1

CRUNCH

CRUNCH

CRUNCH

CRUNCH

INR

CRUNCH

CRUNCH

Bhutan’s Negative Balance of Payment with India

2

CAUSES

Blooming constructionsBlooming constructions Informal tradingInformal trading

FrontingFronting Poor savingPoor saving

Foreign expertiseForeign expertise Tax evasionTax evasion

Donor dependentDonor dependent

FOREX regulationFOREX regulationExcessive importsExcessive imports

Excessive lendingExcessive lending Economy liberalizationEconomy liberalization

Complacent “WE”

3

Spendthrift

Hoarding

Attitude

Pride

Earn without sweat

Social factors (Self-planted bomb!)

4

In Out In

IMPORT &

EXPORT

Scenario of RNR Products Import

5

Value of imported items in 2011

24.530

25.550

81.200

118.430

Salt

Coffee, tea and spicesMisc edible

preparations (Yeast, baking powder,

soup, soya sauce, mustard &

concentrates

Products of milling industry, malt,

starches, insulin, wheat gluten

(Flour)

INR Outflow

6

Value of imported items in 2011

159.800

286.600

313.900

469.500

Fish & fish items

(Aquatic)

Sugar excluding sugar

confectioneryVegetables,

fruits and nuts (dry and fresh)

Meat and edible meat offal (Beef,

pork, mutton, chicken, etc

including parts)

INR Outflow

7

Value of imported items in 2011

606.280

669.800

1166.400

3921.990

Edible oils

Cereals (Mainly rice)Dairy products

TOTAL

INR Outflow

8

Level 1 Level 2 Level 3 Level 4 Level 5

Kitchen gardening

Farmer groups

Semi-commercialization

Commercialization

Export oriented farming

Anticipation from RNR

9

Dirty your hands

LIVE EATNOT TO

BUTTOEAT

LIVE

Bowing bowl for our bowel