… with an outlay of Nu 322B

Budget: The domestic revenue in the 12th plan is projected to increase by more than 103 percent while the grant portion is expected to decrease by 20 percent, as compared to the 11th Plan, according to preliminary fiscal framework of the 12th Plan.

Should these projections come true, the outlay for the 12th Plan is appropriated at Nu 322.8 billion (B), which is 48 percent more than the 11th Plan.

As per the preliminary fiscal framework worked out by the Gross National Happiness Commission, the domestic revenue in the 11th Plan is projected at Nu 128.99B. This is expected to increase to Nu 262.9B in the 12th Plan.

Despite the criticism that tax exemptions would impact the revenue, tax revenue in the next planned period is projected to increase from Nu 165.5B from Nu 99.8B in the current Plan, which is an increase of 66 percent.

Non-tax revenue is estimated to grow by more than 233 percent, from Nu 29.1B to Nu 97.3B.

The grant portion, on the other hand is expected to decline from Nu 68.5B to Nu 54.4B in the 12th Plan.

Total resources, which is the grant and revenue totted up is estimated at Nu 317.34B in the 12th Plan as compared to Nu 198.1B in the current Plan.

There is a 60 percent increase in total resources.

On the expenditure side there is almost a 40 percent increase in the 12th Plan. The capital expenditure in the next Plan is estimated at Nu 115.3B and the current expenditure is projected at Nu 185.4B. Adding to it the net lending of Nu 22B that the government may allocate to other sectors of the economy, the total outlay for the 12th Plan will be Nu 322.8B.

Considering the total revenue, grant and expenditure the government budget is likely to suffer a fiscal deficit of Nu 5.4B. This means that the revenue and grant combined will be short of Nu 5.4B to finance the expenditure and lending.

So to make up for the deficit, the government will have to borrow. As per the preliminary document, net borrowing in the 12th Plan is estimated at Nu 18B. The net borrowing is expected to increase by 165 percent in the 12th Plan compared with the current Plan.

According to the resource allocation plan, there is Nu 15B allocated for flagship programmes. Flagship programmes however should be formulated multi-sectoral issues that would help achieve the Plan objectives.

Both the central and the local government will be allocated Nu 50B each, and Nu 15B for the thromdes.

The preliminary document also states that 80 percent of the agencies’ capital resources shall be allocated to planned programmes and 20 percent of the capital resource can be used for ad-hoc programmes incorporated on an annual basis.

The 12th Plan calls for a just, harmonious and self-reliant society.

Tshering Dorji