Commitment to Equity Analysis · Bhutan

Fiscal Policy Reference Dashboard

CEQ 2017 → 2022 Update
🇧🇹 Bhutan
2017 – 2022
CEQ 2017

Agricultural and Rural Subsidies 2022–25

Subsidy / Support Programme Description and Transfer Details
Price Support for Bhutan Agro Industries National subsidy spending explicitly includes price support for Bhutan Agro Industries to maintain operations.
Rural Life Insurance Scheme A mandatory permanent scheme where the government provides a Nu. 108 subsidy toward the annual Nu. 195 premium, with the individual paying the remaining Nu. 87.
Rural House Insurance Scheme A mandatory programme providing insurance for rural homes against natural disasters (fire, flood, earthquake), which is partially subsidised by the state to protect rural assets.
Economic Stimulus Plan (ESP) Subsidies An India-financed plan (amounting to ~5% of GDP) that provides subsidies, capital grants, and support for equipment acquisition intended to raise productivity in agriculture and agribusinesses.
Low-Interest Agricultural Loans The Ministry of Agriculture and Livestock (MoAL) facilitates low-interest loans specifically for the agriculture and livestock sectors.
Cost-Sharing Mechanism (RNR) An established mechanism for the Renewable Natural Resource (RNR) sector to support development and community participation.
Electricity Subsidies Included in national fiscal expenditure (0.27% in FY 2023–24) to support various operations, including those in rural and agricultural areas.
Wage Subsidies (via YELP) While a labour programme, it provides monthly allowances (Nu. 5,000 to Nu. 9,000) to private sector employers, including those in the agricultural sector, to hire and train youth.