The government targets an annual GDP growth rate of 8% to achieve a USD 5bn economy by 2029. During the meet the press session today, Finance Minister, Lekey Dorji, said that bringing in 300,000 tourists annually, doubling foreign direct investments, and planned hydropower projects, which are outside the 13th Five-Year Plan will help stimulate the economy.
Responding to questions about how the government will achieve a high-income status of a USD 5bn economy by 2029 and USD 10bn by 2034, the finance minister said several factors would help achieve the target.
The minister added that to aid economic growth, the government plans to double foreign direct investments to Nu 100bn. As of 2022, foreign direct investments are worth about Nu 45bn.
According to the minister, over Nu 300bn worth of hydropower projects are underway in the country that are not part of the 13th Five-Year Plan projects. This, Minister Lekey Dorji said, will assist in economic growth.
One of the contributors to the growth target will be the plan to bring in 300,000 tourists annually. The minister also talked about how the Gelephu Mindfulness City will aid development in the country.
Meanwhile, the prime minister informed the members of the press that an additional Nu 50bn has been secured as capital expenditure for the 13th Five-Year Plan.
The additional capital budget will come from Japan, the European Union, the Work Bank, and the Asian Development Bank.
This takes the total capital budget for the 13th Five-Year Plan from grants and loans to Nu 135bn, which includes the 85bn announced by the Indian Prime Minister, Narendra Modi, during his recent state visit to Bhutan.
On the sidelines of the meet the press session, industry, commerce and employment minister, Namgyal Dorji, said that a 15bn economic stimulus plan secured from the Government of India will help kick start the economy.
A meeting will soon be convened to allocate funds from the economic stimulus plan to different sectors. The minister also added that work will also be done to improve ease of doing business in the country.
The government is also targeting green financing mechanisms to aid economic growth.
Sherub Dorji
