Nu 60.77 bn for fiscal 2017-18
The government has proposed a budget of Nu 60.77bn for the fiscal year (FY) 2017-18, the highest budget allocation in the last four years.
The budget for the year is Nu 6.39bn more than last year’s revised budget.
Of the total budget, Nu 57.9bn is for expenditure, Nu 41.84mn for lending and Nu 2.82bn for repayment.
The focus of FY 2017-18, the final year of the 11th Five Year Plan is to complete priority programs and activities of the plan.
Finance Minister Namgay Dorji presenting the budget at the National
Assembly (NA) on Monday, said that the budget for the FY has been considered with broad principles to maintain fiscal deficit at sustainable level in line with the target of 3% growth of gross domestic product (GDP). It would also ensure there are no borrowings for recurrent expenditure while non-hydro debt would be maintained at 35% of GDP.
The total resources estimated for the FY is Nu 51.4bn of which Nu 34.7bn is domestic revenue and Nu 16.7bn constitutes external grants.
During the FY, Nu 2,655.9mn is estimated on account of royalty energy from various hydropower plants and Nu 284.5mn is anticipated from power tariff revision. Additional revenue of Nu 15.84mn is also projected from tourism with the implementation of the Bhutan-Korea friendship offer scheduled to be launched in JulyAugust this year.
The government has allocated highest budget to the economic and public services which consists of Nu 20.73bn followed by social services with Nu 15.93bn and general public services with Nu 14.19bn.
During the FY, Nu 5,439.82mn has been allocated to agriculture sector to achieve selfsufficiency, enhancing nutrition security and improving agriculture infrastructure.
Major activities for the year include development and improvement of irrigation channels which consists of Nu 342.44mn and construction and rehabilitation of farm roads consisting of Nu 814.84mn.
For the mining and manufacturing industries, the government has allocated Nu 1,576.9mn including development of industrial estates in Bondeyma in Mongar, Dhamdum in Samtse, Jigmeling in Sarpang and Motanga at Samdrup Jongkhar.
For the road sector, Nu 7,576.29mn has been allocated with major activities including completion of ongoing works to double-lane Northern East-West highway worth Nu 2,725.02mn and Nu 1,115.16mn for ongoing construction of DalbariDagapela, Haa-Samtse, Samtse-Phuentsholing, Refe-Khosala, Pasakha access roads and northern bypass road at Phuentsholing.
Further, Nu 1,188.4mn is allocated for blacktopping of gewog connectivity roads.
Similarly, Nu 4,083.9mn has been allocated for urban development, housing and public amenities sectors and Nu 1,599.45mn for communication sectors.
For preservation and promotion of religion and culture services Nu 2,296.8mn is allocated. This includes construction of Pemagatshel Dzong for Nu 150.32mn, Sarpang Dzong for Nu 101.41mn and Wangduephodrang Dzong Nu 150.56mn.
During the FY, Nu 15,757.796mn accounting for about 27% of the total expenditure is allocated to Local Government. Of the total allocation Nu 13,651.8mn is for dzongkhags and gewogs, and Nu 2,105.9mn for thromdes.
The annual budget report has been referred to the finance committee of the NA for review.