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COUNTRY BACKGROUND - Gross National Happiness Commission

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Figure 2.2<br />

Economic Performance<br />

IV. Government Expenditure and Revenues during the 6FYPIV. Government<br />

Expenditure and Revenues during the 6FYP<br />

Allocation of ExpendituresAllocation of Expenditures<br />

2.12 The sectoral allocation of expenditure reflected the priority accorded to the productive sectors, in<br />

comparison to the social service sector.<br />

(a) Agriculture received the largest share of the budget at 18%.<br />

(b) Power and Trade and Industries received the second and third largest shares at 13.1% and 13.3%<br />

respectively.<br />

(c) The Social Services sectors received considerably smaller shares, with education allocated 8.1% and health<br />

4.2%. However the funds allocated to the Industrial and Power sectors include major investments in<br />

the completion of the Chhukha Hydel Project and a large cement plant.<br />

2.13 Table 2.3 compares 6FYP planned allocation of expenditures with what actually happened during the<br />

Plan's first three years and was budgeted for 1990/91 and 1991/92. (The table combines capital and current<br />

expenditures.) In general, the sectoral allocation of expenditures corresponded quite well to what was envisaged in<br />

6FYP. The shares of education and health were somewhat higher than anticipated (15.2% vs. 12.6%) and<br />

expenditure on other community services accounted for another 4% of the total. The higher share of social services<br />

was offset by smaller than anticipated shares for most economic services, especially the power and<br />

business/industrial sectors.<br />

5

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