The Bhutanese Leading the way.
The Economic and Finance Committee of the National Assembly held a high powered hearing on various issues around the Economic Stimulus Plan (ESP).
Though this is not the first time that hearings are being held this is the first time that it was done at such a high level with senior officials and stakeholders called as witnesses and the press also invited.
The open nature of such a hearing maybe the norm in other democracies, but it was a unique experience in Bhutan.
Here it must be said that the MPs did well in asking questions raised by constituents across the country, while the officials also did a good job of answering them.
Some sparks did fly but that was in the passion of the discussion and there were no ego clashes.
The hearing represents yet another moment and example of a Parliament which has been maturing with each tenure and taking in power and also exercising its functions.
A consistent theme that came out in the ESP meeting was the dire state of the private sector and what if more could have been done with the ESP in better alleviating the condition of the private sector.
There was almost an air of dissatisfaction in MPs from both the ruling and opposition as well as the BCCI President that the ESP was not having the desired impact of stimulating the economy and perhaps large portions of it was duplicating programs already in the 13th plan.
It is now up to the government to show that the ESP will have a major impact as it rolls out the various programs under ESP.
Another common theme coming out was the feeling that there was lack of adequate information and too much red tape in getting loans. It was telling that a promising mushroom farmer did not get a Nu 1 mn loan while an established businessman did based on his business strength.
Given that all the ESP money has to be given back to the government the FIs have been playing it safe.
On the other hand, the ESP was handled in a stricter manner given the misuse of the past.
There is also growing concern on the burgeoning NPLs and loan deferrals which come to a total of Nu 55 bn.
It is hoped that a combination of the ESP, policy measures, monetary and fiscal measures can help address the above.
“Love locally, trade globally.” – Russ Roberts