Govt aims at 8% growth rate

In response to a question on how Bhutan would become a developed country by 2034 with a projected growth rate of 3.9% this fiscal year, 6.5% in 2025 and 2026 and 4% in 2027 and 2028 when the required rate is 10% the Finance Minister Lekey Dorji said the aim is to go for 8% growth rate.

The minister said this would be made possible with the multiplier effect leading to an average growth rate of 8% in five years.

He said if Bhutan went by the past GDP growth rates then Bhutan could take 20 more years to become developed.

The minister said this can be done using things like the Economic Stimulus Program of Nu 15 bn and going for low hanging fruits like tourism with the aim to get 300,000 tourists a year.

He said one of the first executive orders was to Bhutan’s foreign embassies and missions to encourage tourists to go to Bhutan. Lyonpo said the tourists would have a multiplier effect on airlines, hotels, restaurants.

He said most importantly the 13th plan is Nu 512 bn with India giving Nu 85 bn as grant. He said they will discuss and work on the plan which has a significant amount of Nu 250 bn budget for capital works. He said the target to make agriculture worth Nu 50 bn by 2029 will also help.

The minister said that there will also be contributions by heavy industries and cottage and small industries.

Lyonpo said the aim is also to get Nu 100 bn in FDI investments. He said outside the plan Nu 310 bn has been kept for the 600 MW Kholongchu project, 1125 MW Dorjilung project, 770 MW Chamkarchu project, 443 MW Nyera Amari projects and others.

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