ESP committee members were questioned about delays in release of funds and regional disparity amongst others
The much-anticipated Public Hearing on the Economic Stimulus Plan (ESP) unfolded with a series of pressing questions raised on multiple fronts—from public awareness and the price guarantee scheme to fund disbursement, delays, and other critical implementation challenges. Harka Singh Tamang, a member of the Economic and Finance Committee, raised concerns over the limited public awareness of the price guarantee scheme. He questioned whether the government intends to expand the scheme beyond its current coverage of six agricultural and three meat products.
In response, Chencho, a member of the ESP Steering Committee, clarified that the core objective of the price guarantee scheme is to safeguard farmers and consumers by ensuring that the government pays a fair and equitable price. “Our responsibility is to ensure that both sellers and buyers benefit from the transaction,” he stated.
Addressing the possibility of expansion, Chencho affirmed that if the scheme proves effective, the government fully intends to include additional products in the future.
During the Public Hearing, Lhendup Wangdi, a member of the Economic and Finance Committee, questioned the Chief Executive Officer of the Bank of Bhutan (BoB), Dorji Kadin, on why the bank was not disbursing the Nu 2 billion Reinvigoration Fund (RGF). In response, the CEO clarified that the primary objective of the Economic Stimulus Plan (ESP) fund is to revitalize the economy.
He explained that before any funds from the RGF could be released, the bank needed to conduct thorough risk assessments to determine whether the applicants had the potential to recover and sustain their businesses. “It’s not that the bank is unwilling to support them,” he said, “but we must proceed with caution.”
Further into the session, Namgay Dorji directed a question to the President of the Bhutan Chamber of Commerce and Industry (BCCI), Tandy Wangchuk, asking whether he was satisfied with the current disbursement of the ESP funds. In reply, Tandy Wangchuk expressed dissatisfaction, stating that the private sector was not happy with the limited support being extended. “Only a few sectors have benefitted so far,” he noted, emphasizing that the broader private sector had placed its hopes on the ESP fund to help businesses recover and return to normal operations.
The President mentioned that it would be easier if the government could add Nu 9.7 billion as a long-term fund to the existing short-term fund of Nu 5.3 billion. This combined fund would provide better support for private businesses, helping them recover and grow.
Overall, the BCCI feels that the current support is not enough and that more funds should be added to help all sectors of the private industry. The suggestion to combine long-term and short-term funds aims to make it easier for businesses to access the financial help they need to stay afloat and develop in the future.
Chencho Norbu, owner of Norgu Light and a recipient of the ESP loan, shared his experience, stating that he had applied for the loan on October 23, 2024, and received the funds on January 15, 2025. He revealed that he had already intended to seek a loan even before the Economic Stimulus Plan (ESP) was formally announced. When the ESP fund became available, he saw it as a timely opportunity—a blessing—and decided to apply. Chencho submitted all the required documents, including his bank statements, market sources, and a detailed loan repayment plan, to strengthen his application.
In contrast, Sangay Dorji’s experience painted a different picture. His application—submitted to expand his mushroom business—was rejected by every bank he approached. Despite waiting several months, each rejection came without clear justification. In an attempt to increase his chances, Sangay even reduced the loan amount and applied to different banks. Yet, his proposals continued to be declined. The repeated rejections, despite his aspirations and the attractive low-interest rate offered by the ESP, left his dream of scaling up his mushroom venture in ruins.
The public consultations revealed that import-driven businesses were among the hardest hit during the pandemic and many are still struggling to recover. For instance, out of approximately 34,322 small business license holders, 26,567 are no longer operational. Similarly, among the 29,242 retail business license holders in the country, 14,980 have ceased operations. Furthermore, out of 2,223 registered retail businesses, 1,919 are no longer functioning.
MP of South Thimphu, Tsewang Rinzin questioned that despite being one of the most severely affected sectors during the pandemic, this category has not been included under the ESP. The Member of Parliament questioned the Bhutan Chamber of Commerce and Industry (BCCI) if this issue was raised with the government and the ESP Committee.
