Capital budget for Jan-Jun 2019 at 11 bn

The finance minister, Lyonpo Namgay Tshering presented the national budget for the financial year 2018-2019 during the ongoing parliament session on Friday. A total budget appropriation for FY 2018-19 has been estimated at Nu 47bn which includes budget of Nu 36 bn passed during the 11th session of the second parliament.

The main aspect is the addition of the new capital budget appropriation of Nu 11.380 bn for the period January-June 2019.

Of the total allocation of Nu 11 bn capital budget, Nu 10bn is for the capital expenditure. The rest Nu 713mn has been allocated for loan repayment and lending.

The total budget appropriation for FY 2018-2019 accounts for about 15.5 percent of the total outlay of the Nu. 310bn for the 12th FYP.

The break-up of the total budget appropriation of Nu 47bn for the FY 2018-19 constitutes Nu. 29bn for current, Nu,16bn for capital, lending at Nu 95mn, and Nu 2.47bn.

For the first year of the plan (FY2018-19), capital budget is 34percent of the total budget while current budget accounts for 61 percent, and rest 5 percent for repayment and lending.

Since most of the on-going or spill over projects are being implemented by the ministries, the ministerial sector will receive 49 percent of total allocation, Local government with about 26 percent followed by other agencies.

For the period of January- June, Ministry of Works and Human Settlement has been allocated the highest capital budget of Nu 2.367 bn for continuation of on-going road widening projects, and other infrastructural developments.

Ministry of Finance was allocated second highest of the capital budget of Nu 1.988 bn of which, Nu 407mn is for ad hoc or special priority and regular activities, Nu 974 mn for general reserves and Nu 606mn for subsidies, transfers and equities.

The Ministry of Health has been given Nu 442.9 mn to continue the construction of the 150 bedded Gyaltsuen Jetsun Pema Mother and Child Hospital. 40 bedded hospital in Dewathang, and procurement of other medical equipment.

The least capital budget for the FY 2018-19 was allocated to the foreign ministry of just about Nu 37mn which is mainly for on-going construction of staff quarters at New Delhi, and renovation and furnishing of Chancery office in New York.

The total resource estimated for the FY 2018-19 is Nu 39bn, which is an increase by Nu. 1.2bn from the initial estimate due to external grant receipt of Nu 3.1bn.

The domestic revenue has been revised to Nu 33bn, which is a decrease by Nu 1.9bn and this is due to delay in commissioning of Mangdechu and decrease in electricity production due to poor hydrology.

Of the projected Nu 33 bn domestic revenue, Nu 25bn will be tax revenue and Nu 8.9bn is non-tax revenue.

About Sonam Yangdon

Leave a Reply

Your email address will not be published. Required fields are marked *