The indicative cost of plan is currently estimated at around Nu 135 billion. About Nu 64 billion is to come from domestic revenue, GoI assistance is Nu 35 billion, other donors assistance is at Nu 13 billion and external borrowings stands at Nu 13 billion.

This leaves an estimated resource gap of Nu 14 billion.

The finance minister’s report states that a narrow internal revenue base was a resource challenge. The general aid environment in the donor world limited external grants and taking too much external loans was limited by a Constitutional provision of not unduly burdening the future generation with debts.

While the overall goal is gross national happiness, the plan objective is to reduce poverty from 23 to 15 percent. However, at the moment, this objective is still very tentative, as are other major plan targets (see box), according to the minister.

The overall approach is to make investments for socio-economic development and in resource generating projects. Some of the focus areas in the plan will be rural roads and rural electrification. In the resource generation sector, the thrust will be on developing hydropower projects, the industrial sector and tourism infrastructure.

Some of the major economic infrastructure projects in the plan, as of now, are the southern east-west highway construction, the Gelephu international airport, domestic airports, dry port in Phuentsholing and the widening of the Chhuzom-Phuentsholing highway.

The major projects outside the plan are mainly the 11 hydropower projects, that are planned to be financed in partnership with the government of India and with Indian public corporations. Other projects outside the plan are the Dungsam cement, the railway link with India, the widening of Trashigang-Samdrup Jongkhar highway, industrial estates and a medical college.

Lyonpo Wangdi Norbu said that a lot of work needs to be done within the two months and the government would be able to present a clear picture of the 10th Plan in the fall session of parliament.

Source: http://www.kuenselonline.com