𝐁𝐡𝐮𝐭𝐚𝐧 𝐒𝐞𝐭𝐬 𝐒𝐢𝐠𝐡𝐭𝐬 𝐨𝐧 𝐌𝐚𝐣𝐨𝐫 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 𝐰𝐢𝐭𝐡 𝟏𝟑𝐭𝐡 𝐅𝐢𝐯𝐞 𝐘𝐞𝐚𝐫 𝐏𝐥𝐚𝐧

…𝐍𝐮. 𝟓𝟏𝟐 𝐁𝐢𝐥𝐥𝐢𝐨𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐢𝐦𝐬 𝐟𝐨𝐫 𝐍𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭, 𝐅𝐨𝐜𝐮𝐬𝐢𝐧𝐠 𝐨𝐧 𝐇𝐞𝐚𝐥𝐭𝐡, 𝐄𝐝𝐮𝐜𝐚𝐭𝐢𝐨𝐧, 𝐚𝐧𝐝 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞

By Sonam Choki

In a decisive move towards national progress, Bhutan has unveiled its ambitious 13th Five Year Plan, signaling a strategic leap forward under its new leadership. With a staggering Nu. 512 billion investment, this comprehensive initiative aims to bolster economic growth, strengthen healthcare and education systems, and fortify critical infrastructure, setting a robust foundation for Bhutan’s future development trajectory.

The successful conclusion of Bhutan’s fourth parliamentary elections and the formation of a new government marks a significant milestone, ushering in the implementation of the first year of the ambitious 13th Five Year Plan (13th FYP) and Economic Stimulus Programme (ESP) for a better Drukyul. This transition provides opportunities to align the plan and policies of the government with the overall national priorities and aspirations of its citizens.

The 13th FYP has been approved with an outlay of Nu. 512 billion to pursue the overarching goal of a Developed Bhutan by 2034, with a strong focus on People, Progress, and Prosperity. With renewed hope, optimism, and confidence placed on the newly elected government by the Bhutanese people, the Royal Government of Bhutan remains committed to consolidating various interventions initiated in the past and continuing efforts towards stimulating growth and building a more resilient society.

In keeping with the People’s Democratic Party’s pledge to revive the economy, the government has constituted an 11-member Economic Development Board (EDB) under the Prime Minister. The EDB aims to create a vibrant business ecosystem to unleash the growth potential of existing economic sectors and tap into new opportunities.
The economy is projected to grow at 6.3 percent in 2024 and 8.9 percent in 2025, driven by the anticipated commissioning of the Punatsangchu II hydropower project, expansion in the manufacturing sector, and the stimulative effect of the Economic Stimulus Programme. The budget for the financial year 2024-25 aims to ensure strategic investment of resources to achieve the key performance areas identified in the 13th FYP and efficiently utilize them to lay the foundation for a healthy, prosperous, and secure Bhutan.

Total expenditure is estimated at Nu. 89,154.218 million, with a recurrent allocation of Nu. 50,809.905 million and a capital allocation of Nu. 38,344.313 million, constituting 57 percent and 43 percent of the total expenditure, respectively. Of the total capital expenditure, about 43.1 percent is financed through grants, 41.6 percent through borrowings, and 15.3 percent through surplus generated from internal resources.

The health sector aims to enhance the health and wellbeing of the Bhutanese people through the Healthy Drukyul Program, striving to achieve Universal Health Coverage (UHC). Key performance indicators (KPIs) include sustaining ambulance service turnaround time to 10 minutes or less, increasing the percentage of functional critical medical equipment in hospitals, improving health service coverage and behavior index, and enhancing the availability of essential medicines.

The education sector seeks to enhance equitable access to quality education and lifelong learning by ensuring competent professionals, safe institutions, modern facilities, and relevant curricula and assessments. Major KPIs include increasing ECCD enrollment, creating safe learning environments, aligning the school curriculum to international standards, and improving access to quality tertiary institutions.

The RNR sector investment is expected to increase the Gross domestic product (GDP) contribution from agriculture and livestock from Nu. 27 billion in 2022 to Nu. 50 billion by 2029, focusing on high-value production, large-scale commercial farming, and enhanced support for subsistence farming. Key targets include achieving rice self-sufficiency, increasing the production of high-value fruits, nuts, and potatoes, and enhancing chili self-sufficiency.
The connectivity sector aims to expand transport infrastructure to support economic development and improve connectivity, with KPIs focused on reducing travel time on national highways, meeting international aviation standards, and enhancing air connectivity.

The mining and manufacturing sectors aim to increase GDP output and improve the business ecosystem. Key targets include operationalizing dry ports, developing industrial parks, increasing the tourism sector’s GDP contribution, and raising the overall employment rate to 97.5 percent.
The energy sector focuses on enhancing productivity, diversifying markets and products, and driving sustainable economic growth. Major KPIs include increasing renewable energy generation capacity, boosting revenue from forest-based enterprises and ecotourism, and increasing private sector investment.

The technology sector aims to strengthen Bhutan’s digital ecosystem, with KPIs targeting increased GDP output from digital technology, expanding rural network connectivity, and improving citizen satisfaction with online services.
The religion and culture sector aims to preserve Bhutan’s identity and enhance its international standing, with KPIs focused on increasing the sense of community belonging and maintaining the importance of Bhutanese values and conduct.

As of March 31, 2024, Bhutan’s public debt stood at Nu. 293,089.459 million, accounting for 109.8 percent of the FY 2023-24 GDP estimate. The debt comprises Nu. 261,122.837 million in external debt and Nu. 31,966.622 million in domestic debt. The majority of external debt is for hydropower projects, with hydropower debt constituting 64.1 percent of total external debt. The Central Government’s debt is within the threshold set by the Public Debt Management Policy 2023, standing at Nu. 107,310.390 million, constituting 36.6 percent of total public debt and 40.2 percent of estimated GDP.

As Bhutan charts its course with the 13th Five Year Plan, the nation stands at the threshold of transformative change. With a steadfast commitment to prosperity and well-being, coupled with strategic investments and visionary policies, Bhutan is poised to navigate challenges and harness opportunities, ensuring a sustainable and prosperous future for generations to come.