The country’s economic sector agencies are showing uneven spending performance midway through the 13th Five-Year Plan (FYP), with overall utilization remaining modest despite stronger absorption of approved annual budgets, according to the latest Mid-Term Review (MTR) of the Ministry of Industry, Commerce and Employment (MoICE).
The review indicates that only 31.83% of the Ministry’s total 13FYP outlay—Nu 10,536.71 million (M)—has been spent so far. However, when measured against the approved budgets for the current two financial years (2024–2026), agencies have utilized a comparatively stronger 63.38%.
Among departments, the Department of Employment and Entrepreneurship has recorded moderate progress, utilizing 59.4% of its total outlay and 57.96% of its approved budget. The figures suggest relatively steady implementation of employment-related programmes, although the pace calls for the need to accelerate to meet growing job creation demands.
The Department of Industry—one of the largest recipients of the plan outlay with Nu 3,549.63M—has utilized only 30.36% of its total allocation. Despite this, it has spent 73.42% of its approved budget for the current fiscal period, indicating that while recent implementation has improved, earlier delays continue to weigh on overall performance.
The Department of Labour has 7.75 percent of its total plan outlay utilized. However, it has absorbed 75.14% of its approved budget, meaning that while current programmes are being executed, the scale or rollout of longer-term initiatives remains limited.
The Department of Media, Creative Industry and Intellectual Property (DoMCIIP) has utilized over half of both its total outlay (54.25%) and approved budget (54.23%). This balanced performance is attributed to steady progress in promoting creative industries and intellectual property frameworks.
Tourism, a sector vital to Bhutan’s economy, shows slower recovery in spending terms. The Department of Tourism has utilized 20.89% of its total outlay, although it has achieved 54.81% utilisation of its approved budget. While this reflects gradual resumption of activities following pandemic disruptions, the relatively low overall spending underscores the sector’s cautious rebound and the need for sustained investment to revitalize high-value tourism.
Similarly, the Department of Trade utilized 28% of its total outlay and 60.03% of its approved budget. Among regulatory and autonomous bodies, performance is mixed but generally stronger in terms of budget absorption. The Bhutan InfoComm and Media Authority (BICMA) utilized 39.19% of its outlay and 62.97% of its approved budget.
According to the review, the Bhutan Standards Bureau (BSB) stands out as one of the strongest performers, with 69.85% utilization of its total outlay and an impressive 86.53% of its approved budget, indicating effective implementation of standards and quality infrastructure programmes.
The Competition and Consumer Affairs Authority (CCAA) has also demonstrated solid progress, utilizing 64.3% of its outlay and 78.35% of its approved budget. Its performance suggests active enforcement of market regulations and consumer protection measures which are crucial for maintaining fair competition in a small and evolving economy.
In contrast, the Corporate Regulatory Authority (CRA) has recorded the lowest utilization of total outlay at just 3.84 percent, despite spending 75.2% of its approved budget.
An official from the finance ministry commented that the MTR highlighted a recurring pattern across agencies, where relatively high utilization of annual budgets is prevalent alongside low cumulative plan spending. He suggested that while financial management at the yearly level is improving, deeper structural and procedural bottlenecks continue to hinder long-term execution.
“Delays in project initiation, procurement challenges, capacity constraints, and shifting policy priorities may all be contributing factors,” the official implied.
He emphasized that the findings come at a time when Bhutan is navigating a complex economic landscape marked by fiscal tightening, external vulnerabilities, and the need to stimulate domestic growth.
“Efficient and timely utilisation of plan resources will be critical to achieving the 13FYP’s objectives, which include economic diversification, private sector development, and job creation.”
The official went on to say that as the plan period progresses, the focus is likely to shift towards accelerating implementation, improving inter-agency coordination, and addressing systemic constraints that slow down project delivery. “Without such measures, the gap between planned targets and actual outcomes could widen, potentially undermining the broader goals of sustainable and inclusive economic development,” he noted.
Tashi Namgyal, Thimphu
