COUNTRY BACKGROUND - Gross National Happiness Commission

Economic Performance
12
electricity sales.
(c) The momentum of Government expenditure growth continued, leading towards budget deficits.
(d) The financing of the government deficit by borrowing from the RMA led to an increase in domestic
demand, which quickly leaked into imports and started a rapid decline in Bhutan's reserves of rupees,
as explained above.
2.28 Recognising the problem, and the need for macroeconomic stabilisation, the Government adopted a very
restrictive budget for 1991/92. In planning for RGOB expenditures in the 7FYP, it has been necessary to take into
account the factors described above. These are discussed in more detail in Chapter 7, Economic Outlook.
VI. Human Development IndicatorsVI. Human Development Indicators
Table 2.6 Human Development Indicators
INDICATORS MOST RECENT DATA IN 1991
Life Expectancy at Birth 48.9 years in 1990
Maternal Mortality 7.7 per 1,000 live births
Infant Mortality 142 per 1,000 live births
Under Five Mortality 195 per 1,000 live births
Child Malnutrition 50% of Children Under 5 severely or moderately
underweight
Immunisation 84% of all Children in 1990
Access to Safe Water 40% of Households
Provision of Sanitation 60% 0f Households
(large proportion unhygienic)
Access to Health Services 90% of Population
Gross Primary School Enrolment 66.9% of all children in 1990
Adult Literacy 30% Adult Males
10% Adult Females
Proportion of RGOB Budget
Health
Education
6FYP
5.0%
10.9%
2.29 While Bhutan was able to achieve impressive rates of GDP growth during the 1980s, with per capita GDP
at about $370 in 1991, the Government recognises that Gross Domestic Product is too narrow a measure
of development. Improvements in the population's social welfare as measured by access to education, health and
other social services are considered equally with increases in GDP. These key basic indicators of welfare ("Human
Development Indicators" in UN terminology) are easily measured through comparison of health and education
statistics, although the lack of data makes the interpretation of health and education data difficult. Other
considerations also affect the quality of people's lives such as the preservation of social structures, including family
life and religious institutions. However these considerations are less easy to quantify. The
fact that incomes are equitably distributed amongst the population, means that economic growth has achieved a
wider spread of benefits.
2.30 Since the implementation of the First Five Year Development Plan, there have been substantial
improvements in health and education services provided by the Royal Government. This has meant that 90% of the
population had access to basic health facilities and the gross primary school enrolment rate reached nearly 70% by
1991. However, some of the HDI indicators remain particularly poor, as shown in Table 2.6 above.
2.31 These indicators show the low levels of safe water and sanitation facilities which account for the high levels