The Prime Minister says Bhutan is on track to achieve its vision of becoming a high-income GNH economy by increasing the country’s GDP to USD 10bn by 2034. He said the GDP has already grown by 40 per cent since the start of the 13th Five-Year Plan, reaching USD 3.5bn.
The government aims to achieve a GDP of USD 5bn dollars by the end of the 13th Five-Year Plan. During the question hour session of the National Council, Pema Gatshel MP Jamyang Namgyal said the government’s strained fiscal situation could affect the target.
“The 13th Five-Year Plan estimates Nu 512bn, but the resources we can mobilise amount to only Nu 456bn, leaving a gap of Nu 56 billion. Another concern is the three per cent fiscal deficit in the GDP,” said Jamyang Namgyal, Pema Gatshel MP, NC.
However, Prime Minister Tshering Tobgay said the government has already secured the resources needed for the 13th Five-Year Plan.
“The total resources for the 13th Five-Year Plan have now reached Nu 517 bn, higher than the earlier estimate of Nu 456bn. In addition to the planned budget, we have identified ways to mobilise another Nu 61 bn.”
However, the Prime Minister said the fiscal outlay could increase, as the government may need to invest in additional projects identified during the mid-term review.
The Prime Minister added that domestic revenue has increased from Nu 330bn at the start of the 13th Five-Year Plan to Nu 383bn.
He said the government also generated Nu 52bn through dividends and profit transfers from Druk Holding and Investments, state-owned enterprises, and the Ministry of Finance.
In addition, Bhutan received financial support of Nu 85bn from India, including Nu 15bn for the Economic Stimulus Programme.
The Prime Minister said Bhutan can continue to achieve its goals if the country strengthens sectors such as energy, tourism, agriculture, and infrastructure.
Singye Dema & Kinley Bidha
