Budget report

June 22, 2011Posted inGovernment12 Comments
The finance minister presented the government’s budget proposal on Monday. Here are some of my random thoughts on the budget. Pay increase. Last year’s pay hike for public servants cost the government Nu 380 million. PIT increase. The government made an extra Nu 247 million in personal income taxes last year, mainly because of the pay hike. Tax refund. The government collected Nu 28 million by increasing vehicle taxes unlawfully last year. At the Supreme Court’s orders, the government has refunded that money to the taxpayers. Government expenditure. The government’s expenditure for this financial year is budgeted at Nu…

Discriminating industries

January 13, 2011Posted inEconomy
Today’s steel prices: A ton of 10 mm TMT bar manufactured in Bhutan (by Karma Steel, for example) costs Nu 39,000 in Phuentsholing. A ton of similar grade (Fe415) 10 mm TMT bar manufactured in India (by SRMB, for example) costs Nu 42,900 in Jaigon, outside Phuentsholing. If you were a contractor, which steel would you buy? Bhutanese steel, right? All else being the same, TMT bars manufactured in Bhutan would be cheaper by Nu 3,900 per ton. But Punatsangchu Hydropower Project Authority contractors prefer Indian steel. Why? Because for PHPA, the government refunds the excise duty levied on…

Appealling justice

November 30, 2010Posted inJustice
Yesterday, after learning that the government was appealing the High Court’s verdict, Bhutan Today sent me some questions. With their permission, I’m reproducing their questions and my answers here. What do you think about the government appealing to the Supreme Court? I am pleased that the government has decided to appeal to the Supreme Court, as they were obviously not satisfied with the High Court’s verdict. Remember that the government has the right to appeal to the Supreme Court. As far as the opposition party is concerned, we respect the government’s decision to appeal, and will submit to the…