The Bhutanese Leading the way.
In a decisive move to fortify food security and transform rural livelihoods, the government has unveiled a substantial Nu 12.88 billion (bn) allocation for the Renewable Natural Resources (RNR) sector in the FY 2026-27 budget.
This allocation forms a central part of the country’s broader goal of nearly doubling the primary sector’s GDP from Nu 31 bn to Nu 50 bn by 2029.
Modernising agriculture and boosting production
At the heart of this strategy is the Ministry of Agriculture and Livestock (MoAL), which receives Nu 1.61 bn.
The focus is shifting toward “high-value” production and commercialization.
Key investments include Nu 280 million (mn) for irrigation systems, along with funding to complete major farm infrastructure such as the Chirup farms in Samrang and Pemathang, and the Yarjugang Agriculture Commercial Farm.
A further Nu 140.7 mn has been set aside to strengthen domestic market linkages and digital marketing, while additional support will go toward expanding export opportunities and developing the Floriculture Centre of Excellence in Tsirang.
Recognizing the volatility of climate change, the budget introduces a safety net for those on the front lines.
Nu 76.6 million will fund the National Crop and Livestock Insurance Scheme, aiming to protect 500 beneficiaries through premium support and sensitization.
Bhutan’s commitment to environmental stewardship remains a lucrative pillar of the economy.
With Nu 590 million earmarked for sustainable forest management, the government is looking beyond conservation toward “result-based payments.”
The goal is to generate USD 20 million from carbon credits by June 2027. This initiative also targets a 25% reduction in forest fire damage and the promotion of timber exports and wildlife-based tourism, ensuring that the nation’s “High Forest Low Deforestation” status pays dividends for its citizens.
Climate resilience and risk protection
To address climate-related risks, Nu 76.6 mn is allocated for the National Crop and Livestock Insurance Scheme. The program aims to support around 500 beneficiaries through premium subsidies and awareness activities, helping farmers better manage production risks.
Forest economy and carbon markets
Sustainable forest management remains a key economic pillar, with Nu 590 mn allocated to the sector. The focus is shifting from conservation alone to result-based benefits, including carbon finance.
The government aims to generate USD 20 million in carbon credit revenue by June 2027. It also targets a 25 percent reduction in forest fire damage, while promoting timber exports and wildlife-based tourism, leveraging Bhutan’s “high forest, low deforestation” status for economic returns.
Innovation and resource planning
Further allocations include Nu 58.2 mn to complete a nationwide water resource inventory covering the remaining 14 dzongkhags, and Nu 24 mn for biodiversity conservation initiatives aimed at developing new nature-based products and revenue streams.
Overall, the budget signals a strong shift toward linking environmental stewardship with economic opportunity, positioning the RNR sector as a key driver of sustainable rural transformation.
