If securing external grant is a measure of progress, Bhutan has done exceptionally well. As of December 31, 2024, Bhutan has made impressive progress in securing external grant support for the fiscal year 2024-2025, with a total budget of Nu 16.522 billion (B). Of this, Nu 6.984B, accounting for 42.27%, has already been received.
During the 12th Meet-the-Press (MTP) session on February 7, 2025, Finance Minister (FM) Lekey Dorji shared that the Government of India (GoI) has made a substantial contribution to this support, with a budgeted grant of Nu 12.206B for Fiscal Year (FY) 2024-2025. Currently, Nu 4.784B (39.19%) of this has been mobilized. Additionally, Bhutan has also secured Nu 2.200B (50.98%) of the budgeted Nu 4.316B in other external grant support, according to the Finance Minister.
On the loan front, the Finance Minister mentioned that approximately Nu 5.7B in external project-tied borrowings are estimated for FY 2024-2025, with Nu 1.7B (30.62%) already mobilized from various development partners.
In the same meeting, the Finance Minister provided an update on ongoing GoI projects under the Department of Surface Transport. These include crucial infrastructure projects such as the construction of new roads along the Gelephu-Trongsa highway, as well as significant improvements to primary and secondary national highways and Dzongkhag roads across all twenty Dzongkhags under Project Tied Assistance (PTA). The construction of key bridges, such as Gektong Zam and Pakhadrang Zam, is also part of this initiative.
Additionally, the Minister shared updates on the initiation of location surveys and Detailed Project Reports (DPRs) for proposed railway links between Gelephu-Kokrajhar and Samtse-Banarhat.
There are 85 major projects included in the 13th Five-Year Plan (FYP), with revised budgets for several of them. This includes the Pema (60-bedded) hospital, with a revised budget of about Nu 114 million, and the STEM Premier School, budgeted at Nu 50 million. The Mother and Child Hospital (MCH) in Monggar is also part of the 85 projects, with a revised budget of about Nu 300 million.
Projects under Dantak have commenced several activities in the 13th FYP, including the construction of the Dewathang-Nganglam Primary National Highway and improvements to various secondary national highways.
However, the Minister also cited challenges faced during the 13th FYP, particularly with delays in the preparation and submission of DPRs and initial project documents by budgetary agencies. “Despite reminders to begin formalities ahead of the budget appropriation act, agencies often wait for official approval, leading to unutilized budgets that spill over into the next financial year,” the Minister said.
“These delays hinder optimal fund utilization,” he emphasized, stressing the importance of timely planning and execution to ensure the success of these critical projects.
The vision of Bhutan’s 13th Five-Year Plan (FYP) is to transform Bhutan into a high-income, sustainable, and inclusive economy, with a focus on Gross National Happiness (GNH) as the guiding framework. This vision is centered on achieving equitable development while safeguarding the country’s cultural heritage, environment, and social well-being. It envisions Bhutan as a carbon-negative nation, where the well-being of its people and the preservation of its environment are intertwined with economic progress.
The grand and ambitious goal of Bhutan’s 13th Five-Year Plan (FYP) is to forge a nation that stands as a beacon of economic prosperity, social inclusivity, and environmental sustainability. At the heart of this vision is the unwavering commitment to the timeless principles of Gross National Happiness (GNH), which has long been the guiding compass of the nation’s development. Bhutan is not simply striving for material wealth, but for a society where the well-being of its people is inextricably linked with the preservation of the environment and the enrichment of cultural values.
Through this visionary roadmap, Bhutan endeavors to harmonize progress with tradition, ensuring that modern advancements do not erode the very essence of what makes Bhutan unique. The country seeks to create a dynamic and prosperous economy that thrives on innovation, entrepreneurship, and sustainable practices, all while maintaining deep respect for its cultural roots, spiritual heritage, and ecological balance.
The 13th FYP is more than a mere blueprint for economic growth—it is a profound pledge to future generations. A commitment to crafting a future where prosperity is inclusive, where the marginalized and vulnerable are empowered, and where the benefits of development are shared by all. The goal is to create a society where every citizen, regardless of their background or status, has access to opportunities, a fulfilling life, and the support they need to flourish.
Moreover, Bhutan’s vision extends far beyond borders—it aims to build a future that is environmentally harmonious, where growth does not come at the expense of nature. Through cutting-edge green technologies, responsible resource management, and an unwavering commitment to carbon neutrality, Bhutan is poised to set a global example in sustainable development.
Ultimately, the 13th FYP seeks to ensure that the Bhutan of tomorrow is a nation that thrives—both in the material and spiritual senses. It will be a country that not only provides for its people’s needs but does so in a way that protects and cherishes the world they live in, ensuring a legacy of harmony, happiness, and sustainability for generations yet to come. Through this bold vision, Bhutan is not merely charting a path to progress; it is reaffirming its commitment to a life that balances modernity with tradition, fostering an enduring legacy of well-being and prosperity for all.
Sherab Dorji from Thimphu
