1 TRANSLATION OF THE PROCEEDINGS AND ... - APFA News

Nu.260 million was spent on purchasing buildings for embassies in New York,
Geneva and Bangkok. Furthermore, the daily wage of national work force was
increased from Nu.50 to Nu.100. The increases in the cost of essential items
also increased expenditure of nationally executed projects. The DSA and sitting
fees of the members of GYT have also been increased. In all, the results of the
fiscal year 2000-2001 have been very positive. Since there has been favourable
feedback by the International Monetary Fund on Bhutan’s fiscal management,
the Royal Government’s policies and programmes deserves to be appreciated.
The Hon’ble Minister then submitted the budget for the fiscal year 2001-2002
for approval by the National Assembly. Considering the security situation and
the national revenue, the Ministry of Finance has estimated a budget of
Nu.10,047.144 million which represents an increase of only 3.5% from the
Nu.9,704.934 million spent in the previous year. The budget has been kept low
mainly because there will be difficulty in seeking external assistance in the
event of a national emergency. It is important to remember that the fiscal
spending for this year would be met, as far as possible from the budget
approved by the Assembly. The resource gap would otherwise amount to
Nu.1,047.101 million or 10.42% of the projected GDP.
If Bhutanese children must have good education, it is important to have
motivated teachers. The teaching allowance of primary school teachers has
therefore, been increased from 15% to 30% of their salary. Similarly, medical
doctors were paid an incentive ranging from 30-40% of their basic salary to
improve health services.
The Hon’ble Minister then reported on the domestic revenue generation and tax
related issues. Although revenue from taxes is crucial to finance maintenance of
public facilities like schools and hospitals, it is also important in equitable
distribution of benefits. One of the aspirations of the people and of His Majesty
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