All spend­ing within the bud­get ap­pro­pri­a­tion: MOF

Bhutan Times - - Home - Sonam Pen­jor

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)

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