Treasury bill for financing deficit of ambitious budget (Economy)

Published on Oct 18 2008 // Main News

Thimpu, October 18: The lofty and ambitious budget the new government brought in this year is gradually making implications and government is now forced to introduce treasury bill.

The government is likely to bring in, shortly, treasury bill to finance the budget deficit of Nu 3.19 billion.

The pay hike proposal and continued inflation cut short the government budget to meet the target programs. Since constitution bars money generated from such bills invest directly on current expenditure, government plans to shift the budget from some capital expenditure into pay hike to be replaced by treasury bill.

The government had expected a considerable increase in support from India following announcement by Dr Man Mohan Singh of Nu 100 billion grant but it has not been materialized so far. Bhutan News Service