I n spite of generating huge tariff from the hydro power plants as well as receiving handsome grants from the neighboring countries, the country is still suffocating in managing its financial accounts.
It’s all happening due to the failure of managing the capital accounts together with current accounts for the nation.
The Ministry Of Finance is still unable to tackle the issues of the balance of payments in the country. Bhutan is flooded with qualified personal with MBAs and degrees from world class recognized Institutions, but even after having so many right people in the management, the country is still not able to understand the rupee crunch issues as well as its management.
We all know that balance of payment data monitors all international monetary transactions at a specific period of time i.e. every quarter and every calendar year in order to determine how much money is going in and out of the country.
If a country has received money this is known as a credit and if a country has paid or given money, the transaction is counted as a debit which means that Balance Of Payment should be zero meaning that assets (credits) and liabilities (debits) should be balanced, but in practice this is not happening in Bhutan.
This Balance of Payment can tell the public whether a country has deficit or a surplus and from which part of the economy the discrepancies are stemming. Therefore, the Ministry of finance must look into the scenario once again by guiding the central bank and review the consequences for the betterment of the nation.
With the guidance and supports of the Ministry of Economic Affairs ourprivate entrepreneurs should be encouraged to start launching self sustained projects like tooth pick plants and that of egg tray productions in the country instead of depending on other countries even for such small amenities which can been installed without much problem because there is already alarming demand in the country if we look at the situations attentively. As such I would like to suggest that the Ministry of Economic Affairs should look into it more closely for the betterment of the nation and eliminate the rupee crunch in the country.
In the current situation there seems to be a lot of policies, plans and programs to deal with the issue which are all welcome but as always come implementation time and it becomes a different story.
The PDP government was elected to fix the economy and we are hopeful that it will do so but as off now not much is happening and not even the basic issues are being addressed.