All spending within the budget appropriation: MOF
The total appropriation budget of Nu.54, 828.228 million for the Financial Year 2016-2017 has been passed by the Parliament.
The government passed the current expenditure of Nu.25, 387.034 million, capital expenditure of Nu.26, 497.330 million, lending Nu.120.766 million and repayment Nu.2, 823.098 million with the total of Nu.54, 828.228 million. The fiscal deficit and resource gap for FY 2016-2017 are Nu. 8,375.722 mil- lion and Nu.7, 631.475 respectively.
The budget has been formulated based on implementation trend of the past three years and the government’s priorities to complete 11th Five Year Plan programs within the remaining period of the plan.
According to the notification from the Ministry of Finance, the agencies are strictly required while implementing the budget. All budget agencies are required to keep their spending within the expenditure limits set out in the budget appropriation. The heads of the agencies should underscore the underutilization cases through continuous monitoring and ensure implementations that match the budget allocations.
The notification also states that the agencies are required to implement the activities accordingly towards fulfilling the objectives of the Annual Performance Agreement (APA).
The government also introduced Dzongkhag Development Grant and Gewog Development Grant of Nu.7 million for each Dzongkhag and Nu.2 million for each Gewog to deepen the process of decentralization to implement the activities.
The Government has been allocated the budget provision of Nu.100 million in Dzongkhags for capacity development of civil servants. Most of the activities budgeted carried out as deposit works by Dzongkhags/ Thromdes are now allocated to the respective Dzongkhags/Thromdes.
The notification further states that for implementation of multi-year projects/works, if the total of the project is going to be more than the budget provision, agencies should seek approval for the total cost before the start of the work.
It also stated that the increase in current expenditure is higher compared to increase in domestic revenue over the years and it would be difficult to contain recurrent expenses within the internal resources of the country in future if trend continues.
While implementing the budgets, spending agencies are required to strictly adhere to the provisions of PFA, Finance Rules and Regulations 2001 (FRR-2001)