Page 59 - PDP Manifesto 2018
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58 MANIFESTO : 2018
4.3 An Ef cient Public Finance
and Sound Macro Economic
Management
A dynamic scal policy and a prudent scal discipline are fundamental to achieve sustainable economic growth with stable macroeconomic environment. E orts
have to be made to strengthen public nance management for e ective resource mobilization, e cient allocation, prudent expenditure and debt management with proper accountability of public resources.
Domestic revenue grew at an average of 20% annually from 1980 to 2017 increasing from Nu. 120 million in 1981-82 to Nu 28,034 million in 2015-16. e increase
in internal revenue generation shows a remarkable progress in the mobilization e orts in both tax and non-tax revenue.
Pledges:
While tax revenue has grown at an annual average of 19% from 1980 to 2018, non- tax revenue grew at a higher rate of 25%. Major contributors to tax revenue include corporate income tax, sales tax and excise duty whereas dividend and pro t transfers from state owned enterprises were major sources of non-tax revenue.
4.3.1 Addressing Public Debt
Bhutan’s public debt stands at Nu. 173 billion today, which mainly consists of rupee denominated hydropower debt. But it has to be noted that 72% of the total debt is self-liquidating hydropower debt. Although the debt levels are expected to decrease and remain within threshold, the PDP shall redouble e orts towards earn- ing hard currency to sustain external debt service.
We shall deliver an average growth rate of 10% in the next ve years.
We shall enhance domestic revenue to cover about 80% of the total expenditure.
We shall explore and consider partnership under Public Private Partnership (PPP) modality with nancial institutions like National Pension and Provident Fund (NPPF) to bridge the gap in infrastructure nancing.
We shall develop a robust and inclusive macroeconomic model to strengthen coordination, reporting and policy formulation.
We shall promote e-procurement and e-auctioning systems.
PEOPLE’S DEMOCRATIC PARTY UNITY. STABILITY. PROSPERITY.
