𝐈𝐧𝐝𝐢𝐚’𝐬 𝐍𝐮 𝟏𝟎𝟎 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐏𝐥𝐞𝐝𝐠𝐞 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐬 𝐁𝐡𝐮𝐭𝐚𝐧-𝐈𝐧𝐝𝐢𝐚 𝐏𝐚𝐫𝐭𝐧𝐞𝐫𝐬𝐡𝐢𝐩

…𝑩𝒉𝒖𝒕𝒂𝒏 𝒕𝒐 𝑹𝒆𝒄𝒆𝒊𝒗𝒆 𝑵𝒖 40 𝑩𝒊𝒍𝒍𝒊𝒐𝒏 𝒊𝒏 𝑪𝒂𝒑𝒊𝒕𝒂𝒍 𝑭𝒖𝒏𝒅𝒊𝒏𝒈 𝒇𝒓𝒐𝒎 𝑶𝒕𝒉𝒆𝒓 𝑫𝒆𝒗𝒆𝒍𝒐𝒑𝒎𝒆𝒏𝒕 𝑷𝒂𝒓𝒕𝒏𝒆𝒓𝒔

By Lhendup Wangmo

The Government of India (GoI) has approved 61 Project Tied Assistance (PTA) projects under Bhutan’s 13th Five-Year Plan, with an initial tranche of Ngultrum (Nu) 49,578.75 million already released.

Finance Minister Lekey Dorji shared the update during the National Assembly session on Monday, highlighting that Bhutan has already received Nu 1,796.46 million between July and November 2024. More disbursements are expected in the coming months.

In addition to PTA funds, the GoI has committed a program grant of Nu 5 billion, distributed in quarterly installments of Nu 250 million. The first three installments for July, August, and September have already been received.
The update came in response to a question from Bartsham-Shongphu MP, Rinchen Wangdi, who sought clarity on the total PTA funds received, the number of approved projects, and the status of the Small Development Projects (SDP) grant.

Lyonpo Lekey Dorji assured the Assembly that while there have been delays in SDP fund disbursements, the funds are expected soon. Of the Nu 10 billion allocated for SDP, Nu 7 billion is designated for Gewogs, while Nu 1.5 billion will support Thromdes and Dzongkhags.

Currently, 279 SDP projects have been approved, following consultations with local MPs and authorities. For the first tranche, covering 2024-2026, Bhutan has requested Nu 4.2 billion in funding from India.

“We are hopeful that India will approve the remaining funds, and work on these projects will commence by December this year,” Lyonpo Dorji said.

Responding to further inquiries, Lyonpo Dorji disclosed that Bhutan received Nu 2,186.44 million from other development partners between July and October 2024.

The total budget for Bhutan’s 13th Plan is Nu 512 billion, with Nu 267 billion allocated for recurrent expenditures and Nu 245 billion for capital works. As mandated by Article 14(6) of the Constitution, recurrent expenditures will be covered by domestic revenue, which is projected at Nu 331 billion. The resulting surplus of Nu 64 billion will support capital projects.

India has pledged a total of Nu 100 billion towards Bhutan’s capital works under the 13th Plan, reflecting the strong bilateral partnership between the two nations. This commitment includes Nu 70 billion allocated for Project Tied Assistance (PTA) projects, Nu 10 billion for Small Development Projects (SDP), Nu 5 billion in program grants, and Nu 15 billion dedicated to the Economic Stimulus Plan. These contributions aim to support Bhutan’s developmental priorities, enhance infrastructure, and boost economic resilience during the plan period.

Bhutan is also anticipating an additional Nu 40 billion in capital funding from other development partners to meet its 13th Plan goals.