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Bhutan’s Negative Balance of Payment with India


                    CRUNCH



 CRUNCH                         CRUNCH



          CRUNCH      INR            CRUNCH




                    CRUNCH

                                                  1
Complacent “WE”
     Blooming constructions                     Informal trading


 Excessive imports                                     FOREX regulation



Foreign expertise                                         Tax evasion
                               CAUSES
 Excessive lending                                   Economy liberalization


          Fronting                              Poor saving

                              Donor dependent


                                                                              2
Social factors (Self-planted bomb!)
                                            Attitude
                                    Pride

                         Hoarding

           Spendthrift
Earn without sweat




                                                       3
Scenario of RNR Products Import



     In       Out       In




             IMPORT
                &
             EXPORT

                                  4
INR                       Outflow
Value of imported items in 2011
                                                         118.430

                                     81.200           Products of milling
                                                        industry, malt,
                25.550                                 starches, insulin,
                                                         wheat gluten
                                    Coffee, tea and         (Flour)
  24.530            Misc edible         spices
                   preparations
                  (Yeast, baking
     Salt      powder, soup, soya
                sauce, mustard &
                   concentrates




                                                                            5
INR                    Outflow
Value of imported items in 2011
                                                        469.500

                                     313.900          Meat and edible
                                                      meat offal (Beef,
                  286.600                              pork, mutton,
                                                        chicken, etc
                                    Sugar excluding   including parts)
  159.800           Vegetables,          sugar
                  fruits and nuts    confectionery
  Fish & fish     (dry and fresh)
     items
   (Aquatic)



                                                                          6
INR                   Outflow
Value of imported items in 2011
                                                      3921.990
                                    1166.400

                   669.800
                                   Cereals (Mainly
                                                     TOTAL
  606.280         Dairy products        rice)

  Edible oils




                                                                 7
Anticipation from RNR

             Level 1 Level 2        Level 3        Level 4       Level 5



Kitchen gardening


       Farmer groups


                    Semi-commercialization


                                 Commercialization


                                             Export oriented farming




                                                                           8
Bowing bowl for our bowel

LIVE                      EAT
         NOT     TO

 BUT                      LIVE
          EAT     TO

       Dirty your hands
                                 9

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INR CRUNCH

  • 1. Bhutan’s Negative Balance of Payment with India CRUNCH CRUNCH CRUNCH CRUNCH INR CRUNCH CRUNCH 1
  • 2. Complacent “WE” Blooming constructions Informal trading Excessive imports FOREX regulation Foreign expertise Tax evasion CAUSES Excessive lending Economy liberalization Fronting Poor saving Donor dependent 2
  • 3. Social factors (Self-planted bomb!) Attitude Pride Hoarding Spendthrift Earn without sweat 3
  • 4. Scenario of RNR Products Import In Out In IMPORT & EXPORT 4
  • 5. INR Outflow Value of imported items in 2011 118.430 81.200 Products of milling industry, malt, 25.550 starches, insulin, wheat gluten Coffee, tea and (Flour) 24.530 Misc edible spices preparations (Yeast, baking Salt powder, soup, soya sauce, mustard & concentrates 5
  • 6. INR Outflow Value of imported items in 2011 469.500 313.900 Meat and edible meat offal (Beef, 286.600 pork, mutton, chicken, etc Sugar excluding including parts) 159.800 Vegetables, sugar fruits and nuts confectionery Fish & fish (dry and fresh) items (Aquatic) 6
  • 7. INR Outflow Value of imported items in 2011 3921.990 1166.400 669.800 Cereals (Mainly TOTAL 606.280 Dairy products rice) Edible oils 7
  • 8. Anticipation from RNR Level 1 Level 2 Level 3 Level 4 Level 5 Kitchen gardening Farmer groups Semi-commercialization Commercialization Export oriented farming 8
  • 9. Bowing bowl for our bowel LIVE EAT NOT TO BUT LIVE EAT TO Dirty your hands 9