Prime Minister Tshering Tobgay launched the government’s Nu 15bn Economic Stimulus Programme in the capital today. The Economic Stimulus Programme will be entirely supported by the Government of India. At the ceremony, the Indian Ambassador, Sudhakar Dalela, announced the immediate release of the first tranche of Nu 2.5bn for the Economic Stimulus Programme.
The Economic Stimulus Programme aims to provide immediate economic relief by creating jobs, fostering new business and entrepreneurship opportunities, and enhancing skills training.
During the launch, the prime minister said that Bhutan’s economy remains fragile despite notable post-COVID-19 pandemic recovery efforts.
“While His Majesty and the government have averted the impact of the pandemic in our economy from becoming a full blown crisis and giving us renewed hope and breathing space, the reality today is that our economy remains vulnerable. It is weak. It is fragile. As such, we must correct this imminent crisis before our economy implodes. As we speak today, we are running out of time.”
The Prime Minister highlighted concerns about high unemployment and attrition rates, and the tourism industry not yet recovering to pre-pandemic levels.
The Economic Stimulus Programme aims to foster economic growth through low-interest loans and training programmes.
The programme will also make subsidised loans available for farmers, agricultural enterprises, start-ups, and businesses under stress, as well as for youth education and home ownership.
The prime minister also shared plans to promote the movie industry in the country and provide training for journalists.
To boost the tourism sector, the programme includes plans for craft and night markets and the development of new tourism products and amenities.
To further promote tourism, the prime minister said that Bhutan festivals will be organised in various Indian cities.
Efforts will also be made to introduce new air connections to key markets in India and beyond, with potential subsidies from the Economic Stimulus Programme.
“This economic stimulus plan is nothing short of a lifeline for our economy. I urge everyone in government and in business to make full use of this opportunity. I look forward to working closely with the private sector to ensure optimal utilisation of this precious lifeline,” said the Prime Minister.
Meanwhile, the Indian Ambassador reaffirmed the Government of India’s ongoing support for Bhutan’s development.
“Through innovative measures, the economic stimulus programme is expected to increase domestic output and create employment opportunities, thus bolstering the attainment of macroeconomic objectives and propelling the economy towards a high growth trajectory.”
At the launch, the prime minister also announced the establishment of a dedicated Economic Stimulus Programme Secretariat within the Cabinet to oversee the effective implementation of all programmes and activities.
Karma Samten Wangda
Edited by Sherub Dorji
