Total resources of Nu 280bn projected in 12th Plan

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The total resources projected in the 12th Plan is Nu 280bn, of which Nu 217bn is projected from domestic revenue and Nu 63bn from external grant.

Of the external grant, the Government of India had already approved Nu 45bn as assistance and the remaining external grant would be around Nu 18bn. The total budget outlay of the 12th Plan is Nu 310bn.

The Secretary of GNH Commission, Thinley Namgyel said the remaining external grants would be from the EU, Japan, the United Nations and from other donor agencies.

“The government has already mobilized 71% of the external resources,” he added.

The Nu 45bn would be broken up in three categories – the program grant, a flexible allocation in which funds are released on a quarterly basis; project-tied assistance, a major component of the fund which will be mainly used to finance large projects and to fund central agencies; and small development projects, projects with a maximum ceiling of Nu 50mn and projects implemented at gewogs and dzongkhags level.

Thinley Namgyel said the government has requested the Government of India to have the first plan talk by mid-February.

Meanwhile, for the 11th Plan the domestic revenue was Nu 143bn and in 12th Plan it’s projected to be 217bn, an increase by almost around 53%. Similarly for the 11th Plan the external grant was Nu 69bn and in 12th Plan it is projected to Nu 63bn. The government has also projected fiscal deficit of Nu 29bn.

During the first meet the press session, Prime Minister Dr Lotay Tshering said the government has five years to work on and with resource allocated for the pledges the 12FYP will shoot over Nu 320bn to Nu 330bn.

“With more recourse allocation in the future the fiscal deficit may even reach to Nu 40bn in the future,” Lyonchhen said.

The GNHC Secretary said their target is to maintain fiscal deficit within 3% of the Gross Domestic Product (GDP).

“So we can’t have any figure as fiscal deficit. There is a target of Nu 29bn deficit, which accounts to 2.4% of the GDP. There is a slight room for it to increase and it is sustainable,” he added.

During the first meet the press session, finance minister Namgay Tshering said the government has adopted strategy like borrowing of Nu 4bn at a highly concessional rate without interest from Asian Development Bank (ADB) and World Bank and Nu 25bn identified to be borrowed from the financial institutions in the country.

Dechen Dolkar from Thimphu