Fiscal deficit could go above Nu 40 bn

The Nu 310 bn 12th plan has a shortfall of Nu 29 bn. However, the Prime Minister, Lyonchhen (Dr) Lotay Tshering said that given that some pledges were not yet in the plan the fiscal deficit could go as high as Nu 40 bn in the 12th plan.

Lyonchhen said even the nu 310 bn plan is just an outlay and the entire plan size will increase above Nu 330 bn.

On the fiscal deficit the PM shared that major pledges like maternity allowance, new national referral hospital, WIFI, ultra sound and endoscopy in every Dzongkhag etc. were not even in the plan yet. He said that a few billions would go there itself.

The Finance Minister Lyonpo Namgay Tshering said that of the current 29 bn shortfall around Nu 4 bn would be taken in concessional low interest loans from the World Bank, IFAT and ADB and the remaining 25 bn would be secured through domestic borrowing from financial institutions.

The prime minister said that as the plan goes along Bhutan will seek and get additional support from donors and agencies.

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