Bhutan’s economy is gaining momentum as the government pushes ahead with an ambitious plan to transform the country into a high-income Gross National Happiness (GNH) economy by 2034. Prime Minister Tshering Tobgay said the country is steadily progressing toward its target of raising gross domestic product (GDP) to USD 10 billion within the next decade.
Speaking during a session of the National Council, the Prime Minister noted that Bhutan’s GDP has already expanded by 40 percent since the launch of the 13th Five-Year Plan, reaching approximately USD 3.5 billion. The government is now aiming to lift the figure to USD 5 billion by the conclusion of the current plan period.
The country’s fiscal position, however, came under scrutiny during the parliamentary discussion. Jamyang Namgyal, a representative from Pema Gatshel, raised concerns over a projected resource shortfall and the pressure posed by the fiscal deficit.
According to the MP, the 13th Five-Year Plan initially estimated a financial requirement of Nu 512 billion, while expected resource mobilisation stood at only Nu 456 billion, leaving a gap of Nu 56 billion. He also warned that a fiscal deficit equivalent to three percent of GDP could pose additional challenges to the country’s economic ambitions.
In response, Prime Minister Tobgay assured lawmakers that the government had already secured the necessary funding to support the implementation of the development plan. He said total available resources have now increased to Nu 517 billion, exceeding earlier estimates. The government has also identified mechanisms to mobilise an additional Nu 61 billion beyond the planned budget.
Despite the improved outlook, the Prime Minister acknowledged that expenditures may continue to rise as new initiatives and infrastructure projects emerge during the mid-term review of the Five-Year Plan.
The government also highlighted improvements in domestic revenue generation. According to the Prime Minister, revenue collections increased from Nu 330 billion at the beginning of the plan period to Nu 383 billion. Additional earnings of Nu 52 billion were generated through dividends and profit transfers from Druk Holding and Investments, state-owned enterprises, and the Ministry of Finance.
Bhutan has also benefited from external financial assistance, particularly from India, which provided Nu 85 billion in support, including Nu 15 billion allocated to the Economic Stimulus Programme.
Prime Minister Tobgay stressed that sustained growth would depend on strengthening key sectors of the economy, including energy, tourism, agriculture, and infrastructure development. He expressed confidence that with continued investment and strategic planning, Bhutan could remain on course toward achieving its long-term economic vision while preserving the principles of Gross National Happiness.
