COUNTRY BACKGROUND - Gross National Happiness Commission

Economic Performance
Table 2.3 Planned and Actual 6FYP Expenditure
The Balance Between Capital and Recurrent Expenditure The Balance Between Capital and Recurrent
Expenditure
2.14 As well as rapid increases in the overall budget, the proportion of capital to recurrent expenditure had been
rising in the Plan period, as shown in Table 2.4. This has been particularly the case in the Social Services sector, as
shown below, where additional capital expenditure is likely to have the highest recurrent cost implications in future.
The capital:recurrent ratio as a whole tended to remain within the range of 50:50.
Year Capital Expenditure as % of Total Expenditure
Year Social Services
1987/88 13.2%
1988/89 13.5%
1989/90 13.7%
1990/91 20.7%
1991/92 25.6%
2.15 This has meant that there was insufficient recurrent provision for the additional capital investments and this,
combined with severe reductions in recurrent costs on existing programmes in the 1990/91 and 1991/92 budgets,
generated pressure on the Government to make substantial increases in the recurrent budget in the first year of the
7FYP.
6
Planned Actual
GENERAL PUBLIC SERVICES 21.1% 21.6%
EDUCATION 8.3% 10.9%
HEALTH 4.3% 5.0%
OTHER COMMUNITY SERVICES 1.0% 6.5%
ECONOMIC SERVICES 65.2% 52.3%
Business, Commerce & Trade
+ Mining and Manufacturing
Agriculture & Non-Mineral Resources
Public Works
Power and Technology
Transport and Communications
15.2%
17.5%
12.2%
13.4%
6.9%
6.6%
15.6%
8.9%
9.6%
11.7%
OTHERS 0.0% 3.7%
TOTAL 100.0% 100.0%
Sources: 6FYP planned allocation from Table 2.2 of 6FYP. Actual expenditures from Annual Statements of Account, DNBA. Budgeted, not
actual, expenditures are used for 1990/91 and 1991/92. Notes: 6FYP figures exclude 2.5% allocated for dzongkhags, as sectoral breakdown of
this figure is not available.