To­tal re­sources of Nu 280bn pro­jected in 12th Plan

Business Bhutan - - Nation - Dechen Dolkar from Thim­phu

The to­tal re­sources pro­jected in the 12th Plan is Nu 280bn, of which Nu 217bn is pro­jected from do­mes­tic rev­enue and Nu 63bn from ex­ter­nal grant.

Of the ex­ter­nal grant, the Gov­ern­ment of In­dia had al­ready ap­proved Nu 45bn as as­sis­tance and the re­main­ing ex­ter­nal grant would be around Nu 18bn. The to­tal bud­get out­lay of the 12th Plan is Nu 310bn.

The Sec­re­tary of GNH Com­mis­sion, Thin­ley Nam­gyel said the re­main­ing ex­ter­nal grants would be from the EU, Ja­pan, the United Na­tions and from other donor agen­cies.

“The gov­ern­ment has al­ready mo­bi­lized 71% of the ex­ter­nal re­sources,” he added.

The Nu 45bn would be bro­ken up in three cat­e­gories - the pro­gram grant, a flex­i­ble al­lo­ca­tion in which funds are re­leased on a quar­terly ba­sis; pro­ject­tied as­sis­tance, a ma­jor com­po­nent of the fund which will be mainly used to fi­nance large projects and to fund cen­tral agen­cies; and small de­vel­op­ment projects, projects with a max­i­mum ceil­ing of Nu 50mn and projects im­ple­mented at gewogs and dzongkhags level.

Thin­ley Nam­gyel said the gov­ern­ment has re­quested the Gov­ern­ment of In­dia to have the first plan talk by mid-Fe­bru­ary.

Mean­while, for the 11th Plan the do­mes­tic rev­enue was Nu 143bn and in 12th Plan it’s pro­jected to be 217bn, an in­crease by al­most around 53%. Sim­i­larly for the 11th Plan the ex­ter­nal grant was Nu 69bn and in 12th Plan it is pro­jected to Nu 63bn. The gov­ern­ment has also pro­jected fis­cal deficit of Nu 29bn.

Dur­ing the first meet the press ses­sion, Prime Min­is­ter Dr Lo­tay Tsh­er­ing said the gov­ern­ment has five years to work on and with re­source al­lo­cated for the pledges the 12FYP will shoot over Nu 320bn to Nu 330bn.

“With more re­course al­lo­ca­tion in the fu­ture the fis­cal deficit may even reach to Nu 40bn in the fu­ture,” Ly­onch­hen said.

The GNHC Sec­re­tary said their tar­get is to main­tain fis­cal deficit within 3% of the Gross Do­mes­tic Prod­uct (GDP).

“So we can’t have any fig­ure as fis­cal deficit. There is a tar­get of Nu 29bn deficit, which ac­counts to 2.4% of the GDP. There is a slight room for it to in­crease and it is sus­tain­able,” he added.

Dur­ing the first meet the press ses­sion, fi­nance min­is­ter Nam­gay Tsh­er­ing said the gov­ern­ment has adopted strat­egy like bor­row­ing of Nu 4bn at a highly con­ces­sional rate with­out in­ter­est from Asian De­vel­op­ment Bank (ADB) and World Bank and Nu 25bn iden­ti­fied to be bor­rowed from the fi­nan­cial in­sti­tu­tions in the coun­try.

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