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