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National debt up by about Nu 83bn since 2013

November 18, 2017
in Uncategorized
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In four years time from 2013, the National Debt rose by about Nu 83bn during this government’s tenure.

The National Debt stands at Nu 184bn today. According to the Prime Minister Dasho Tshering Tobgay, the increase was mainly due to the huge hydropower loans required for the ongoing hydro power projects in the country.

Panbang, MP Dorji Wangdi questioned the Prime Minister to explain the reasons for the increase in the national debt when not a single major national project has been initiated.

Lyonchhen responded that while continuing the Hydro Power Projects initiated by the previous government, Bhutan had to continue to seek loans for its successful completion.

“We have to understand how it has increased by 83bn. These are all pertinent to the hydro power projects in the country. Within 4 years time, when the National Debt increased by 83bn, we had to avail 89bn ngultrum particularly as hydro loans,” added the Prime Minister.

Out of Nu 89bn hydro loans, Nu 26.2bn is for Punatsangchhu Hydroelectric project I, Nu 32bn for Punatsangchhu Hydroelectric Project II, Nu 2.7bn for Dagachhu hydroelectric project and Nu 28.3bn for Mangdechhu Project. It excludes loans for Nikachhu and Kholongchhu projects.

The Prime Minister further said though the hydro related loans have increased the non hydro loans are expected to come down by about Nu 6bn next year from the current figure of Nu 44bn.

 

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