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Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 207
ANNUAL FINANCIAL STATEMENTS
of the ROYAL GOVERNMENT of BHUTAN
for the YEAR ENDED 30 JUNE 2013
Department of Public AccountsMinistry of Finance
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 1
ANNUAL FINANCIAL STATEMENTSof the ROYAL GOVERNMENT of BHUTAN
for the YEAR ENDED 30 JUNE 2013
Department of Public AccountsMinistry of Finance
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 2
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List of Abbreviations
ADB Asian Development Bank
AFS Annual Financial Statements
BDBL Bhutan Development Bank Limited
BFA Budget Fund Account
BHPC Basochhu Hydro Power Corporation
BHTF Bhutan Health Trust Fund
BoBL Bank of Bhutan Limited
BTL Bhutan Telecom Limited
CDG Constitutional Development Grant
CHPC Chhukha Hydro Power Corporation
CIT Corporate Income Tax
CFA Consolidated Fund Account(Changed from Government Consolidated Account)
RoD (Danida) Representation Office of Denmark
DGPCL Druk Green Power Corporation Limited
DNB Department of National Budget
DPA Department of Public Accounts
DRC Department of Revenue and Customs
FRR Financial Rules and Regulations
FY Fiscal Year
GDP Gross Domestic Product
GNHC Gross National Happiness Commission
GoA Government of Austria
GoD Government of Denmark
GoI Government of India
IDA International Development Assistance
IFAD International Fund for Agriculture Development
JICA Japan International Cooperation Agency
KFAED Kuwait Fund for Arab Economic Development
KHPC Kurichhu Hydro Power Corporation
MYRB Multi-Year Rolling Budget
NPPF National Pension and Provident Fund
PEMS Public Expenditure Management System
PFA Public Finance Act
PIT Personal Income Tax
RE Rural Electrification
RGoB Royal Government of Bhutan
RMA Royal Monetary Authority
SA Spending Agencies
THPC Tala Hydro Power Corporation
WB World Bank
WMA Ways and Means Advance
T-Bills Treasury Bills
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 vi
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 vii
CONTENTS Page No
i Statement of Responsibility i
ii Auditor Generals Report iii
iii List of Abbreviations v
iv Table of Contents vii
1 Introduction 1
2 Overview 1
3 Budget Estimates,Actual Outcomes and Financing 2
4 Receipts & Payments 3
5 Government Receipt by Sources 4
5.1 Internal Revenue 5
5.2 External Grants 7
5.3 Borrowings 7
5.3.1 Internal 8
5.3.2 External 8
5.4 Recovery of Loans 9
5.5 Other Receipts &Payments 9
6 Operational Results 10
6.1 Expenditure Growth 10
6.1.1 Current Expenditure 11
6.1.2 Government Subsidy Payment 13
6.1.3 Interest Payment 14
6.1.4 Capital Expenditure 18
6.1.5 On-Lending 20
6.1.6 Loan Repayment 20
6.1.7 Sector wise Expenditure 24
7 Government Debt Position 26
7.1 Domestic Debt 26
7.2 External Debt 26
8 Government Equity Holdings 35
9 Government Guarantees 35
10 Consolidated Fund Account 39
11 Government Budget Fund Account 40
12 Refundable Deposit,Revolving and Trust Funds 41
13 Current Deposits Account 41
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 viii
GRAPHS
I Government Receipts by Sources 5
II Total Expenditure for FY 2011-12 & 2012-13 11
III Internal Revenue and Current Expenditure comparison 12
IV Statement of Interest payments 14
V Repayment of Principal loans 21
VI Summary of expenditure by Sectors 25
TABLES
Table 1 Budget and Actual Comparison and Financing 3
Table 2 Consolidated Receipts &Payments Statement 4
Table 3 Government Receipt by Sources 5
Table 4 Summary of Revenue Collection 6
Table 5 International Assistances (Grants) received 7
Table 6 International Assistances (Loans) received 8
Table 7 Recovery of Loans for the FY 2012-2013 9
Table 8 Statement of Other Receipts &Payments 10
Table 9 Summary of Expenditure 11
Table 10 Current Expenditure & Internal Revenue Comparison 12
Table 11 Government Subsidy Payment 13
Table 12 Expenditure on Interest Payment 14
Table 13 Interest Payment on Loans - By Lender 15
Table 14 Interest Payment on Loans By RGoB & Corpn. 16
Table 15 Capital & Repayment Expenditure comparison with Grants & Borrowings 19
Table 16 Statement of On-Lending 20
Table 17 Repayment of Principal Loans Summary 20
Table 18 Repayment of Principal Loans - By Lender 21
