Recent Budgeting and Public Expenditure Developments in

BHUTAN

12th OECD – Asian Senior Budget Officials Meeting 15-16 December 2016

Bangkok, Thailand

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Country background

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BHUTAN

CHINA

INDIA

NEPAL

Population

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733,000

2013 estimates

733,000

Governance System

Central

Dzongkhags

Gewogs

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The Parliament

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His Majesty the Druk Gyalpo

National Council (House of Review)

National Assembly (Govt. & Oppt.)

Facts of Fiscal Year 2016-2017

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Outlay: Nu. 49,981.584

million

Current expenditure:

Nu.25,387.034 million

Capital expenditure:

Nu. 26,497.330 million

Resource: Nu. 41,605.862

million

Estimated Fiscal deficit : 5.32 % of GDP

Major features and developments in the FY 2016-2017

The Government has initiated a system of Block Development Grant to Local Governments (LG)

Budget allocation for capacity building and Human Resource Development is decentralized and directly allocated to LGs

More programs and projects were directly provided to LGs to empower and also to built their capacities

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Major features and initiatives in the FY 2016-2017 Contd…

Investment in consolidation of schools to improve the quality of education, enhancement of agriculture produce towards fulfillment of food self-sufficiency, improvement of accessibility to health, industrial investment etc.

Creation of State Owned Enterprises for effective and efficient public service delivery

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Developments in Financial Management System

Introduced web-based application software for Public Finance Management and Planning and Evaluation systems like GPMS, PlaMS, MYRB, PEMS, RAMIS

The GPMS, PlaMS, MYRB and PEMS are integrated on several aspects

An independent evaluation team is established to evaluate and review the annual performance of all the budgetary agencies

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Developments in Financial Management System Contd…

Implementation of online fund transfer system through Electronic Fund Transfer and Clearing System (EFTCS) for salaries and other periodic expenses

A National Internal Control Framework developed based on the Committee of Sponsoring Organizations (COSO) principals (2013)

Phased issue and implementation of accounting and auditing standards for public corporations

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Developments in Financial Management System Contd…

Strengthening the national procurement system which includes strategic procurement, e-procurement, framework agreement and capacity building to ensure value for money, economy and efficiency

RGoB is pursuing a Public Financial Management action program based on PEFA findings (Report 2016)

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Thank you

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