About 50 percent budget for the capital expenditure has been slashed for the Dzongkhags for the financial year 2012-13. This would mean the expenses will be brought down in upgrading and purchasing physical assets.
A total of Nu.3.68 billion was allocated for the 20 Dzongkhags in the previous financial year. It is just about Nu.2.58 billion for this financial year. The finance minister, Wangdi Norbu, was in the National Council presenting the National Budget, yesterday.
The Bumthang NC member, Tshewang Jurmi, said since this is the last year of the 10th five year plan, the government seems not as much bothered about the development activities as they should be.
Many Dzongkhags have seen a sharp reduction in capital expenditure of as much as 67 percent in Sarpang Dzongkhag. On the other hand, the capital budget for Thimphu Dzongkhag saw an increase of 25 percent. The imbalance in the distribution of budget undermines the government’s policy of balanced regional development, said Tshewang Jurmi.
Since almost all the development activities are concentrated in Thimphu, far flung Dzongkhags like Dagana, Zhemgang and Gasa are neglected. “If the trend continues, even in 100 years, these places will remain as it is now, without development,” said Dagana’s representative member, Sonam Dorji.
Lyonpo Wangdi Norbu said the current expenditure is high given the increased employment in the civil service. He also said most of the projects have been completed. Since there are no new projects at the moment, there has been a certain drop in the total capital budget, he added.
Though there is a drop in capital expenditure, there is an increase of 6.3 percent in the current expenditure in this financial year.
