National Assembly upholds original budget decisions and rejects National Council recommendation on PDF

The National Assembly (NA), on 24th June, rejected all recommendations from the National Council (NC) concerning the Budget Appropriation Bill for the fiscal year 2025–2026 and the Supplementary Budget Appropriation Bill for 2024–2025.

Among the key proposals dismissed was the NC Economic Affairs Committee’s recommendation to remove Nu 45 million (mn) allocated for the establishment of an international school. NC had suggested that such initiatives should be pursued by the private sector instead.

The NA also declined the recommendation to eliminate the Nu 94 mn Priority Development Fund (PDF), which would allocate Nu 2 mn to each constituency. The NC raised concerns that this allocation could undermine decentralisation, the separation of powers, and the conduct of free and fair elections. It further argued that funds allocated through the PDF might reduce resources meant for local governments or other planned activities under the 13th Five-Year-Plan.

The Chairperson of the Economic and Finance Committee and Member of Parliament from Bartsham-Shongphu, Rinchen Wangdi, stated that the committee reviewed all three recommendations in detail before rejecting them.

The NA further turned down the NC’s recommendation to revise the Supplementary Budget upward by Nu 1.5 billion (bn), which would have accounted for internal and external grants. It also rejected a proposed increase of Nu 0.484 mn in the recurrent budget for FY 2025–2026.

The Supplementary Budget Appropriation Bill for FY 2024–2025 was not re-deliberated, as the NC had endorsed it as originally proposed. Both Houses had earlier adopted a revision of the supplementary budget, increasing the total from Nu 97.63 bn to Nu 99.22 bn. This included Nu 174.87 mn in internal grants and Nu 1.41 bn in external grants and loans.

NA reaffirmed its original budget positions adopted on 13th June through a show-of-hands vote. The Bills will now be submitted to His Majesty The King for Royal Assent, following the legislative process.

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