The Prime Minister, Tshering Tobgay, said the main purpose of their Economic Stimulus Plan (ESP) is to inject more money in the economy.
“The country is short of cash at the moment. An economic stimulus plan is needed to improve the country’s economy,” said Lyonchhen.
He said the government will increase the capital of the banks with which the government has shares equity.
Lyonchhen said the government will also loan money to other banks through bonds and other devices. The government has also thought of stimulating the economy by getting the money into hands of businesses.
He said the government will also give money to the unemployed youth who want to launch their businesses. There are plans to give money to the older people through old age help.
The Prime Minister also said a study has begun to find out the country’s real Gross Domestic Product (GDP). He said the GDP growth rate announced by the previous government was at 8 percent which was mainly attributed by investments in the hydropower sector.
“Our concern was if you remove the investments from hydropower sector, GDP growth won’t be as attractive. At that time I clearly remember the then government saying that hydropower was important part of GDP and we can’t separate the two.”
However, he said, if you want to look at the growth outside the hydropower we need to separate the two because the investments in the hydropower sector, most of the money goes out of the country via foreign contractors.
