As Bhutan enters the new year, the government has taken stock of the challenges encountered in 2025 and outlined its major priorities for 2026, with a focus on accelerating development delivery, strengthening governance, and advancing long-term economic reforms.
Prime Minister (PM) Dasho Tshering Tobgay said that while 2025 did not present any single overwhelming crisis, the year was marked by complex implementation challenges that required sustained coordination and adaptive policy responses. He attributed the country’s overall stability to the guidance and support of His Majesty The King.
“The early years of the Plan have passed with relatively few major hurdles. With His Majesty’s guidance and support, we have been able to navigate these challenges effectively,” the PM shared during the 23rd Meet The Press (MTP) on 31st December 2025.
Acknowledging that implementation of the 13th Five-Year Plan (FYP) did not progress as quickly as anticipated in its initial phase, the slow start was not unusual according to the PM.
“We are still at the beginning of the 13th FYP. Much of the early phase is spent on mobilizing resources, which inevitably slows down implementation,” he said.
To improve efficiency and accountability, the government has introduced annual deliverables for ministries, agencies, and local governments. These institutions are now required to identify and deliver specific outputs within each fiscal year, as well as define their top five priority deliverables for the remainder of the plan period.
“Efforts have also been made to strengthen monitoring mechanisms to ensure that progress is tracked and course corrections are made in a timely manner,” the PM said.
Human resource capacity emerged as another major challenge in 2025, driven largely by continued staff attrition across sectors. The PM said that the government responded by prioritizing capacity-building initiatives, improving inter-agency coordination, and strengthening monitoring and review systems.
Climate-related vulnerabilities further compounded implementation challenges. The PM highlighted the heavy rainfall event on 4 October, 2025 which caused widespread damage to public infrastructure, including hydropower facilities.
“Seventeen bridges were damaged, and the disruption resulted in an estimated revenue loss of Nu 935 million (M) from electricity generation,” he said.
Despite these setbacks, the government conducted regular reviews and stakeholder consultations to allow for adaptive implementation and timely policy adjustments. Youth unemployment and economic diversification remained central policy concerns throughout 2025. The PM said that creating quality employment and expanding the economy beyond traditional sectors requires structural reforms that take time to yield results.
“The government has rolled out targeted programmes in employment, skills development, and entrepreneurship, which have been expanded to address youth unemployment,” he said.
Limited private sector participation also posed challenges. According to the PM, constraints such as market size, access to finance, and regulatory bottlenecks continued to affect private investment.
“To address this, the government undertook a comprehensive review of the business regulatory environment to resolve key constraints faced by the private sector”.
Addressing public concerns surrounding the Economic Stimulus Programme (ESP), the PM underlined that allegations of corruption had been thoroughly examined by the Anti-Corruption Commission (ACC), which found no evidence of corruption in the program’s implementation.
“Diversion of loan funds has been a recurring issue in many loan schemes, including ESP. However, the ACC has not found evidence of corruption so far,” he remarked, adding that any credible evidence or allegation involving ministerial interference would be fully investigated.
“If anyone has concrete evidence—or even a credible allegation—that a minister interfered in ESP loans, I will ensure it is investigated fully,” the PM reiterated.
He acknowledged that ESP’s competitive nature could lead to dissatisfaction among unsuccessful applicants but maintained that the programme remains vital to national development.
“The alternative would be to discontinue ESP and redirect the funds elsewhere, but ESP continues to be an important and attractive instrument for economic recovery,” the PM said.
Priorities for 2026
Despite the challenges of 2025, the PM said that the experience had strengthened the government’s capacity to deliver reforms more effectively. “The lessons from the first two years have positioned us to accelerate delivery, deepen reforms, and ensure that the objectives of the 13th FYP translate into tangible benefits for our people” .
The government’s key priorities for 2026 include implementation of the Diamond Strategy, the 13th FYP, the 21st Century Economic Roadmap, and other national development initiatives.
Under the Diamond Strategy, a dedicated committee will be established to oversee implementation. One of its core pillars is economic growth, with the government targeting tenfold growth over the long term. The PM said an office has already been set up and work has commenced.
“Another important area under the Diamond Strategy is improving public service delivery, where implementation has also begun,” he added.
Likewise, the 13th FYP will continue to guide national development efforts across economic and social sectors, strengthening security, enhancing governance, and implementing the ESP to support priority sectors and communities.
Meanwhile, the 21st Century Economic Roadmap will be driven by a newly established Vision Delivery Unit under the Prime Minister’s Office (PMO), tasked with coordinating strategic initiatives and ensuring effective implementation.
Nidup Lhamo
From Thimphu
