The Bhutanese Leading the way.
The Economic Stimulus Plan (ESP) has been introduced to support various sectors of the economy through financial aid, concessional loans, and fiscal measures. The plan focuses on helping women and youth entrepreneurs, farmers, small industries, and key industries such as tourism, film, and construction. This is also largely in line with PDP’s manifesto pledge on the sectoral supports for ESP.
Support for women entrepreneurs
Women entrepreneurs can access concessional loans through Bhutan Development Bank Limited (BDBL). These loans support agriculture, livestock, and the upscaling of startups in Cottage and Small Industries (CSIs) and medium industries.
In addition, fiscal measures provide investment support in various sectors. These include agriculture and livestock production, tourism development, startup and entrepreneurship development, creative industries, and small-scale businesses. Capacity-building programs are also included for different industries.
Support for youth entrepreneurs
Youth entrepreneurs can also access concessional loans through BDBL to expand their businesses.
Other fiscal measures include startup bootcamps in Zhemgang and Student Business Seedling Programs in Thimphu, Mongar, and Sarpang. Infrastructure projects, such as the development of an Event Shed and Startup Centre at Changzamtog, are in progress. The DeSuung Skilling Program (DSP) also receives support, providing entrepreneurship training and financial aid to DeSuups who complete skill development programs.
Support for farmers
Farmers can apply for concessional loans through BDBL for agriculture and livestock activities, such as crop cultivation, poultry farming, piggery, and dairy production. So far, 990 applicants have been approved for loans of up to Nu 1 million.
A Price Guarantee Scheme (PGS) is also in place. Under this scheme, two state-owned enterprises (FMCL and BLDCL) buy six priority crops and three livestock products from farmers at prices above the market rate. These enterprises process and sell the products at lower prices to consumers, with subsidies provided if the production cost exceeds the revenue.
Support for Cottage and Small Industries (CSIs)
CSIs can access concessional loans through BDBL, with 93 new CSI applications approved and 21 existing startups receiving funding for expansion.
Fiscal measures include support for equipment and machinery for informal businesses, capacity-building programs for agro-based CSIs, and food processing training for 60 CSIs.
Support for the Film and Entertainment Industry
Filmmakers and producers can apply for concessional loans through BDBL for movie production. One film has already received funding.
Other fiscal measures include funding for two drama productions, training for film and music producers, and infrastructure projects such as cinema hall construction in Bajo and Samdrup Jongkhar. The Bhutan National Film Awards were held in February 2025, and grants were awarded to six filmmakers. Financial support was also provided for attending international film festivals.
Support for the Construction Sector
There is no direct funding for the construction sector under ESP. However, the sector is expected to benefit from various infrastructure development projects, including cinema halls, arts and crafts outlets, integrated roadside stations, tourism product development, and startup centers.
Support for the IT Sector
ESP does not include initiatives for digital infrastructure and cybersecurity, as these are covered under the 13th Five-Year Plan. However, IT startups can participate in bootcamps and access concessional loans of up to Nu 10 million for business expansion.
Support for the Tourism Sector
The tourism sector benefits from fiscal measures implemented by the Department of Tourism (DoTr) and the Department of Media, Creative Industry, and Intellectual Property (DOMCIIP).
Initiatives include roadshows in India, training for frontline officials, eco-tourism promotions, feasibility studies for boating activities, and craft market development. Other projects, such as product development and diversification, are planned for the coming months.
Support for hotels and restaurants
Hotels and restaurants are not eligible for concessional loans or reinvigoration funds under ESP. However, the DoTr has conducted compliance monitoring for 73 three-star hotels.
Support for the public transport sector
ESP does not provide direct support such as fuel subsidies or fleet modernization for public transport businesses. However, businesses impacted by COVID-19 that have the potential to recover can apply for the Business Reinvigoration Fund. This offers a 4% interest subsidy on existing or top-up loans for up to three years.
