The Royal Audit Authority predicts that the country’s debt would rise by 121 percent by the end of the 11th Five Year Plan (FYP). “It is worrying,” said the Nganglam MP, Choida Jamtsho, in the National Assembly, while asking the Finance Minister, Namgay Dorji, the status of the country’s debt.
The national debt at the beginning of the 10th FYP was Nu. 37.8 BN. In five years, the debt increased to Nu.101.3 BN.
Nine months into the 11FYP, and the government has already borrowed Nu.99.5 BN, mostly from external sources.
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Lyonpo Namgay Dorji said more than 85 percent of the lending was made to complete the ongoing hydropower Projects in the country. He said the government borrowed the money after deliberation and negotiation on the advantages of borrowing against the likely consequences. “The government is equally concerned.”
The MP from Nubi-Tangsibji, Nidup Zangpo, asked if the government was formulating policies to reduce the borrowings.
The Finance Minister said they had no option but to take loans this time. “The government will however be mindful in the future and consider loans until absolutely necessary.”
