The finance ministry has proposed a national budget of over Nu 135.5bn for the Financial Year 2026-27, with major investments planned in education, health, infrastructure, and energy sectors. The finance minister presented the Budget Appropriation Bill for the Financial Year 2026-27, today. From the total budget, Nu 72.5bn has been allocated for capital expenditure, while Nu 63bn is embarked for current expenditure.
Education and health remain among the government’s top priorities.
The education sector has been allocated a budget of more than Nu 34.9bn supporting the establishment of the International School in Thimphu, STEM School at Drukgyel HSS, and the rollout of Cambridge-aligned curriculum for classes IX and XI among others.
In the health sector, with an allocated budget of more than 12.4 billion ngultrum, the government plans to begin the construction of a Multi-Disciplinary Super-Speciality Hospital and expand CT, MRI, and IVF services at the National Referral Hospital among others.
Finance Minister Lekey Dorji said, “Social services continue to receive the highest allocation at Nu 47.3bn, accounting for 31 per cent of the total budget. This is to further enhance and strengthen the healthcare and education service for the benefit of the people.”
The connectivity sector has been allocated a budget of over Nu 9.4bn which include the maintenance and upgrading of national highways and dzongkhag roads, promoting low-emission transport through adoption of electric vehicles and green mobility initiatives, and upgrading airport infrastructure.
More than Nu 12.8bn has been allocated for RNR sector. Activities that will be pursued include constructing and rehabilitating irrigation systems, completing Commercial Chirup Farms at few locations, implementing National Crop and Livestock Insurance Scheme, establishing floriculture centre, strengthening market linkages, value addition and agri-enterprises among others.
Under the energy sector, the government aims to support the country’s long-term target of achieving 25,000 MW of energy generation capacity by 2040. With an allocated budget of over Nu 1.5bn, it also plans to support solar PV installations in some places and in three central schools, and establishment of 1 MW Green Hydrogen Refueling station in Gidakom among others.
In the mining and manufacturing sector, the government allocated more than Nu 1.9 bn to complete Norbugang Industrial Park and Nganglam dry port, strengthen fuel security, expand mineral exploration and implement integrated digital tourism system.
For communications and technology sector, more than Nu 3.6bn has been allocated to increase digital economy contribution to GDP and support job creation, attract FDIs in technology sector, strengthen rural telecommunications infrastructure among others.
In religion and culture sector, key milestones which will be achieved in this financial year are restoration and conservation of various Lhakhangs and Dzongs, construction of religious sites abroad and improve monastic infrastructure. It will cost more than Nu 2.8bn.
More than Nu 47bn has been allocated for Local Government including current grants, capital grants, project-tied resources and centrally executed programmes.
The National Assembly will deliberate on the Budget Appropriation Bill next month.
Meanwhile, the finance minister also proposed a revising the supplementary budget for FY 2025-26 by Nu 1.2bn. The ministry proposed the revision following additional internal and external grants and loans received. With the revision, the budget for the fiscal year 2025-26 has increased to 139.6 billion ngultrum.
Deki Lhazom/Kinley Bidha
