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KP Sharma
Although time was limited for questions on the 13th Five-Year Plan presented by the Finance Minister at the National Committee, some lawmakers expressed concerns over the impact of the huge budget allocation and its associated risks, and called for unified allocation to achieve balanced development.
Prominent MP Tashi Wangyel said that although the government has submitted a huge budget, poor oversight poses a risk to the country and its economy. He warned that expansionary fiscal policy could have an adverse impact on monetary policy, foreign exchange reserves, money supply, deficits and inflation.
Tashi Wangyel added that increased imports could affect the economy, as it has happened in the past. He asked the minister about measures to mitigate these risks. “Although the government’s goals look promising, it has affected the people in the past and failed to benefit them,” he said.
Finance Minister Lekey Dorji acknowledged the concerns and assured that the Royal Monetary Authority (RMA) would monitor the situation.
He attributed the rising turnover in the civil service to inadequate salaries, which has led to a shortage of human resources. The minister stressed plans to increase import substitution through economic development, such as road construction and market access in rural areas, as well as fiscal incentives for the private sector.
He also stressed that the government’s goal is to maintain inflation between 4% and 5% to manage liquidity risks.
Prominent MP Phuntsho Rabten asked the minister whether the government had considered making a uniform allocation across all dzongkhags to achieve balanced regional development. He linked issues such as rural-urban migration and price differences to the imbalance in budget allocation.
Kencho Tshering, chairman of the national committee in Bumthang, noted the lack of budget for jobs in Gewog compared with Tsongkhapa and Trond, and said the funds would help curb unemployment.
“Gewogs are facing a huge unemployment problem and the budget allocation will help them curb unemployment,” he said.
In this regard, Lyonpo Lekey Dorji highlighted the challenges of unified budget allocation due to factors such as population ratio and size of dzongkhag.
He said plans were being made to create connectivity between neighbouring dzongkhags to maximise benefits.
Members also urged the government to provide easy access to finance for the rural population.
Due to time constraints, the Chair allocated an additional 10 minutes for discussion with the Minister of Finance, but it was still insufficient to cover the feedback from all National Committee members.
Budget expenditure during the 13th Five-Year Plan period was N512.28 billion, an increase of 63%, the highest level so far.
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