GDP: The country’s economy rebounded from all time low of 2.05 percent in 2013 to 6.08 percent as of 2014.
The economic affairs minister, Norbu Wangchuk said the economy is showing signs of improvement with lifting of the restriction credit restrictions.
He said that commercial borrowing has shot up from Nu 45B in 2013 to Nu 55B.
The government’s injection of Nu 2.1B under the Economic Stimulus Plan (ESP) into the economy through the financial institutions improved the capital adequacy ratio and financial sector liquidity which facilitated lending and the financial sector
The INR shortage, which was severe in the past, he said, has been solved to some extent. With INR 10.7B of rupee reserve, he said the country has reserves enough to trade.
In terms of foreign currency reserves, Lyonpo said it has grown from USD 770M to USD 834M in the last few years.
The country witnessed 11,218 new registrations of small and medium enterprises (SME) and retail traders since 2013.
To stack on to these economic progresses, the 126MW Dagachhu came on line. Except of Punatshangchhu I, Lyonpo said other projects are well on track.
On the policy front, Lyonpo talked of the revision in Economic development Policy, FDI policy and mineral development policy, besides the amendment of Companies Act and passing of the enterprise registration Bill.
During the mid term review of the economic affairs ministry on Friday, Lyonpo said that of the five jewels of the economy identified, three directly falls under the purview of the ministry.
Hydropower, mining and small and middle scale enterprises or SMEs contributed 25 percent of the national revenue in last fiscal year. Including the manufacturing industries, the contribution to the national exchequer would amount to 50 percent of the total, he said.
Prime Minister said the total budget allocated for the current Plan is 46 percent more than the last planned period. “So, the opportunity and developmental works should be 46 percent more than the 10th Plan,” he said.
The Prime minister assured that there wont be problem in getting the funds and urged the civil servant to implement the tasks efficiently, albeit the annual performance agreement to ensure smooth implementation.
Mining constitutes 2.8 percent of the GDP, manufacturing 8.12 percent, water and electricity constitutes 14.15 percent. About 7 percent of the GDP constitutes trade and 1.7 percent restaurants and hotels.
In the medium term, the economy is projected to grow at an average of 6.6 percent. The growth is expected to be underpinned by the construction of hydropower projects and expansion of service sector.
In the FY 2017-18, the economy is projected to grow by 7.8 percent. This high growth rate is primarily due to partial commissioning of Punatsangchhu-II and Mangdechhu projects.