The Finance Minister presented a detailed update on the budget and projects under the 13th Five-Year Plan while responding to Bartsham-Shongphu MP. As of now, 61 projects are underway under Project Tied Assistance, while nearly 280 Small Development Projects have been proposed, driving growth at the local level and beyond.
The government of India has committed Nu 100bn as capital budget allocation. Of which Nu 70bn is allocated for Project Tied Assistance. The finance minister said a total of 61 projects under the Project Tied Assistance amounting to some Nu 49bn have been approved. So far, the government has received over Nu 1.7bn from the Indian government.
Further, the allocated budget for the program grant is Nu 5bn.
Finance Minister Lekey Dorji said, “To implement Project Tied Assistance projects before receiving the budget, the Ministry of Finance has pre-financed Nu 1.09bn for various agencies. This funding is to support ongoing Detailed Project Reports and accelerate project progress.”
Additionally, 279 small development projects have been proposed for the Fiscal Year 2024-2025 and Fiscal Year 2025-2026 to the Indian government amounting to Nu 4.2bn.
The Minister said, “For the fiscal years 2024-2025 and 2025-2026, as part of the first tranche of the SDP, the government has submitted a proposal to the Indian government for the disbursement of 4.2bn ngultrum. We expect the approval by December, after which the works will commence”
The country received more than Nu 2bn from other development partners as of last month.
This fiscal year, the external grant is projected at Nu 16.5bn . And the government has received only Nu 4.23bn as of now.
Kinzang Lhadon
Edited by Tandin Phuntsho
