In today’s session of the National Assembly (NA), the Finance Minister, Namgay Dorji presented an estimate budget appropriation of Nu 43.5bn as an interim budget for the Financial Year (FY) 2018-19.
The minister also introduced fiscal report of FY 2016-17, supplementary budget of FY 2017-18 and macroeconomic status report in the house.
The Interim Budget refers to a budget that keeps the state functioning after dissolution of the present government until the formation of the new government.
Of the total budget appropriation (Nu 43.5bn), 67 per cent is for current expenditure, 25 per cent for capital and the balance is for repayment and on-lending.
The current expenditure for FY 2018-19 is estimated to increase by 1.7 per cent compared to FY 2017-18. The increase is on account of provisions for retirement benefits of Members of Parliament and general elections. And capital expenditure is provided for spillover activities, critical regular activities, on-going donor funded activities and loan repayment and on-lending.
Highlighting on the fiscal performance report for FY 2016-17, the finance minister stated that the fiscal deficit stands at Nu 5.3bn. Fiscal deficit means when the government’s expenditure exceeds the revenue it generates.
The Money Bill was referred to the Finance Committee of the National Assembly for further assessment and recommendations. The house will deliberate on the proposed Interim Budget on June 21.
