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Budget Report 2008-2009

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Budget Report 2008-2009 TABLE OF CONTENTS Introduction ................................................................................................................... 5 Chapter I: Budget Policy and Fiscal Framework ...................................................... 7 Chapter II: Annual Financial Statements (AFS) of the FY 2006-07 ........................ 8 2.1 Expenditure: .............................................................................................................................................. 9 2.2 Revenue: .................................................................................................................................................... 9 2.3 Grants ...................................................................................................................................................... 10 2.4 Debt ......................................................................................................................................................... 11 2.4.1 Domestic Debt ........................................................................................................................................ 11 2.4.2 External Debt ........................................................................................................................................... 11 2.4.3 Fiscal balance .......................................................................................................................................... 11 Chapter III Revised Budget Estimates of FY 2007-2008 ...................................... 12 3.1 Expenditure ............................................................................................................................................. 13 3.1.1 Current Expenditure ................................................................................................................................ 13 3.1.2 Capital Expenditure ................................................................................................................................. 13 3.3 Net Lending ............................................................................................................................................. 14 3.4 Fiscal deficit ............................................................................................................................................ 14 3.5 Project-tied borrowings ........................................................................................................................... 15 3.6 Debt and Debt Servicing ......................................................................................................................... 15 3.7 Supplementary budgets granted during the year...................................................................................... 15 Chapter IV: Budget Estimates and Budget & Appropriation Bill, .. FY 2008-09 ....................................................................................................................................... 19 Part I: Budget Estimates for FY 2008-09 ................................................................. 19 4.1 Resources ................................................................................................................................................ 20 4.1.1 Domestic Revenue ................................................................................................................................... 21 4.1.2 Grants ....................................................................................................................................................... 22 4.2 Expenditure Outlay .................................................................................................................................. 23 4.2.1 Current expenditure ................................................................................................................................. 23 4.2.3 Net Lending ............................................................................................................................................. 25 4.3 Financing ................................................................................................................................................. 25 4.3.1 External borrowing .................................................................................................................................. 25 4.3.2 Debt servicing (principal repayments) ..................................................................................................... 25 4.4 Dzongkhag and Gewog Budgets ............................................................................................................. 26 4.5 SECTOR ALLOCATIONS ..................................................................................................................... 27 4.5.2 Agriculture............................................................................................................................................... 31 4.5.3 Trade, Industry and Private Sector Development .................................................................................... 32 4.5.4 Tourism Sector ........................................................................................................................................ 33 4.5.5. Vocational Training and Employment..................................................................................................... 33 4.5.6. Roads ....................................................................................................................................................... 34 4.5.7 Urban Development, Housing and Public Amenities .............................................................................. 36 4.5.8. Communications and Transport............................................................................................................... 36 4.5.9. Energy ..................................................................................................................................................... 37 4.5.10 Cultural Services ...................................................................................................................................... 38 4.5.11 Law and Order ......................................................................................................................................... 39 4.5.12 General Public Services ........................................................................................................................... 39 Part II: Budget and Appropriation Bill .................................................................. 40 Chapter V: Projections for FYS 2009-10 and 2010-11 ............................................. 51 5.1 Projection ................................................................................................................................................ 52 5.1.1 Domestic Revenue ................................................................................................................................... 52 5.1.2 Grants ...................................................................................................................................................... 52 2 5.1.3 Expenditure and Net Lending .................................................................................................................. 52 5.1.4 Fiscal Balance and Resource Gap ........................................................................................................... 52 5.1.5 Public Debt .............................................................................................................................................. 52 (a) External debt and debt servicing ............................................................................................................. 53 (b) Domestic Debt ......................................................................................................................................... 53 5.2 Balance of Payments (BoP) and Foreign Exchange Reserves ................................................................. 53 5.3 Inflation ................................................................................................................................................... 54 5.4 Gross Domestic Product (GDP) .............................................................................................................. 54 Chapter VI: Report on Trust Funds ........................................................................ 55 Trust Funds: ........................................................................................................................................................... 55 6.1 BTFEC .................................................................................................................................................... 55 6.2 Health Trust Fund .................................................................................................................................... 55 6.3 Cultural Trust Fund ................................................................................................................................. 56 6.4 Universal Service Fund - ICT .................................................................................................................. 56 Chapter VII: Report on State-Owned Enterprises ................................................. 57 7.1 Report on DHIL-owned and DHIL-linked companies ...........................................................................
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