COUNTRY BACKGROUND - Gross National Happiness Commission

Table 2.5 Summary of RGOB Budgetary Operations
REVENUE
Tax revenue
Current non-tax revenue
Other
Total Domestic Revenue
EXPENDITURE
Current
Capital
Total Expenditure
Economic Performance
2.20 It should be noted, however, that the tax burden on the economy is somewhat understated by the financial
figures presented, because these figures do not include labour taxes. A typical household with a family size of 8.5
may be liable to a minimum about 40 person-days a year of various forms of labour tax, which represents a
substantial in-kind contribution to public revenues. If the value of labour is assumed at Nu 40 per day and the
number of households liable to pay labour tax is about 54,000, the value of labour tax would exceed Nu 86 m a
year.
TradeTrade
1987/8
actual
235.9
491.6
114.2
841.7
774.6
965.1
1739.7
1987/8 1988/9 1989/90 1990/1 1991/2
188.7
393.3
91.4
673.4
619.7
772.1
1391.8
232.0
480.0
93.0
805.0
909.0
1069.0
1978.0
231.8
586.9
161.4
980.1
1068.5
669.0
1737.5
250.6
640.7
319.7
1211.0
1094.0
1135.5
2229.5
1194.2
1027.6
932.7
1960.3
Current exp. surplus/deficit (-) 67.1 53.7 -104.0 -88.4 117.0 166.6
Total exp. surplus/deficit (-) -898.0 -718.4 -1173.0 -757.4 -1018.5 -766.1
Domestic revenue % of current exp. 108.7% 108.7% 88.6% 91.7% 110.7% 116.2%
Domestic revenue % of total exp. 48.4% 48.4% 40.7% 56.4% 54.3% 60.9%
GRANTS
From India
Other
Total Grants
OVERALL BUDGET
SURPLUS/DEFICIT (-)
Financed by:
External Borrowings (net)
Internal Borrowings (net)
Cash & bank balances
Other
708.9
221.0
929.9
567.1
176.8
743.9
564.0
227.0
791.0
290.2
198.3
488.5
440.6
466.8
907.5
213.8
448.0
661.8
31.9 25.5 -382.0 -268.9 -111.0 -104.3
210.3
-242.2
168.2
-193.7
491.0
-109.0
57.3
211.6
2.21 Bhutan has a very open economy: in 1989 exports amounted to about 27% of GDP, while imports were
38% of GDP. Consistent with the high level of capital formation, Bhutan's imports have continually exceeded
exports, although exports rose substantially from the mid-1980s. India is by far the dominant trading partner for
Bhutan: it has been the destination for more than 90% of Bhutan's exports. New export markets were opened
during the latter part of the 1980s, including Bangladesh. Bhutan's main exports are now electricity, wood products,
18.4
92.6
103.7
0.6
TOTAL FINANCING -31.9 -25.5 382.0 268.9 111.0 104.3
Source: RMA, Selected Economic Indicators, March 1991 (years to
1989/90); Ministry of Finance Budget Summary for 1990/91 and 1991/92.
For 1990/91 and 1991/92 it is assumed that the resource gap is covered by domestic borrowing.
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