Economic Stimulus Programme (ESP)
The
Hon’ble Chairperson, Members, and secretariat staff attended a presentation on
the Economic Stimulus Programme (ESP) today.
Mr.
Chencho, Director of the Office of Cabinet Affairs and Strategic Coordination
(OCASC), provided an update on the progress and initiatives undertaken under
the ESP.
The
Nu. 15 Billion Economic Stimulus Programme intends to accelerate economic
recovery following the COVID-19 pandemic. The programme aims to enhance
domestic production, reduce youth unemployment, improve foreign currency
reserves, increase new business ventures, and revive the tourism industry.
He
highlighted that the first tranche of Nu 2.5 Billion was released by the
Government of India to the Royal Government of Bhutan in May 2024. This tranche
has been allocated to various sectors, including agriculture and livestock
development, creative industry, tourism development, and the De-Suung Skilling
Programme.
Several
initiatives are already in progress, such as the Price Guarantee Scheme for
priority crops and livestock products.
Another
key initiative under the ESP is the Concessional Credit Line, launched on
August 7, 2024, in Thimphu. Offering collateral-free loans at a 4% interest
rate, it targets new and expanding ventures in agriculture, livestock, small
industries, and manufacturing. The programme also includes a Reinvigoration
Fund, which provides interest subsidies to help distressed businesses recover
from the pandemic. Applications for this fund are open until December 31, 2024.
Following
the presentation, Members sought clarifications and shared their views on
various aspects, including the operational modalities of the fund, priority for
local ecotourism projects, transparency in price guarantee schemes, loan
accessibility for home ownership, and addressing challenges such as labour
shortage and market competition.
