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Govt. says the country’s economy is stable for pay revision

July 7, 2019
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The government has assured to bring down the fiscal deficit of 7% to 3 % by the end of their tenure. They added that the country’s economy is stable at the moment for the pay revision. The statement comes following the Opposition Party’s comments that they do not agree with this pay revision and have questioned its sustainability.

The opposition says the pay revision comes when the country is facing a budget deficit.

However, the government said with tax reforms and by speeding up the commissioning of hydropower projects, they will be able to bring down the trade deficit.

At the press conference yesterday, the Foreign Minister Dr Tandi Dorji said the recent comments made by the Opposition are contrary to what they said during the parliament session. He said it is a deliberate effort by the Opposition to misinform the public.

“To pass the money bill you need two-third of the majority, which is  33 votes. We are only 29 of us as the speaker is sitting there. The opposition could have killed the bill. They are saying it’s in the hand of the government and they have the majority. If all the opposition decided not to vote, the bill would never have been passed.”

He said the outcomes of the pay revision will be visible by the end of their tenure. He added the DPT government in the past is responsible for deteriorating the quality of health and education and that the present government is undoing their past mistakes.

The government plans to generate 73% of the outlay budget from the domestic revenue compared to DPT’s 60%. He said the country’s GDP growth was also worst during the DPT government’s time.

“We are going to do tax reforms and we hope to bring in Nu 10bn from the tax reform. Along with our digital Druk Yul, making everything digitalised there will be no tax evasion, there will be no underpayment of taxes. With this strengthening we should have sufficient resource not only to close the fiscal deficit but to also to have little money over,” Dr Tandi Dorji added.

He also said during the DPT’s tenure they went ahead with pay revision of Nu 5bn billion despite the country having deficit of Nu 4bn, risking the country’s economy. However, he said the present government will not do anything, which could possibly risk the country as a whole.

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