Bhutan’s national debt stands at a worrying US$ 2B, said Prime Minister Tshering Tobgay. Lyonchhen who was on a tour to the east of the country was speaking to the students of Sherubtse College, yesterday.
Most of the debts, Lyonchhen said, are from the hydropower construction projects. “The hydropower projects once complete will generate revenue but we never know how things will go. For instance, punatsangchhu hydropower project completion has been deferred. This will have an adverse impact on the national debt,” said Lyonchhen.
Describing the debt situation as worrisome, Lyonchhen reminded the students that Bhutan’s economy needs to be strengthened and deepened.
Prime Minister also sensitised undergraduate students on the government’s recently launched public debt policy. The legislation highlights that the non-hydro external debt shall not exceed 35 percent of the Gross Domestic Product (GDP) during the five year plan period.
The policy is to guide the country’s investment, ensure that financial decisions are prudent and public debt is maintained at a sustainable level.
Other objective of the policy is to set a debt ceiling of country’s external borrowings. It is also to manage outflow of rupee and for better management of funds for hydropower projects.
Lyonchhen also urged the students to take up job opportunities that they are passionate about. It need not necessarily be a government job. Citing an example of a Sherubtse graduate in Khamdang who has chosen to become a farmer, the prime minister encouraged students not to shy away from following suit if farming is what interests them.
Prime minister visited Sherubtse College during his week-long gewog visit to Trashi Yangste and Trahigang, which ended on Tuesday.
