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12th FYP fiscal deficit could soar up to Nu 40bn: PM

December 24, 2018
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The total budget outlay for the 12th Five Year Plan is Nu 310bn and the projected fiscal deficit is Nu 29bn.

Fiscal deficit refers to the budgetary gap between the total expenditure and resources.

Speaking at the Meet the Press session on Friday, Prime Minister Dr Lotay Tshering said the fiscal deficit could exceed the projected Nu 29bn. He said it could touch Nu 40bn.

This means the actual budget requirement for the 12th plan could be higher than the outlay. In other words, we would need Nu 40bn more.

The shortfall, Lyonchhen said, is mainly because the major pledges of the government are not budgeted in the draft 12th plan.

The pledges include providing maternity allowance and free Wi-Fi, and equipping hospitals with ultrasound and endoscopy services.

The government says it is not worried about the deficit. Rather, it’s an opportunity to gather funds, Lyonchhen says.

As for the projected Nu 29bn fiscal deficit, the government hopes to source Nu 4bn by availing interest-free, highly concessional loans from the international financial institutions.

The remaining Nu 25bn, the government said, will be gathered through internal borrowings.

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