Bhutan’s development agenda under the 13th Five-Year Plan continues to gain steady financial backing, with the Government of India (GoI) having already disbursed more than Nu 12 billion toward a range of national and grassroots projects.
India’s total commitment of Nu 85 billion for the 13th Plan spans three key funding streams: Project Tied Assistance (PTA), Programme Grants, and targeted community development initiatives. According to official figures, Project Tied Assistance accounts for the largest share, with Nu 70 billion earmarked for major infrastructure and flagship programmes.
To date, Nu 7.29 billion has been released under PTA, with an impressive 83 percent of that amount already put to use. Officials describe this utilization rate as a clear indication of strong implementation capacity and timely project progress across sectors.
High-Impact Community Development Projects (HICDPs), a cornerstone of grassroots development support, have also seen structural revisions. The portfolio now includes 275 approved projects budgeted at Nu 4.40 billion. Meanwhile, nearly Nu 4.97 billion has already been disbursed to cover the initial two batches, signaling continued emphasis on local-level infrastructure, services, and livelihood improvement.
Programme Grants—flexible resources that allow the government to respond to priority needs—stand at Nu 5 billion in total commitments. Of this, Nu 1.25 billion has been released so far.
Additionally, a dedicated contingency reserve of Nu 1 billion has been set aside for Small Development Projects (SDPs), ensuring rapid response financing for emerging community requirements and localized interventions.
Under the Economic Stimulus Programme (ESP), designed to accelerate private sector recovery and strengthen economic resilience, India has released Nu 10 billion out of the Nu 15 billion approved. Current data reflects a utilization rate of 61.21 percent, with funds channelled into credit support, enterprise revitalization, and economic diversification efforts.
Officials note that India’s continued financial partnership remains central to Bhutan’s national planning strategy, supporting infrastructure expansion, social development, and economic reforms at both national and grassroots levels.
As disbursements progress and project implementation continues, Bhutan’s 13th Plan is expected to advance with renewed fiscal certainty and sustained bilateral support—further reinforcing one of South Asia’s most enduring development partnerships.
