The Economic and Finance Committee convened a consultation meeting today at the Lhen-zom Khangzang, Gyalyong Tshokhang, with the ESP Steering Committee members to review the status of the Economic Stimulus Programme (ESP). The ESP Steering Committee members led by the Hon’ble Finance Minister (Chair), provided an update on the programme's progress, focusing on key activities such as:  the status of concessional loans, reinvigoration fund  and initiatives implemented by various agencies as of 28 February 2025.

During the session, noting the slow pace of ESP implementation on one hand and a mere 17 months of balance implementation period on the other; members raised concerns about the timely completion of the programme. Moreover, observing the huge disparity of concessional loan disbursement among Dzongkhags, members shared their concern and recommended the BDBL to look into the possibility of minimizing the disbursement disparity to facilitate equitable development among the Dzongkhags. The members also requested the BDBL to share the gewog-wise list of concessional loan applicants along with the status.

The Finance Minister clarified that loan assessment and disbursements were carried out according to the date of application submitted, which is first in first out basis, giving a fair treatment to all.  A total of 3,969 loan applications were received by BDBL with a 30% rejection rate, largely due to loan proposals crossing the eligible loan ceiling. 

Eligible sectors for the concessional loans include primary agriculture and livestock with a loan ceiling of Nu 1 million, Production and Manufacturing (Cottage and Small Industries) with a loan ceiling of Nu 10 million, and  Production and Manufacturing (Medium)  with a loan ceiling of Nu 100 million. .

The ESP Secretariat informed that a significant portion of the ESP fund is directed towards concessional loans considering the initiatives such as home ownership and education loans, which are yet to be implemented. The Chairman of the ESP reaffirmed the importance of investing ESP in appropriate thematic areas to boost Bhutan’s economy and assured of closely monitoring the outcomes. 

The EFC committee also shared their concern on the effective use of ESP funds that are being allotted to Ministries to stimulate the program. Assessing the report, it is observed that expenses are incurred on those activities which could be supported through normal/regular planned budgets and where the return on investment is not clearly visible. They cautioned the committee to refrain from giving grants in film production, education loans and investing in construction of low income housing projects. 

Discussions also touched on issues such as requirement of annual livestock insurance premium as  a part of loan amount  and the possibility of granting loan in new thematic areas of economic priority. 

In conclusion, the Chair emphasized the importance of strengthening local industries and ensuring the completion of the ESP within the remaining timeframe. Members  were urged to continue collaborating with the relevant agencies and also to enhance awareness to the general public and collaborate with LG leaders to ensure the programme’s successful implementation and positive impact on Bhutan's economy. The members of EFC also assured their commitment in raising awareness on ESP to the public, and in contributing towards strengthening of institutional mechanisms and collaboration among stakeholders.