Finance Minister says 1st year progress and implementation rate of 11th plan better than 10th plan

The 11th Five Year Plan’s first year works has been carried out as per the budget allocated, responded the Finance Minister, when the Upper House quizzed him on the status of the 11FYP on 3rd December.

Deputy Chairperson of National Council, Tshering Dorji raised his concern over Local governments facing problems on the non-availability of funds or lack of sufficient funds to execute the 11FYP plan works.

He also asked about the effectiveness of the implementation of the plan at the local levels which would help to improve the lives of people and also realize the goal of economic self-reliance.

Lyonpo Namgay Dorji said the, Government has not received Nu 666 mn of the 10FYP budget, thereby, impeding the implementation of new projects.

Lyonpo added that, the untimely receipt of the budget is the biggest hurdle for the implementation of plans, and as a result, the Government has to re-allocate the budget in local governments from the government budget.

Finance Minister, Lyonpo Namgay Dorji added that as per the plans, the spending for first year in 11FYP was at 15% but it reached up to 16.2%.

Comparing with the 10 FYP, Lyonpo Dorji said the total spending was Nu.31bn, 17bn for management and Nu.14bn for implementation of new activities which was carried out in the first year, 2008-2009. Thereby, it met only 88% of the total projected expenditure for first year.

For 11th FYP, 2013-2014, Lyonpo Dorji said, the first year spending reached Nu.37bn, which is 91% of the total expenditure.

Finance Minister, Lyonpo Dorji expressed, in terms of budget, the 11th FYP is Nu.65bn more or 40% than the previous 10th FYP.

In the 11th FYP, the total budget allocated is Nu.213bn, out of which Nu.121bn is for the management andNu.92bn for the implementation of new activities.

In 10th FYP, the total budget was at Nu.148mn, Nu.75bn for implementation of new projects and Nu.73bn for the management.

Lyonpo Dorji assured that there would problems in the first year, as the Government has to seek funds and do planning, estimating and designing. Lyonpo added that the major work will progress only from second and third year.

On the external aid front, Lyonpo Dorji said that 11th FYP Nu.58bn was committed as grant and with holding of Round Table Meeting it amounts at Nu.71bn, of which Nu.45bn committed by India.

Lyonpo compares, in 10FYP, Nu.48bn as the committed external grant and Government received Nu.62bn as grant at the end of the plan.

In addition, Lyonpo said that Nu.11bn (16%) of total grant has been received in the first year of 11FYP, of which 10bn from India.

While, talking on the level of fund disbursement to the local government for 11 FYP, Lyonpo Dorji said, Nu.25bn has been allocated for 20 Dzongkhag and 205 Gewog and for four Thromde.

To successfully implement the plan works, Lyonpo Dorji said the limited budget, and untimely receive of grants, conflict between the development activities and environment protection and timely service delivery by the public servants are the main impediments.