Table 19 Repayment of Principal Loans - By RGoB & Corpn 23
Table 20 Summary of Expenditure by Sectors 24
Table 21 Summary of Revised Budget and Actual Expenditure 25
Table 22 Statement of Outstanding Loans Summary 27
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 ix
Table 23 Statement of Outstanding Loans Detailed 29
Table 24 Statement of Government Equity Holdings 36
Table 25 Statement of Government Guarantees 38
Table 26 Reconciliation of Consolidated Fund Account 39
Table 27 Reconciliation of Govt. Budget Fund Account 40
Annexure 1 - Credit as per Cashbook but not in BOB 40
Annexure 2 - Credit as per BOB but not in Cashbook 40
Table 28 Statement of Refundable deposit, Revolving and Trust Funds 41
Table 29 Summary of Current Deposits Account 41
SCHEDULES
Schedule 1 Schedule of Revised Budget and Actual Outcomes 42
Schedule 2 Schedule of Expenditure Summary by Object Class 52
Schedule 3 Schedule of Loans received: by Lender 55
Schedule 4 Schedule of Grants received: by Donor 56
Schedule 5 Schedule of Expenditure Summary by Function 94
Schedule 6 Schedule of Non-Revenue Deposits 145
Schedule 7 Schedule of Other Recoveries and Remittances 146
Schedule 8 Schedule of Revenue Receipts and Remittances 154
Schedule 9 Schedule of Miscellaneous Receipts and Payments 162
Schedule 10 Schedule of Dishonored Cheques 170
Schedule 11 Schedule of Advances and Suspense 172
Schedule 12 Schedule of Government Current Deposits Account 180Schedule 13 Schedule of Tax Revenue 195Schedule 14 Schedule of Non-Tax Revenue 197Schedule 15 Statement showing Actual outcomes during 10 FYP 199Schedule 16 Notes to Accounts 200
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 2013 1
1. INTRODUCTION
The Annual Financial Statements (AFS) reporting on the budgetary operations of the Royal
Government of Bhutan (RGoB) for the Fiscal Year (FY) 2012-13 has been prepared by the
Department of Public Accounts (DPA) as per the provisions of the Public Finance Act, 2007 (PFA
2007), Public Finance (Amendment) Act 2012 and the Financial Rules and Regulations, 2001
(FRR 2001).
The financial statements are based on the monthly accounts of the budgetary bodies recorded
in the Public Expenditure Management System (PEMS) and information received from other
relevant agencies and organizations. The statements and schedules presented in the AFS
reflect the financial position of the RGoB as on 30th June 2013.
2. OVERVIEW
The FY 2012-13 started with an approved budget of Nu. 33,486.239 million and an estimated
resources of Nu. 31,891.042 million, resulting in a fiscal deficit1 of Nu. 1,595.197 million and
a resource gap2 of Nu. 670.431 million. However, with an actual realized resources of Nu.
30,656.117 million and the actual outcome of Nu. 34,900.809 million, the FY 2012-13 ended with
a fiscal deficit of Nu. 4,244.692 million and a resource gap of Nu. 3,752.386 million. The fiscal
deficit and resource gap is about 4.1 percent and 3.6 percent of GDP3 respectively.
The total Government expenditure during the FY 2012-13 amounted to Nu. 36,527.815 million
accounting for 34.7 percent of the GDP and registering an increase of 24.9 percent from the
previous FY. The variance between the revised budget and the budget outturn was 7.2 percent.
The Government debt stock outstanding as on 30th June 2013 was Nu. 101,310.193 million
equivalent to US$ 1,704.842 million4 which is about 97 percent of the estimated GDP. The
outstanding Government Equity Holdings and Government Guarantees as on 30th June 2013
are Nu. 48,012.396 million and Nu. 2,587.693 million5 respectively.
1 Fiscaldeficit/surplus=(taxes+feesandincomefrompropertyandenterprises+ proceedsfromsaleofland and other capital assets +recovery ofon-lending +grants) (current expenditures + capital expenditures + lending). Source: FRR2001.
2 Resource gap = (taxes + fees and income from property and enterprises + proceeds from sale of land and other capital assets + recovery of on-lending + grants + project tied borrowings) (current expenditures + capital expenditures + on-lending + repayments).
3 GDP as per National Statistics Bureau is Nu. 104,473.0034 Refer Table 22 & Table 23.5 Refer Table 24 & Table 25.
Financial Statements of the Royal Government of Bhutan for the Year Ended 30th June 20