GoI released Nu 1.22bn for development projects in Bhutan

GoI released Nu 1.22bn for development projects in Bhutan

The government of India (GoI) has released Nu 1.22bn for various development projects in Bhutan. It is being undertaken through GoI’s Trade Support Facility (TSF) and the Program Grant (PG).

However, for the 12th Five Year Plan of Bhutan, the government of India has committed Nu 8.5bn as the untied Program Grant to the Royal Government.

In addition, India has also committed Nu 4bn as a transitional trade support facility for the 12th Plan Period. To upgrade the Trade Infrastructure of Bhutan, improve the Ease of Doing Business and strengthen bilateral economic linkages, an amount of Nu 800mn has been provided in this release toward the transitional TSF.

Under this facility, the Pasakha Dry Port is being constructed, feasibility studies of Nganglam and Gelephu Dry Ports are being undertaken and the Bhutan Integrated Taxation System, one of the components of the flagship Digital Drukyul is being implemented, among others.

Further, to facilitate the government of Bhutan in implementing its development agenda, an amount of Nu 425mn has been provided out of the present release as a program grant.

The program grant facility is an untied grant in the form of direct budgetary support to the finances of the government. India has also authorized the export of wheat and sugar to Bhutan, as per Bhutan’s requirements, 5000MT of wheat and 10,000MT of sugar, to be imported by the Food Corporation of Bhutan Limited and other leading industries in Bhutan.

“Our close trade and economic ties are a reflection of the exceptionally close and friendly relations between India and Bhutan that has existed over decades. Given this special relationship, notwithstanding global supply chain disruptions and shortages of various commodities, India has decided to accommodate Bhutan’s special requests,” the press release from the Embassy of India states.

The press release states that going forward, the people and the government of India are resolute in their commitment to the equitable, inclusive and sustainable development of Bhutan in consonance with the principles of Gross National Happiness.

Yonten Thinley from Thimphu