Bhutan Macroeconomic and Public Finance Policy Note

Bhutan’s hydropower generation potential raises the prospect of tremendous development opportunities for the country: fast increasing export revenue, sustained economic growth, and rapid poverty reduction. Driven by developments in the hydropower sector, the country has grown at an average rate of 7 percent per year over the last decade, while poverty has declined remarkably fast. But hydropower development also creates significant challenges as follows: (i) macroeconomic instability; (ii) lack of self-reliance; and (iii) few private sector jobs. This policy note assesses the opportunities and challenges associated with hydropower development. It informs a possible strategy supportive of macroeconomic stability, fiscal self-reliance and private sector development. And it argues that fundamental changes in public finance, amounting to a paradigm shift, are central to the implementation of such strategy.

Bibliographic Details

Main Authors:	Boyreau, Genevieve, Rama, Martin
Format:	Report biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2015-11
Subjects:	DEFICIT, MONETARY POLICY, HOLDING, BORROWER, EQUIPMENT, ECONOMIC GROWTH, PRIVATE SECTOR PARTICIPATION, ACCOUNTING, DEMAND FOR CREDIT, PUBLIC PROCUREMENT, FOREIGN INVESTORS, OLD-AGE PENSION, INTEREST, PUBLIC INVESTMENTS, PUBLIC SECTOR, GOVERNMENT SPENDING, INTEREST RATE, OPTION, EXCHANGE, SPENDING, PUBLIC SECTOR WORKFORCE, SERVICES, DEVELOPING COUNTRIES, TAX COLLECTION, REAL INTEREST, HOUSING, REVENUES, FISCAL POLICY, FINANCIAL STATEMENTS, LOAN, REPAYMENT PERIOD, PRICING, TAX, INCOME TAX, BUDGETING, INFORMATION SYSTEMS, INFLATION, PENSION, DEBT BURDEN, INSTRUMENTS, DEBT INTEREST, BUDGET, PUBLIC SECTOR COMPENSATION, MACROECONOMIC STABILITY, FISCAL POLICIES, CONTRACTS, PERSONAL INCOME, TAX REGIME, TRADING, TAX EXEMPTIONS, RECURRENT EXPENDITURES, OPTIONS, INVESTMENT FUNDS, DEBT, MARKETS, FORECASTING, HOUSEHOLD INCOME, RETURN, PUBLIC PROPERTY, PUBLIC FINANCE, BUSINESS CYCLE, MACROECONOMIC FLUCTUATIONS, LABOR, LOANS, REAL INTEREST RATE, PER, ASSET CLASSES, CAPITAL INVESTMENTS, DEBT SERVICE, PENSION FUNDS, SUBSIDIES, MONETARY AUTHORITY, FINANCE, GRANTS, PUBLIC, PUBLIC INVESTMENT, INFRASTRUCTURE, TAXES, FIXED EXCHANGE RATE, FISCAL DEFICIT, HEALTH SPENDING, INVESTMENT DECISIONS, EXPENDITURE, TRANSACTIONS, EQUITY, CREDIT EXPANSION, INVESTORS, MACROECONOMIC INSTABILITY, GOOD, TAX RATE, TRANSPARENCY, PUBLIC EXPENDITURE, BUDGET SURPLUS, FUTURE, ELECTRICITY, RETURNS, BUDGETS, INVESTMENT PROJECTS, PUBLIC EXPENDITURES, BUDGET IMPLICATIONS, REPAYMENT, GOVERNMENT REVENUE, EXPENDITURES, PUBLIC TRANSPORT, ECONOMIC EFFICIENCY, AMORTIZATION, PROPERTY, BIDS, CURRENT ACCOUNT DEFICIT, TAX RATES, HOUSING PRICES, PRIVATE SECTOR, PUBLIC SECTOR DEFICIT, REAL EXCHANGE RATE, DEFAULT, MARKET, FOREIGN EXCHANGE, TAX REVENUE, MANAGEMENT, ROADS, INFRASTRUCTURE INVESTMENTS, TAXATION, PUBLIC SECTOR EMPLOYMENT, GOODS, LAND, LOCAL ECONOMIES, SECURITY, INVESTMENT, COMMERCIAL BANKS, SHARE, IMMOVABLE PROPERTY, INVESTMENT CLIMATE, TAX SYSTEM, POVERTY, INTERNATIONAL STANDARD, FISCAL BALANCE, CAPITAL INFLOWS, REVENUE, EXTERNAL DEBT, INVESTMENTS, DEGREES OF RISK, LEGAL OBLIGATIONS, DEBT REPAYMENT, IMPLICIT TAX, AMOUNT OF DEBT, FISCAL DISCIPLINE, EXCHANGE RATE, PUBLIC SPENDING, PUBLIC SERVICE, PAYMENT SYSTEMS, SMALL BUSINESSES, DEVELOPMENT BANK, INCOME LEVEL, BUDGET SURPLUSES,
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26470913/ https://hdl.handle.net/10986/24581
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