Overview of Bhutan’s Economic Stimulus Plan Implementation

Bhutan’s Economic Stimulus Plan launched in 2024 focuses on reviving key sectors with loans and programs to boost jobs and production. However, there have been some discrepancies and challenges in implementation.

In the 2023/24 elections, Bhutan’s People’s Democratic Party (PDP) party, led by Dasho Tshering Tobgay, promised big economic help through the Economic Stimulus Plan (ESP). The plan gave hope to many—from farmers to businessowners, students, and taxi drivers—that they’d get support or loans to get back on their feet after a rough period.

There has been attention given to the difference between the Nu 15 billion Enterprise Support Package announced for economic recovery and the smaller amounts allocated specifically as concessional credit and sectoral support. The ESP aimed to help a diverse range of people and businesses bounce back from COVID-19’s impact.

Their commitments included the introduction of special loans, simplified guidelines, targeted efforts for priority sectors like tourism and small industries, and additional support for women and youth entrepreneurs. To oversee and ensure effective delivery of the package, a dedicated management team was proposed to coordinate these initiatives as outlined

ESP Funds Implemented

• Out of the Nu 15 billion, only about Nu 5.3 billion was given as loans to help businesses restart.

• Most of the money was used to help agriculture, livestock, and small manufacturing.

• Sectors like tourism, trading, taxi drivers, and hotels were not included in the ESP loans.

• Some of the ESP money went into other things like housing loans, education loans, training programs for young people, and funding for entrepreneurs.

Why Did the Plan Change?

• The government created a committee to look at the plan more closely. They decided not to send all the money out as loans because Bhutan's economy is very dependent on imports, and too much money flowing quickly could hurt the country’s reserves.

• They also wanted to avoid giving money to sectors that might not create enough jobs, like hotels, where they felt there were already plenty.

• Some sectors received direct help instead of loans—for example, Bhutan’s tourism got money to improve offerings and attract more visitors.

• Not everyone could get a loan, especially those with unpaid old loans or bad credit history.

Concerns About Access 

• Bhutan’s Chamber of Commerce and Industry wished there was more support for all sectors, especially the ones hit hardest by the pandemic.

• Some called for more consultations and more transparency, but the law protects the privacy of who gets a loan.

• The government explained that there just wasn’t enough money to include everyone at once.

The Support That Was Provided

• The government promised steady prices for basic crops and livestock, making sure farmers could sell their goods and still make a profit.

• Youth training and jobs: There were programs to help young people learn new skills and get paid internships.

• Housing and education loans: Many people have already benefitted, including young people who received education loans.

• Support for small businesses and creative industries: Extra help was given to people starting new businesses or working in local industries.

In short, the ESP was supposed to help more people in many areas, but when it was put into action, the help focused on a few main sectors and programs, mostly because of limited money and the realities of Bhutan’s economy.

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