Thinley Namgay

The Government of India (GoI) has approved 61 Project Tied Assistance (PTA) projects under Bhutan’s 13th Plan, with the first tranche of Nu 49,578.75 million already approved. 

Finance Minister Lekey Dorji informed the National Assembly about this development on Monday.

Between July and November 2024, Bhutan has received Nu 1,796.46 million from the total amount, with additional funding expected in the coming months. 

Lyonpo also said that the GoI has committed a programme grant of Nu 5 billion.

Under this agreement, Nu 250 million will be disbursed every three months, with the first installments for July, August, and September already received.

The finance minister’s remarks came in response to a query from Rinchen Wangdi, Member of Parliament (MP) from Bartsham-Shongphu Constituency in Trashigang, who sought an update on the total PTA funds received so far and the number of projects approved.

MP Rinchen Wangdi also inquired about the total Small Development Projects (SDP) grant  from India. 

Lyonpo acknowledged some delays in disbursements for SDP but expressed optimism that the funds would arrive soon.

Of the total Nu 10 billion allocated for SDP, Nu 7 billion is earmarked for gewogs, with Nu 1.5 billion each for thromdes and dzongkhags. As of now, 279 SDP projects have been approved by the government in consultation with local MPs and authorities. For the first tranche covering the years 2024-2026, the government has requested approval from India for Nu 4.2 billion.

“We are hopeful that the GoI will approve the remaining funds and start work on these projects by December this year,” Lyonpo said.

Rinchen Wangdi also quizzed the finance minister on funds  obtained from other development partners.

In response, the finance minister reported that Bhutan has received Nu 2,186.44 million from other development partners between July and October 2024.

The total budget outlay for the 13th Plan is Nu 512B, of which Nu 267B  is for recurrent activities and the remaining Nu 245B  for capital works.

In line with Article 14(6) of the Constitution, the recurrent expenditure will be funded entirely through domestic revenue, which is estimated at Nu 331 billion, yielding a surplus of Nu 64 billion. This surplus will be used to finance capital projects.

For the capital budget, India has committed Nu 100 billion, which includes Nu 70 billion for PTA, Nu 10 billion for SDP, Nu 5 billion in programme grants, and Nu 15 billion for the Economic Stimulus Plan.

In addition,  Bhutan expects Nu 40 billion in capital funding from other development partners.