In response, the President of the Bhutan Chamber of Commerce and Industry (BCCI), Tandy Wangchuk, acknowledged the risk of rising non-performing loans (NPLs) under the Economic Stimulus Plan (ESP). “We’ve already seen instances of NPLs,” he said. To help mitigate this, he noted that Dzongkhag Development Business Committees have been established in all 20 districts to monitor implementation and report on ground realities.
Tandy Wangchuk also emphasized the need for stronger national oversight. “I believe it’s high time for the government to form a high-level economic committee to monitor and steer the country’s economic trajectory,” he added, referencing earlier consultations where this concern was raised with government counterparts.
On the issue of the exclusion of the trading sector from the ESP—raised by the South Thimphu Member of Parliament—the Finance Secretary clarified that the ESP is intended as a stimulus package, not a bailout scheme. She explained that the trading sector contributes limited value addition to overall economic development and offers fewer employment opportunities. “Moreover,” the Secretary added, “there is significant pressure on our foreign currency reserves from the trading sector, which makes its inclusion under the ESP difficult to justify.”
Gangzur Minjey MP, Loday Tsheten, noted that while the Economic Stimulus Plan (ESP) includes several promising initiatives—such as collateral-free loans at a 4% interest rate for new and expanding enterprises in agriculture, livestock, cottage industries, and manufacturing—it has also sparked concerns over perceived inequalities in its implementation. He highlighted that the plan’s Reinvigoration Fund, which offers interest subsidies to help businesses recover from the pandemic, has been met with public dissatisfaction. “There is growing concern about the fairness of the scheme,” he said. “Many are questioning whether it truly upholds the principle of equality when the benefits appear to vary so widely.”
In response, Chencho, a member of the ESP Steering Committee, clarified that the government has not issued grants to individuals thus far. “However,” he added, “a limited number of grants have been awarded to institutions whose proposals align with national priorities and demonstrate viable, profit-driven models.” He explained that these recipients are expected to operate under strict government guidelines. “For example,” he noted, “under the ESP, small grants have been provided to a select group of documentary filmmakers and YouTubers whose content contributes meaningfully to national discourse and public interest.”
Concerns were raised over the perceived imbalance in budget disbursement across districts under the 4% interest loan scheme. It was highlighted that members of the public have expressed dissatisfaction with the unequal allocation of funds, noting that while some districts received Nu 6 million, others were allocated only Nu 5 million. The MP questioned the rationale behind this apparent disparity in the distribution of the Economic Stimulus Plan (ESP) funds.
In response, the Chief Executive Officer of Bhutan Development Bank Limited (BDBL) clarified that there is no fixed ceiling for budget allocation per district. He explained that fund disbursement is determined by the volume and quality of applications received. “The allocation is demand-driven” she said. “Districts that received more funding did so because they had a higher number of eligible and well-prepared proposals.”
The decision to convene the public hearing was prompted by mounting concerns raised by both the public and the media regarding the implementation of the Economic Stimulus Plan (ESP). Key issues included limited access to the fund, a perceived lack of transparency, and questions surrounding the equitable distribution of resources across sectors and regions.
In light of these concerns, the hearing served as a critical platform for the Parliamentary Committee to engage directly with stakeholders—ranging from entrepreneurs and financial institutions to civil society representatives and government officials. It provided an opportunity to hear firsthand accounts of challenges faced in accessing the ESP, and to collect valuable insights into the fund’s reach and effectiveness on the ground.
The testimonies and feedback gathered during the session are expected to inform a comprehensive, evidence-based evaluation of the ESP’s execution. The ultimate goal is to identify gaps, ensure accountability, and recommend necessary reforms to enhance the program’s impact and inclusivity moving forward.
Nidup Lhamo and Sherab Dorji
From Thimphu
