Going by what the government had to say during the meet the press session today, the economy will soon be assuming a higher growth rate compared to just 2.05 percent it achieved in 2013.
Economic affairs minister, Norbu Wangchuk said, the reason why the economy achieved a minimum two percent growth rate was because there were several restrictions and bans which significantly subdued private investment.
The government basically inherited an empty coffer from the previous government, he said.
However, a higher growth rate can be achieved since government activities are now picking up, the Business Opportunity and Information center is operational, Dagachhu project and Dungsam cement plant has been commissioned, foreign investments are coming in and the economic development policy is being reviewed.
“We are looking at a brighter prospect,” said Lyonpo, Norbu Wangchuk. He said their confidence in the economy has improved.
To monitor economic activity in the private sector and at the macro level, a new unit will be instituted within the Gross national happiness commission and the finance ministry
Responding to a question on excess liquidity, Prime Minister Tshering Tobgay said, if the banks feel there is excess liquidity, then it must be discussed with the central bank and the government, after which measures could be implemented to tackle with the situation.
Regardless of what the finance minister had to say, if banks feel there is excess cash, it means there is a problem, the RMA will let us know and we will work together, the prime minister said.
He added, it could impact the economy, “we simply cannot let our banks hold onto to these excess cash, it has to be utilised somewhere.”
