13th Five-Year Plan Targets Diverse Sectoral Growth

DECHEN PEM
THIMPHU

The 13th Five-Year Plan aims to balance economic growth with social, cultural, and environmental progress.

It focuses on innovative strategies and partnerships to create better opportunities, addressing issues like social sector quality, climate resilience, and governance revitalization.

Inspired by His Majesty the King’s guidance, the 13th FYP signifies a strategic shift in implementing GNH to address Bhutan’s evolving needs in the 21st century. Aimed at achieving a high-income GNH Economy by 2034, the plan prioritizes transforming the economy through the interconnected pillars of people, progress, and prosperity (the “3Ps”).

The Healthy Drukyul Programme focuses on universal health coverage, while the Education Transformation Programme aims to enhance learning outcomes and infrastructure. The Socio-cultural Resilience and Community Vitality Programme aims to establish comprehensive social protection, promote work-life balance, and ensure sustainable population development.

The 13th Five-Year Plan aims for robust economic growth with fiscal discipline, targeting a fiscal deficit averaging 3% of GDP, a tax-to-GDP ratio above 15%, and non-hydro debt below 55% of GDP. Total resources amount to BTN 456,345 million, with significant contributions from domestic revenue and grants.

The newly announced budget for the fiscal year 2024-25 amounts to Nu 97.654 billion in total, comprising several key allocations. Of this total, Nu 89.154 billion is earmarked for expenditure, split between Nu 50.809 billion allocated to current expenditures such as salaries and maintenance, and Nu 38.344 billion is designated for capital expenditures like infrastructure projects such as roads and schools.

Additionally, the budget includes Nu 6.182 billion for loan repayments and Nu 2.138 billion for lending activities. Notably, the resources available for covering the total expenditure amount to Nu. 73.182 billion, highlighting a fiscal deficit of Nu. 15.972 billion, which represents approximately 5.2% of the country’s GDP.

The overall size of the 13th Five-Year Plan is set at Nu. 512.28 billion, out of which the total available resources amount to Nu 456.34 billion, resulting in a deficit of Nu 55.93 billion. Within the Nu 456.34 billion available resources, domestic revenue projections stand at Nu. 327.34 billion, while grants contribute Nu 125 billion.

This financial framework outlines a strategic approach to managing developmental goals alongside fiscal realities, ensuring a balanced allocation of resources between revenue generation and external funding support over five years.

The budget allocation across various sectors is as follows: The Social Services sector receives Nu 32,753.026 million, with a 34% share, comprising Nu 20,125.568 million in current expenditures and Nu 12,627.458 million in capital investments.

The health sector is allocated Nu11,057.460 million, accounting for 11% of the budget, split between Nu 7,703.804 million in current spending and Nu 3,353.656 million in capital investments. Education receives Nu 21,695.566 million, making up 22% of the budget, with Nu 12,421.764 million in current expenditures and Nu 9,273.802 million in capital investments.

The Economic and Public Services sector is allocated Nu 26,210.740 million, with a 27% share, including Nu 9,744.735 million in current spending and Nu 16,466.005 million in capital investments.

The Renewable Natural resources sector is allocated Nu 10,228.186 million, representing 10% of the budget, with Nu 4,538.480 million in current expenditures and Nu.5,689.706 million in capital investments. The Mining and Manufacturing Industries sector is allocated Nu 1,959.758 million, accounting for 2% of the budget, with Nu 637.376 million in current spending and Nu 1,322.382 million in capital investments.

The Transport sector received Nu 5,846.216 million, comprising 6% of the budget, with Nu 1,687.139 million in current expenditures and Nu 4,159.077 million in capital investments. The housing and Community Sector is allocated Nu 3,871.845 million, representing 4% of the budget, with Nu 921.598 million in current expenditures and Nu 2,950.247 million in capital investments.

The communications and Technology sector has been allocated Nu 2,561.859 million, making up 3% of the budget, with Nu 1,200.142 million in current spending and Nu 1,361.717 million in capital investments.

The Energy sector is allocated Nu 1,742.876 million, accounting for 2% of the budget, with Nu 760.000 million in current expenditures and Nu 982.876 million in capital investments. The religion and Cultural services sector receives Nu 2,226.106 million, representing 2% of the budget, with Nu 1,039.282 million in current expenditures and Nu 1,186.824 million in capital investments.

The Law-and-Order services sector is allocated Nu 4,095.063 million, comprising 4% of the budget, with Nu 3,832.382 million in current expenditures and Nu 262.681 million in capital investments. The General Public Services sector receives Nu 16,721.932 million, with a 17% share, including Nu 8,920.587 million in current spending and Nu 7,801.345 million in capital investments.

The National Debt Services sector is allocated Nu15,647.962 million, representing 16% of the budget, with Nu 7,147.351 million in current expenditures and Nu 8,500.611 million in capital investments. The debt servicing sector receives Nu 13,329.391 million, comprising 14% of the budget, with Nu 7,147.351 million in current spending and Nu6, 182.040 million in capital investments.

The Lending sector is allocated Nu 2,318.571 million, accounting for 2% of the budget, entirely in capital expenditures.

In total, current expenditures amount to Nu 50,809.905 million, capital expenditures total Nu 46,844.924 million, and the overall budget sum up to Nu 97,654.829 million, reflecting comprehensive financial planning and distribution of resources across various sectors.

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