know it has reach to about Nu.130bn it should be one of the con­cerns.

From the SAARC coun­tries he added that our debt is 99 per­cent of GDP as of 2015, the near­est is Sri Lanka which is 60 per­cent, Mal­dives with 33 per­cent, Bangladesh with 18 per­cent and Nepal with 16 per­cent.

MP Kinga Tsh­er­ing said that it is the pe­riod of Mid-Term Re­view and it is very im­por­tant to look into the sit­u­a­tion. Trade deficit is Nu.30.2bn of which the oil con­trib­utes to Nu.7bn, chop­pers oil con­trib­utes to Nu. 2bn and ve­hi­cle con­trib­utes to Nu.7bn.

He said that if trade deficit of ve­hi­cle is Nu.7bn then by next year the to­tal ex­pen­di­ture on oil will reach to Nu.10bn.

GDP growth rate was 5.6 per­cent, that was from min­ing it con­trib­utes to 0.4 per­cent, from con­struc­tion sec­tors it con­trib­utes to 0.9 per­cent, whole sale and re­tail with 1 per­cent, trans­porta­tion and com­mu­ni­ca­tion with 0.9 per­cent, com­mu­nity and per­sonal ser­vices with 0.7 per­cent and ma­chin­ery and equip­ment to Nu.8bn to Nu.2bn which contributed to the GDP growth, he added.

While, the gov­ern­ment pledged to achieve an an­nual av­er­age growth rate of ten per­cent in five years.

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