THE SIZE OF PUBLIC SECTOR IN BHUTAN-IS IT INCREASING OR DECREASING?
I. Introduction
Bhutan has initiated a vigilant policy of modernization in the mid 1960s but remains predominantly agriculture based economy. Bhutan economy is still dependent on agriculture and forest which provides 80% of livelihood of the population and accounts about 40% of DGP.
Bhutan is one of the least developed countries in the world and Bhutan is also believed to be one of the peaceful nations. Public sector and private sector plays an important role in economy development of Bhutan. Public sector is the main sector of an economy development and the composition of public sector varies from country to country. The most public sectors could be the education and health care, public road, police and military and public transit etc. Royal government of Bhutan has priotise the development of private sector because private sector is considered as the engine of economic growth.
The growth of public sectors in the country has help in many fields like transportation, education, health for the social benefits, private sectors in the creation of jobs and increase in income which indirectly reduces poverty in a country.
Government has a critical role to play in ensuring the well being of its citizens. The public sector in Bhutan is significantly increasing with the development activities taking place and with increase in population, the public spending serves an important function in pursuing economic growth and while ensuring that gains are widely distributed to promote and increases in living standards of the people. Government spending in certain areas is more likely to contribute to growth and a wider distribution of benefits than spending in others.
II. Litera...
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At the beginning of the 20th century, government budgeting was a decentralized process more conducive to the small government ideals at that time. The executive branch was less involved in the process and less influential in terms of funding decisions. There were no definitive procedures and no real central authority. The submission process was informal and chaotic. Each agency subm...
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