The Prime Minister, Tshering Tobgay, said the financial assistance the Indian government committed to release, including funding the economic stimulus plan, will help to ease liquidity and boost economy. He was presenting the State of the Nation Report, including the plans and priorities of the government, to the joint sitting of the Parliament, today.
He said the Gross Domestic Product in 2012 was 11.68 percent. “But in 2012 estimates from the National Statistical Bureau have our 2012 GDP growth rate at 4.62 percent.”
Lyonchhen Tshering Tobgay said Rupee shortage is another issue. “Our currency was not accepted across the border and later on it was devalued to Rupee.” The Royal Monetary Authority had to borrow INR at commercial rates and the banks had to stop loans, according to the Prime Minister.
Addressing the Parliament about the economic growth, the Prime Minister expressed concern about the national debt. He said that government will look into the measures to address the increasing national debt and youth unemployment.
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The economic scenario in the country is a concern. The vulnerability of our economy became more evident in the last two years.”
Prime Minister
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“The national debt is at Nu.96 billion. About US$ 400 million of the foreign reserves have been sold to repay short term rupee debt in the last two years.” He said while 80 percent of loans consist of hydropower projects, the huge cost escalation and delays are a concern. “The government will look into measures to address the National Debt.”
Lyonchhen also spoke on the increasing number of youth seeking jobs. “During the Meet the People programme about 90 percent are youth looking for jobs. The government has already started to work on creating jobs and also looking for opportunities aboard.”
He again reiterated that private sector is an engine of growth. To promote the private sector, Lyonchhen said the government will now formulate a Private Sector Development Plan (PSDP) within a year. Bhutan Chamber of Commerce and Industry and its members will be invited to jointly formulate and implement the plan.
“A central focus of PSDP will be to support micro and small enterprises around the country. Small business will be provided with concessional loans and tax waivers. A programme of one gewog one product will be implemented…”
The Prime Minister also said that government will give priority to attract foreign investments to Bhutan. He said the foreign investments will be done through streamlining policies and regulations. FDI, the Prime Minister said will help to create jobs, earn revenue that will help to alleviate rupee shortage among others.
The Prime Minister said the government will also institute a “Build our Homes” programme. Under this programme, it will enable and incentivise the Bhutanese workers to construct houses.
