Bhutan’s budget for 2012-13
Bhutan’s Thinley government has presented the national budget for the fiscal year 2012-13 on Wednesday. This is the last budget from Thinley-led government before the second parliamentary elections.
Finance Minister Wangdi Norbu presented the budget of Nu 33.4 billion, less than revised budget of last fiscal year. Norbu said, of this Nu 21.1 billion will be met through domestic revenue while Nu 10.7 billion will be met through external grants. Of the external grants, Nu 7.5 billion 70 per cent comes from India. While rest is included as program grants and project-tied grants.
The government expects to cover all current expenditure for the year through internal resources.
With estimation of Nu 34.5 billion expenses, the budget is a deficit by Nu 1.5 billion including net lending Nu 1.00 billion in negative.
Sectoral allocation
Economic and public services has been given the highest priority – 34 per cent of the total budget allocated for this area. This area includes agriculture, mining and manufacturing, road, housing and community, communications and energy.
Similarly, social services (education and health) will get 25 per cent of the budget and general public services gets 14 per cent. National debt services will get 15 per cent, 9 per cent for maintaining law and order and 3 per cent for cultural promotion.
If we look at specific sectoral allocation, education has been given the highest priority with 18 per cent of the budget allocated.
Of Nu 1.2 billion allocated for cultural services, the government has allocated only Nu 10 millions for a construction of Hindu temple in Thimphu while rest goes for promotion of Buddhist.
Amidst debates whether the retiring National Assembly MPs must be given retirement benefits, the government has allocated Nu 22.6 million as retirement benefits for the MPs. Similarly Nu 15.6 million has been allocated as retirement benefits for National Council MPs.
The government has allocated Nu 500 million (against election commission’s proposal of Nu 683.6 million) for the parliamentary elections in 2013.
Though Royal Bhutan Police has been allocated budget, there has been no allocation of any budget for Royal Bhutan Army and the Royal family. It has been the traditional mystery that government has never in history allocated budget for Royal affairs and Royal Bhutan Army. The royal family might have incomes from investments for livelihood, but there is no way Royal Bhutan Army makes any incomes for its survival.
“I submit that our budget have been always prepared, fully keeping in mind, the resources available and keeping the fiscal deficit within reasonable limits. In terms of actual results, they have been even better. This budget too has been prepared along those sound principles,” Wangdi Norbu said while presenting the budget.
He said the government has taken care to ensure that the deficit are in fact even lower than in the past, keeping in mind, the shortage of Indian Rupee the economy has been facing.
The deliberation on the national budget will be held on Monday.
The government projects national economy to grow by 12.5 per cent in financial year 2012-13. The growth is expected to be driven by the hydropower sector, projected to grow by 9.9 per cent in the current financial year, with the completion of the Dagachu hydro project.