COUNTRY BACKGROUND - Gross National Happiness Commission

Economic Outlook
Recurrent Expenditure ProjectionsRecurrent Expenditure Projections
7.15 The capital and recurrent budgets for the 7FYP are shown by Department in Table 7.2, with the phasing
over the Plan period shown in each of the sectoral Chapters. The recurrent expenditures of the Government are
targeted to grow by an average of almost 10.8% p.a. during the 7FYP. Figure 7.1 shows that recurrent expenditures
increase substantially in real terms compared with the 1991/92 budget, to ensure that Departments are able to
continue the implementation of existing activities and programmes, however real total recurrent spending will not
exceed the level reached in 1989/90. Of the total recurrent budget, 21% is provided for new activities. The
average rate of growth in real terms is at the same level as the anticipated rate of growth of GDP: as described in
Chapter 3, the Approach to Development, the intention is to improve the quality and efficiency of Government
services and programmes, by providing for human resource development and maintenance of basic infrastructure.
The emphasis of the expenditure targets is thus on consolidation rather than a large expansion of Government
services or investment in new infrastructure. Figure 7.1 indicates how the overall recurrent budget will be phased,
while Figure 7.2 shows the distribution between the social, community, economic and Government Administration
sectors.
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Figure 7.1