Budget utilization in second quarter of current FY at 35%

The actual expenditure of the second quarter is Nu 10.6bn of the revised capital budget

The total expenditure as of December 31, 2021, stands at 35% of the revised budget of Nu 79.6bn, while the total release at the end of the second quarter constitutes 44% against the revised budget, according to the Budget Performance Report of the fiscal year.

Of the release of Nu 37.6bn, the expenditure reported is Nu 29.7bn which includes current expenditure of Nu 16.4bn, capital expenditure of Nu 10.6bn, and lending and repayment with Nu 2.7bn.

However, the report states that the overall expenditure will increase if the advances are considered.

According to the report, the revised current budget as of December 31, 2021, is Nu 35.5bn which is a 30% increase as compared to the actual current expenditure of the previous FY 2020-21, which was Nu 31.7bn.

The increase in the current expenditure was mainly on account of an increase in interest payment with 80% as compared to the FY 2020-21.

Similarly, the revised capital budget excluding the lending and repayment is Nu 41.7bn, which is 55% more as compared to the actual expenditure of the previous FY 2020-21, which was Nu 26.9bn.

The increase in the capital budget was on account of increased allocation of the capital budget during the current FY as compared to the previous FY, the report states.

In addition, of the revised current budget for the FY 2021-22, the actual expenditure reported at the end of the second quarter is Nu 16.4bn, which is an increase of around 20% from the FY 2020-21, which was Nu 13.6bn expenditure reported during the same period.

According to the report prepared by the Department of National Budget, the actual expenditure reported till the end of the second quarter is Nu 10.6bn of the revised capital budget for the FY 2021-22, which is an increase of 72% as compared to the last FY 2020-21 during the same period.

“The increase in the expenditure performance could be because of relaxation of COVID-19 restrictions that has given a better opportunity to the budgetary bodies to implement the activities at the ground,” the report states.

Meanwhile, for the sector-wise expenditure for the second quarter of the two FYs 2020-21 to 2021-22, the overall expenditure performance shows an improvement of 39% as compared to the last FY during the same period.

The expenditure performance as compared to the revised budget stands at 34%, which is a slight increase as compared to the last FY 2020-21, which was about 28% during the same period.

During the FY, the overall grants expenditure performance has increased by 29% as compared to the FY 2020-21.

The transfers are mainly allocated as annual grants for local governments, subsidies, and equities for State Owned Enterprises and grants to other non-budgetary agencies.

“The overall increase in the expenditure performances was attributed from the expenditure performance under grants components,” the report states, which includes the expenditure reported by the LGs with a 41% increase as compared to the last FY.

Further, there is also an increase in the expenditure under subsidy for the Bhutan Broadcasting Services amounting to Nu 102mn. During the FY, Nu 5.7bn was provisioned under the General Reserve in meeting the unforeseen expenditures for the mentioned broad activities, which are transferred to the agencies after fulfilling the established criteria.

Kinley Yonten from Thimphu