The total budget estimated for the financial year (FY) 2018-19 is Nu 47.6bn. The total budget appropriation for FY 2018-19 accounts for about 15% of the total outlay of the 12th Plan.
Finance Minister, Namgay Tshering, presented the annual budget for FY 2018-19 in the Parliament, National Assembly session on Friday.
The total budget appropriation includes budget of Nu 36.3bn passed by the 11th session of the 2nd Parliament.
For the FY 2018-19, the ministries will receive 49% of the total allocation as most of the on-going activities are implemented by the ministries.
Similarly, the Local Governments will receive about 26% of the total budget followed by autonomous agencies, constitutional bodies and the judiciary.
The annual budget for FY 2018-19 states that the total resource estimated for the FY 2018-19 is Nu 39.8bn. The total domestic revenue for the fiscal year is estimated to be Nu 33.9bn. Of the total domestic revenue, Nu 25bn is tax revenue and Nu 8bn is from non-tax revenue.
The domestic revenue has been revised downward by Nu 1.9mn. It is mainly attributed due to fall in tax revenue and non-tax revenue on account of decrease in electricity production due to poor hydrology and delay in the commissioning of Mangduechhu Hydro Projects.
The external grant during fiscal year is estimated to Nu 5.9mn. Of the total, major portion is expected from Government of India. The balance is expected from the EU, World Bank, ADB and other UN agencies for on-going-projects.
The total expenditure for FY is estimated at Nu 45bn of which 29bn is current expenditure and Nu 16bn is capital expenditure.
It states that of the total current expenditure-37% is for salary and wages, 35% for operation and maintenance, 23% for subsidy, grants and transfer and 5% is for interest payment.
Capital budget includes provisions for on-going activities, new activities and flagship programs based on the priorities of the 12th plan.
Of the 10 ministries, Ministry of Works and Human Settlements received the highest budget allocation with Nu 2.36mn.
Finance Minister, Namgay Tshering, said that the capital budget of Nu 33mn is allocated in judiciary mainly for the construction of Drangpon’s residences at Wangduephodrang, Dorokha and Phuenstholing and renovation of courts at Trashigang and Jomotshangkha.
Capital budget of Nu 28mn is allocated to Anti-Corruption Commission for the construction of office building at Phuentsholing, implementation of business integrity initiative and to conduct specialized training on investigation, prevention and education.
The Finance Minister also said that a major share of the capital budget for the dzongkhags and gewogs is allocated for the construction and maintenance of farm roads, rural water supply schemes and irrigation channels.
During the FY, budget has been provisioned to start the implantation of One Gewog One Product and 24X7 supply of safe drinking water under the flagship program.
Also, a fiscal deficit of Nu 5.23bn is projected. Finance Minister, Namgay Tshering, said that to address these issues, the government will continue to mobilize concessional loans from multilateral development banks and bilateral partners besides resorting to domestic borrowings for financing the fiscal deficit.
During the FY, Nu 3.4bn is estimated to be borrowed from external sources and internal borrowing is estimated at Nu 2.8mn for financing the residual fiscal deficit.
Dechen Dolkar from Thimphu