Sustainable Fiscal Planning
As Bhutan prepares to embark on the 13th Five-Year Plan (FYP), the recent revelation of the resource allocation for the fiscal year 2024-25 serves as a testament to the government’s commitment to responsible fiscal management and sustainable development.
In a move that reflects transparency and forward-thinking, the indicative preliminary revenue and expenditure framework for the 13th FYP has guided the determination of the resource envelope for the upcoming fiscal year. The allocation of Nu 30,002.900 million for capital expenditure and Nu 48,489.400 million for recurrent expenditure underscores a strategic approach to addressing the nation’s developmental needs.
Crucially, Bhutan’s decision to maintain the fiscal deficit for FY 2024-25 at 3% of the GDP, amounting to Nu 9,817.249 million, demonstrates a clear commitment to financial prudence. In a world where economic uncertainties are prevalent, Bhutan’s conservative fiscal strategy aims to strike a delicate balance between development goals and fiscal responsibility.
The decision to finance the anticipated fiscal deficit through a combination of external and domestic borrowings reflects a pragmatic approach. Bhutan, known for its sustainable policies, recognizes the need for strategic financing to meet the demands of development while ensuring long-term economic stability.
As the 13th FYP undergoes formulation and awaits formal approval, the early disclosure of the fiscal plan for the upcoming year provides a valuable insight into the government’s priorities. The emphasis on both capital and recurrent expenditures signals a comprehensive strategy that goes beyond mere economic growth – it speaks to the well-rounded development of the nation and the welfare of its citizens.
Bhutan’s commitment to responsible governance and sustainable development is commendable. The transparent and well-thought-out fiscal strategy not only instills confidence in the nation’s economic management but also sets a noteworthy example for others to follow. In a global context where fiscal discipline is often a challenge, Bhutan’s approach stands out as a beacon of prudence and vision.
As we anticipate the formal approval of the 13th FYP, the disclosed resource allocation for FY 2024-25 establishes a solid foundation for Bhutan’s journey towards holistic and sustainable development. It is a testament to the nation’s resilience, foresight, and unwavering dedication to building a future that not only thrives economically but also nurtures the well-being of its people.
Opinion
