The plan will also serve as a future roadmap towards a happy, prosperous and secure Bhutan
The country in its 13 Five Year Plan (FYP) aims to increase the gross domestic product (GDP) to USD 5billion (B), and GDP per capita to above USD 6174 by the year 2029.
For this, new and creative solutions will be developed and implemented to address economic, social, and environmental challenges and to create new opportunities for growth.
Similarly, every effort will be made to ensure that economic development is environmentally sustainable, socially responsible, and economically viable in the long term, so that the current needs of the Bhutanese people are provided for, while also preserving natural resources for future generations.
Prime Minister (PM) Dasho Tshering Tobgay said that a strict evaluation and monitoring will be done for the 13th FYP, whereby the respective ministries will be held responsible for any slip-ups, or praises for any progress. The PM also proclaimed that he will personally review the activities of the nine ministries.
Similarly, the PM highlighted that the review report of the plan will also be submitted to His Majesty the King every three months.
To achieve the aims, goals and objectives of the plan, the PM said that it is very important to monitor every activity and to have the outcome as expected as the current plan’s budget is almost double compared to the 12th FYP.
Meanwhile, the 13th FYP has four interconnected objectives that will be pursued towards creating a happy, prosperous and secure Bhutan and realizing the long-term goal of becoming a “High-Income GNH Economy” by 2034.
Similarly, the economic development objective will be the driving force of the 13th FYP, enabled by a transformed and trusted governance ecosystem which underlies the successful implementation of the entire plan.
On the social development front, Bhutan aims to ensure the provision of quality education and skills development, robust health services and social security interventions which are foundational to fostering a happy, prosperous, and secure Bhutan.
The 13th FYP will also prioritize accessible and high quality healthcare as it is essential for ensuring a healthy workforce with enhanced overall productivity as the synergy between education and health not only elevates economic outcomes, but also bolsters social cohesion ultimately leading to a secure and resilient nation.
For instance, the plan will also enhance the safeguarding and will strengthen its sovereignty, territorial integrity, security, unity, well-being, resilience and economic prosperity, amongst others.
Meanwhile, the strategies and programs for the 13th FYP include transformational governance program and the digital transformation program amongst others, where the program will collectively drive the effective implementation of the 13th FYP.
The transformational governance program aims to create a governance framework that is responsive, transparent and inclusive by fostering comprehensive policy development and coherent decision-making, breaking down silos and leveraging collaboration across sectors, and embracing technology to optimize resources and expertise. It emphasizes the involvement of local governments (LGs) and civil society organizations (CSOs) for better results and efficiency in implementing programs and activities, and supporting the role of media for enhanced voice and accountability.
Meanwhile, the fiscal policy objective in the 13th FYP is to ensure robust, inclusive economic growth while maintaining fiscal prudence and macroeconomic stability.
Key targets include containing the fiscal deficit at an average of three percent of GDP over the plan period, achieving a tax-to-GDP ratio above 15%, and limiting non-hydropower debt to below 55% of GDP.
Similarly, total resources for the 13th FYP are estimated at Nu 456,345 million (M), with domestic revenue projected at Nu 327,346M and grants at Nu 125,000M, while tax revenue constitutes Nu 230,623M, and non-tax revenue is estimated at Nu 96,723M. For instance, in the 13th FYP, external grants with a large portion from the Government of India (GoI) will contribute significantly to resource allocation.
Total expenditure is estimated at Nu 512,283M, with current expenditure at Nu 267,283M and capital expenditure at Nu 245,000M.
Meanwhile, the projected fiscal deficit in the 13th FYP is Nu 55,938M, equivalent to 2.97% of GDP. Public debt by the end of the plan period is estimated at Nu 474,419M, representing about 94.8% of estimated GDP.
The majority of debt is external, particularly for hydropower projects, with a declining external debt-to-GDP ratio projected over the plan period.
By Sherab Dorji, Thimphu
