The 13th Five Year Plan (FYP) is estimated to have a total resource of over Nu 456bn. While more than 70 percent of the revenue is expected to be generated from domestic revenue, grants are expected to constitute the remaining amount. The fiscal policy for the 13th FYP is to ensure robust, inclusive economic growth while maintaining fiscal prudence and macroeconomic stability.
The estimated resource allocation of Nu 456bn is against a projected expenditure of Nu 512bn for the 13th FYP.
Inside the fiscal framework, tax revenue constitutes more than Nu 230bn, while non-tax revenue is estimated at over Nu 96bn. Domestic revenue shows more than 71 per cent growth from the 12th FYP. This revenue is anticipated to cover the current expenditure entirely and finance approximately 24.5 percent of capital expenditure.
The total grant for the next five years is estimated at Nu 125bn. A major portion of the external grant is the Nu 85bn from the Indian government, and the remaining are contributions from the European Union (EU), Japan, UN agencies and other development partners.
Meanwhile, in the expenditure front, current expenditure is estimated at a little more than Nu 267bn, while capital expenditure stands at Nu 245bn. According to the draft 13th FYP report, the growth in current expenditure primarily reflects increases in pay and allowances, general provisions, and interest payments for hydro-loans.
Moreover, by 2029, the 13th FYP aims for achievement of high-income status with a GDP of USD 5bn through innovation and sustainability. It is expected to create a healthy, productive society with equitable, high-quality health, education, and social protection.
The plan also focuses on strengthening the country’s sovereignty, security, unity, and economic prosperity, while enhancing a trusted governance system to accelerate economic growth and improve the quality of life for its citizens.
Further, to enable efficient public service delivery, the 13th FYP intends to address contradictory policies to foster efficient implementation.
Investments will be made in strategic infrastructure such as roads, bridges, airports, and railways. Moreover, the plan document includes enhancing food and nutrition security, promoting tourism in districts, strengthening resilience against cyber threats, and enhancing disaster preparedness and resilience.
Additionally, Nu 72bn has been allocated to the Local Government in the 13th FYP to ensure fairness, transparency, and effectiveness in resource distribution to address local development needs.
Samten Dolkar/Kinzang Lhadon
Edited by Yeshi Gyaltshen
