The Bhutanese Leading the way.
The Ambassador of India to Bhutan, Sandeep Arya, handed over a cheque of Nu 2.5 billion (bn) as the fourth tranche of the Economic Stimulus Programme (ESP) fund to the Minister of Finance, Lekey Dorji, on 1st October.
On behalf of the Royal Government of Bhutan (RGoB), Lyonpo Lekey Dorji expressed gratitude to the Government of India (GoI) for the timely release of the tranche. With this, India has released Nu 10 bn of the Nu 15 bn committed for the ESP to date.
The ESP was launched on 18th May 2024, by the Prime Minister (PM) to address economic challenges brought about by the pandemic and to revive priority sectors. Supported by GoI with a funding commitment of Nu 15 billion, the program is being implemented through two measures.
First, fiscal interventions include support to agencies in agriculture and livestock, tourism development, cottage and small industries, creative industry, youth employment, education and human resources, the One Gewog One Product initiative, and the De-Suung Skilling Program. Second, monetary interventions are provided through concessional credit lines and reinvigoration funds disbursed through participating financial institutions.
Since its launch, about Nu 6.5 bn has been released to RGoB agencies and Financial Institutions (FIs) for ESP initiatives. The remaining Nu 1 bn is being released in this financial year (2025–26) to support crop and livestock insurance (Nu 800 million) and additional concessional credits (Nu 243 million). The newly released Nu 2.5 bn will further support key ESP activities in sectors such as agriculture and livestock development, tourism, creative industry, youth employment and education, cottage and small industries, the One Gewog One Product initiative, the De-Suung Skilling Program, and concessional credit lines.
Ambassador Arya said India is pleased to partner with the RGoB in achieving its goals and the 13th Five-Year Plan (FYP) through various measures, including assistance projects, program grants, and the ESP. He noted that out of the Nu 15 bn ESP support committed for 2024–2029, around Nu 10 bn has already been released two-thirds of the total support. In addition, 22 percent of the Nu 100 bn committed for the 13th FYP has been released over the last two years. Recalling the visit of the Prime Minister of India, Shri Narendra Modi, last year, Ambassador Arya recounted India’s continued assurance to stand with Bhutan in making Brand Bhutan and Bhutan Believe successful.
Lyonpo Lekey Dorji said the concessional credit is focused on production and manufacturing to elevate the current account balance through projects in primary agriculture and livestock, with loan sizes up to Nu 1 million (mn), and cottage and small industry projects ranging from Nu. 1 mn to Nu 10 mn. He reported that out of the total Nu 10 bn received so far, Nu 6.5 bn was released to FIs and various sectors in the last financial year, while the balance Nu 1 bn is being allocated this year for additional concessional credits (Nu 242.79 mn for primary agriculture and livestock) and for the implementation of crop and livestock insurance (Nu 800 mn) by the Ministry of Agriculture and Livestock.
Lyonpo further stated that close to Nu 8.348 bn has been allocated for the implementation of ESP activities in the current financial year.
