The appropriation is for a sum of not exceeding Nu 80,483mn including repayment and on-lending
With 38 members present and voting, the National Assembly (NA) adopted the Budget Appropriation Bill for the Financial Year (FY) 2021-22 for a sum not exceeding Nu 80,483mn yesterday.
After thorough deliberation in the House for two days, the NA has made the following amendments and adopted the Budget Appropriation Bill for the FY 2021-22.
The Budget Appropriation Bill includes a current expenditure of Nu 35,598mn, Nu 38,320mn capital expenditure, Nu 5,654mn for repayment, and Nu 909mn for on-lending.
Of the total budget, the finance ministry will take up the highest budget of Nu 21,347mn. The second highest budget of Nu 5,598mn will be used by Works and Human Settlement, while the third-highest budget of Nu 3,160mn will be used by Agriculture and Forests.
According to Finance Minister Namgay Tshering, the appropriation may change during the financial year due to changes in circumstances.
However, during the FY 2021-22, Social Services have been allocated with the highest budget allocation of Nu 24,524mn, constituting 30% of the total allocation followed by 11% to the RNR sector and 13% to public infrastructure.
In terms of functional allocation, central agencies have 66% and 34% for the Local Government.
However, considering the centrally executed activities amounting to Nu 6,460mn at the LG level, the actual share of LGs is estimated at 51% of the total allocation.
Besides the Bill, the NA also adopted the Supplementary Budget Appropriation Bill for the financial year 2021-22. A supplementary budget is an additional budget for development activities that are not included in the plan for the financial year.
As required by section 57 of the Public Finance (Amendment) Act 2012, the Supplementary Budget Appropriation Bill for FY 2020-21 amounting to Nu. 2,783mn is submitted to the House.
With the 37 members present, the House also adopted the Supplementary Budget Appropriation Bill for the Financial Year 2020-21 for a sum not exceeding Nu 2,783mn.
Finance Minister shared with the House that the Budget for FY 2021-22 has been formulated based on the theme of ensuring sustained economic stability for a resilient recovery.
As stated earlier, Lyonpo said that the budget for the FY 2021-22 reflects the outcome of the Mid-Term Review of the 12FYP and response to the COVID-19 pandemic, and it captures the essence of the Royal Kasho for Civil Service and Education Reforms and provides the budget to embark on the reform initiatives.
Meanwhile, the government will continue to invest in infrastructures to stimulate economic activities and encourage private sector participation.
“Road connectivity is critical for economic diversification and balanced regional development. Therefore, the government will continue investing in construction, maintenance, and blacktopping of roads,” said finance minister.
During the FY, the government will construct 36 Chiwog roads, 27 farm roads, blacktop 22 Gewog Centre Roads, and continue to improve existing farm roads (GSB and drainage).
According to the National Budget Report, the government will invest Nu 515mn for the construction and maintenance of irrigation channels, among others.
In FY 2021-22, Nu 2,975mn has been allocated for the development of housing and public amenities.
Kinley Yonten from Thimphu