The Government of India (GoI) has released Nu 23.283 billion (B) for Bhutan’s 13th Five Year Plan (FYP), representing 23.28 percent of its total commitment of Nu 100B. The update was presented in the National Assembly (NA) after Member of Parliament (MP) Rinchen Wangdi sought clarification on the status of Project Tied Assistance (PTA) and the Sustainable Development Programme (SDP).
Presenting the details, Finance Minister Lekey Dorji said that the 13th FYP has a total capital budget of Nu 245B, of which GoI has committed Nu 85B. This includes Nu 70B for PTA, Nu 5B for the Program Grant (PG), and Nu 10B for the Special/HICDP or Small Development Programme.
Progress on PTA Projects
A total of 71 PTA projects worth Nu 66.5B have been approved, comprising 53 new projects and 18 carried over from the 12th FYP. To date, GoI has disbursed Nu 7,288.962 million for PTA, of which the government has utilized Nu 6,056.39 million—83 percent of the funds received, and 9.11 percent of the total PTA allocation.
High Impact Community Development Projects (HICDP)
Under the first batch of HICDP projects—approved on December 4, 2024 and initially comprising 283 projects worth Nu 4,171.91 million—the minister said the initiatives span all 19 dzongkhags and three thromdes. They focus on improving drinking water, irrigation systems, last-mile road connectivity, chain-link fencing, and township development.
The first batch was later revised to 275 projects with an outlay of Nu 4,403.061 million. A second batch of 297 projects worth Nu 4,064.022 million was approved on September 18, 2025. GoI has so far released Nu 4,973.93 million for both batches.
As per GoI guidelines, 30 percent of the project cost is disbursed upon approval, 60 percent based on progress, and the final 10 percent upon completion.
Program Grant and Contingency Fund
Under the Nu 5B Program Grant, Nu 1.25B has been disbursed.
The minister clarified that the Nu 1B contingency fund—10 percent of the total SDP allocation—is a requirement set by GoI. The pooled fund is reserved for cost escalations or scope changes across the 572 HICDP projects and is not assigned to any specific project.
Economic Stimulus Programme (ESP)
Of the Nu 15B ESP allocation, GoI has released Nu 10B. A total of Nu 14,960.987 million has already been earmarked for implementing agencies and financial institutions. As of October 31, 2025, Nu 7,298.556 million has been spent, reflecting a utilization rate of 61.21 percent.
Concessional Credit
On concessional credit, the minister informed that a sum of Nu 3,300M is allocated. For that, 3,969 applications have been received, out of which 2,314 applications (Nu 3,109.6M) has been approved. The amount disbursed so far to the 2,171 beneficiaries stands at Nu 1,825.36M.
Business Reinvigoration Fund
A total of 278 applications were received, out of which 144 has been approved. Of the interest subsidy commitment of Nu 500.4M over 3 years, the subsidy released stood at Nu 92.09M as of June 2025.
“All applications under both schemes have been assessed, and BDBL continues phased disbursements based on project progress,” the minister informed the House.
Support to Farmers and Youth
Under the Price Guarantee Scheme, 1,927 farmers were supported to cultivate six priority crops—rice, maize, wheat, quinoa, peanut, and soybean—and 96 farmers were assisted in pork and poultry production.
Tourism development initiatives trained 2,319 individuals, including guides, frontline workers, local government officials, and homestay operators.
The DeSuung Skilling Programme trained 8,869 youth, while 20,500 DeSuups were deployed for national service activities. Sixty youth produced 150,000 fruit seedlings under the OGOP initiative.
The Youth Engagement and Livelihood Programme supported 114 interns for 1–6 months, while 1,148 youth were placed in various organizations for up to 12 months. Forty-five YouTubers received support to help Bhutan reach its target of 50 creators with over 100,000 subscribers. Fourteen informal sector beneficiaries received equipment and machinery support, and 78 cottage and small industries benefited from capacity-building programmes. Seventy-five participants completed Training of Trainers courses for business creation and counselling.
Education Loans and Insurance Scheme
As of September 25, 2025, the Bank of Bhutan received 548 applications for concessional education loans at 4 percent interest. A total of 476 applications amounting to Nu 348.85M were approved, and Nu 49M was disbursed to 454 students.
The ESP has also allocated Nu 800M to pilot a National Crop and Livestock Insurance Scheme, covering four crops—rice, maize, potato, and orange—and three livestock commodities: pigs, poultry, and cattle. Premiums will be shared equally between the government and farmers, with annual rates of 5.8% for crops, 10% for cattle, and 6% for piggery and poultry.
Nidup Lhamo
From Thimphu
