To meet the cost of recurrent expenditures from internal resources, the Finance Ministry is looking into implementing seven temporary fiscal measures. This was highlighted by the Finance Minister while presenting Budget Appropriation Bill for the financial year 2020-21 in the National Assembly today.
However, if the revenue performance improves, the policy measures will be relaxed.
With the COVID-19 pandemic disrupting the economy, affecting public health and the general livelihood of people, the Finance Minister proposed budget policies including rationalising in-country and ex-country travels.
“Except for those completing terms or superannuating, the Leave Travel Concession (LTC) payments will be deferred towards the end of the financial year. And there would not be hiring of a private building for office space. And finally, postponing the activation of salary indexation to the next financial year,” proposed Namgay Tshering, the Finance Minister.
The proposal also includes slashing of transfer benefits, deferring the option to monetise vehicle quota during the financial year without affecting the date of next allotment and providing current budget as annual (block) grants to all budgetary agencies.
The total budget appropriation for the financial year 2020-2021 is estimated at about Nu 74bn of which about Nu 33bn is for current expenditure and over Nu 36bn for capital expenditure.
Sangay Chenzom/ Tshering Zam
