Bhutan spends big on environment

Bhutan spends a substantial amount on environment-related activities, according to a public environmental expenditure review by the Department of Public Accounts (DPA).

In 2009 and 2010, the government spent Nu 1,966 million on environment, which accounts for 6.5 percent of the total public expenditure.

During the 2008-2009 fiscal year, the Public Environmental Expenditure (PEE) was Nu 1,322 million, which accounted for 5.7 percent of the total public expenditure.

The core PEE was Nu 756 million. According to the report, Bhutan’s public expenditure on environment is relatively higher than other countries.

Between the 2008-2009 and 2009-2010 fiscal years, there was an absolute increase in the PEE of almost 49 percent. However, the report states that following years will show if the increasing trend is sustained for the remaining 10th five-year plan.

The 49 percent increase in the PEE was largely due to external funding. It was higher in 2009 and 2010 because in the previous fiscal year, most of the investment projects and tenders were not finalized as the 10th five-year plan was at an initial stage.

The proportion of government-funded PEE decreased from 6 percent to 5.4 percent in 2009-2010.

Around 30 percent of the PEE was allocated to the local government, which the report says, shows the growing fiscal decentralization in the country. 70 percent of the PEE was incurred at the central level.

The PEE in the ministries of agriculture and forests, economic affairs and works and human settlements accounted for 60 percent of the total PEE while the National Environment Commission secretariat accounted for only 3.4 percent.

The largest chunk of PEE was allocated to forestry programmes. However, the share of PEE for forestry services programmes decreased by 10 percent from 40.4 percent in 2008-2009 to 30.4 percent in 2009-2010.

This was due to increase in the environmental expenditure for Urban Development and Engineering Services by 10 percent.

The governments of India and Demark provided almost half of the total external funding for PEE amounting to Nu 1.271 million. India funded 26.9 percent and Denmark funded 21 percent.

Almost a quarter of the funds was provided by multi-lateral organizations such as the Asian Development Bank, Global Environment Fund, World Bank and UN agencies while the rest were provided by other bilateral and multilateral development partners and international organizations.

The PEE is divided into nine main clusters such as environmental protection, biodiversity conservation, natural resource management, climate change, soil conservation and land management, among others.

Most of the external funding was provided for climate change, which accounted for Nu 222.4 million in 2008-2009 and Nu 71.9 million in 2009-2010. The lowest external funding was provided for natural resource management. In 2008-2009, it received Nu 33.6 million, which dropped to Nu 21.9 million in 2009-2010.

Asked if the recent trends of donor agencies phasing out of Bhutan would impact environment funds, Sonam Wangdi, the officiating chief budget officer of the DPA, said the funds would only increase considering the growing issues of climate change. “It is just picking up now,” he said.

Sonam Wangdi said the department is now planning to include the private sector in the conduct of such studies. “Unless we include the private sector, we will not get a complete picture of the mitigation and protection measures that have to be taken,” he said.

He also said there is still a need to designate agencies to look into funding environment programmes being carried out in schools. “Most of the environment-related activities carried out in schools today are done with contribution from parents,” he said.

By Pushkar Chhetri

2 Responses to “Bhutan spends big on environment”

1. Lhaden says:

   November 23, 2011 at 11:13 am

   “a need to designate agencies to look into funding environment programmes being carried out in schools. “Most of the environment-related activities carried out in schools today are done with contribution from parents,”.

   If some appropriate funding is provided to all schools for the environment-related activities, we think the schools can bring changes in lots of improvement like done in Nangkor School in Pemagatshel. Moreover, our school childrens will have opportunities to learn and know more about our environment in their practicality and not on bookisk knowledge only. Hope authority concerned will look into positive answers.

   Reply
2. Tshering says:

   November 24, 2011 at 3:31 pm

   Dear Lhaden, don’t worry. They will definitely do coz. the climate change has already warned and punished us a lot disastoriously.

   We all must contribute towards climate change and protection of our environment to save all living beings on this earth.

   Reply