ADB approves 40 mln USD loan to Bhutan

The Asian Development Bank (ADB) said on Thursday it has approved a policy-based loan of 40 million U.S. dollars to help Bhutan further strengthen its public financial management and green growth. The concessional loan aims to support policy reforms in expanding domestic resource mobilization, promoting private sector development, and introducing climate change adaptation and mitigation measures.

Under the program, domestic resource mobilization is expected to be strengthened by improving customs and property tax administration, implementing a medium-term revenue strategy, and enhancing governance and management of state-owned enterprises. "This will significantly reduce the gap between current expenditures and tax revenues.

The rollout of an integrated financial management information system will improve public financial management," the ADB said. It added the program will help promote private sector development and streamline, modernize and digitize investment, business processes and trade services to enhance the ease of doing business in the country.