𝐄𝐃𝐈𝐓𝐎𝐑𝐈𝐀𝐋- 𝐁𝐚𝐥𝐚𝐧𝐜𝐢𝐧𝐠 𝐁𝐡𝐮𝐭𝐚𝐧’𝐬 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐜 𝐒𝐭𝐢𝐦𝐮𝐥𝐮𝐬 𝐏𝐫𝐨𝐠𝐫𝐚𝐦 𝐀𝐦𝐢𝐝 𝐇𝐮𝐫𝐝𝐥𝐞𝐬 𝐈𝐧 𝐀𝐜𝐜𝐞𝐬𝐬𝐢𝐛𝐢𝐥𝐢𝐭𝐲 𝐀𝐧𝐝 𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲

Bhutan’s recently launched Economic Stimulus Programme (ESP) is aimed at providing concessional loans to businesses struggling in the wake of economic downturns. While the program is seen as a much-needed financial relief, it has sparked mixed reactions. Many welcome the financial support, but others criticize the bureaucratic hurdles that slow down the process, leaving some businesses unable to access the loans quickly enough.

The ESP’s key objective is to stimulate Bhutan’s economy by providing affordable financial aid to businesses affected by the pandemic and economic slowdown. With concessional loans at just 4% interest, the program offers much-needed relief, particularly for small businesses and startups. By lowering the cost of credit, the ESP encourages businesses to invest in growth, which in turn supports job creation and overall economic recovery. This initiative is particularly beneficial to key sectors such as agriculture, tourism, and small-scale manufacturing, which are critical for sustaining livelihoods and boosting local industries.

In addition to financial relief, the program emphasizes accountability. The requirement for project reports, environmental clearances, and technical assessments ensures that funds are allocated wisely. This oversight is aimed at preventing misuse of loans and guarantees that only businesses with viable plans will benefit from the funds. As a result, the ESP not only supports immediate economic needs but also lays the foundation for long-term growth by helping businesses that are sustainable and capable of contributing to Bhutan’s future.

Moreover, the program aligns Bhutan’s economic recovery with its environmental goals. The inclusion of environmental clearances in the loan application process ensures that economic growth does not come at the cost of environmental degradation. This is particularly important in Bhutan, where environmental conservation is deeply tied to the country’s overall development philosophy of Gross National Happiness.

Despite its positive intentions, the ESP has been criticized for being overly bureaucratic. The extensive paperwork required, such as detailed project reports and multiple clearances has been a significant challenge for many businesses. Small businesses, which often lack the administrative capacity to meet these requirements, may find themselves excluded from the program. As a result, some argue that the ESP may disproportionately favor larger companies or those with the resources to navigate the red tape.

Another major concern is the slow pace of the loan approval process. In an economic environment where businesses require quick access to funds, delays in securing loans can lead to dire consequences. Particularly in sectors like agriculture, where timely investments are crucial, slow approvals may prevent businesses from fully benefiting from the program.

There are also concerns about the equitable distribution of funds. Some business owners fear that the program might favour well-connected individuals, leaving smaller or rural businesses behind. This perception of potential favouritism risks undermining the program’s credibility and reducing trust in the government’s ability to administer the funds fairly.

The challenge for Bhutan’s government is to balance accountability with accessibility. While it is necessary to ensure that public funds are spent responsibly, the application process should not be so complex that it discourages participation. Simplifying documentation requirements, offering support for small businesses, and streamlining the approval process could enhance the program’s effectiveness.