Development Plan In Bhutan Essay

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Background
Aeons back before the economy were monetized and developed, Bhutan remained closed to the outside world and the citizens of the country chiefly depended on the agriculture and farming system which met their subsistence needs. In order to support the administrative and growth of nation, they perform it in the form of labour contributions or grain taxes. Though this system was doing well, the country’s economy potential was limited in the absence of greater specialization and trade.
Thus in efforts to develop network with other countries and improve the economy of the country, his majesty the third Druk Gyelpo King Jigme Dorji Wangchuck initiated the implementation of first Development Plan in 1961/66. With a mere budget of Nu.174.7 million, the basic infrastructure like roads, communication system, power, modernize agriculture, animal husbandry, heath, education and transport services were given importance. Thereafter, with every new five year development plan, the total budget for the development of the welfare of the country drastically increased. Compared to the first five year plan budget of 174.7 million ngultrum, the current budget of 11th five year plan is much more which stands nearly at 213 billion. This shows the huge rise in the public expenditure by the government over the last few decades.
Of late, with the growth in private sector, inflow of FDI, tourism industry, manufacturing company, more diplomatic relation with other countries etc has further helped in increasing the Gross Domestic Product (GDP) of the country. With higher GDP, more budgets will be there to improve the quality of life of the citizens but on contrary, with increasing population and more infrastructure development, the economy state of t...

... middle of paper ...

...w decades, the budget outlay for the public expenditure has drastically increased.

Reference
Retrieve on 12/04/2014 from http://www.gnhc.gov.bt/wp-content/uploads/2011/04/07fyp.pdf Retrieve on 12/04/2014 from http://anepigone.blogspot.com/2011/10/national-government-spending-as.html Retrieve on 12/04/2014 from https://www.imf.org/external/pubs/ft/wp/2012/wp12173.pdf Retrieve on 13/04/2014 from http://www.oecd-ilibrary.org/sites/9789264075061 en/03/01/index.html?itemId=/content/chapter/9789264061651-8-en
Retrieve on 13/04/2014 from https://www.google.bt/#q=literature+review+on+gdp+of+LDC Retrieve on 14/04/2014 from http://www.oecd ilibrary.org/docserver/download/4209151ec008.pdf?expires=1397375338&id=id&accname=guest&checksum=54F8C2E50AB783062C59269EB0B222FD
Retrieve on 14/04/2014 from
http://www.tradingeconomics.com/australia/government-budget

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